Interim CFO or fractional CFO: what is the difference?

An interim CFO and a fractional CFO look alike, but they solve different problems. An interim CFO takes over a role for a limited time, usually full time. A fractional CFO works part time and for longer, often a few days a month.

What does an interim CFO do?

An interim CFO steps in when there is a gap: your CFO leaves, is away for a long time, or an acquisition or restructuring needs full attention. The assignment is fixed in time and the commitment is high, often four or five days a week.

What does a fractional CFO do?

A fractional CFO is a senior finance lead you hire part time, often in a company that never had a full-time CFO. The same role is also called an outsourced CFO, CFO as a service or part-time CFO. The focus is on looking ahead: forecast, cash flow, margins, reporting and growth decisions.

The differences at a glance

• Commitment: interim is usually full time, fractional is part time.
• Duration: interim lasts until the gap is filled, fractional lasts as long as your company needs the expertise.
• Trigger: interim covers a departure or crisis, fractional builds structure where there was none.
• Cost: with fractional you only pay for the time you actually use.

Which one fits your company?

If you had a CFO and lost them, interim makes sense. If you never had a CFO but need more insight into your numbers, fractional fits better. That is the case for most SMEs and scale-ups. Read more about fractional CFO services, or see what a CFO for SMEs or CFO for scale-ups does.