Fractional CFO cost in 2020
- Per hour $175-$300
- Per day $1,200-$1,500
- Per month $3,000-$10,000
- Most Common $5,000-$7,000
An outsourced CFO service provides flexibility. Hire a fractional CFO per hour, per day, per month, or per year.
When you hire a part-time CFO, you specify the required services. Seek a short term relationship or a long-term partnership that lasts a decade.
Full-Time CFO Cost 2020
- A full-time CFO can make upwards of $200,000 per year.
- The average CFO makes $380,866 a year in the US
The cost makes it impossible for many businesses to hire an in-house CFO. Which is why many businesses outsource these critical duties at a fraction of the cost. So, how much does a fractional CFO cost?
Part-Time CFO Packages
- Basic plans/financial reporting $250-$300 per session
- Monthly to quarterly packages $300-$800
- Benchmark reporting $1,000 + (depending on size of business)
Some offer part-time CFO packages or bundled plans. You can find packages that charge per session, month, or quarter. Rates vary depending on the breadth of the work and the depth of analysis.
However, many part-time CFO services companies don’t advertise package deals. This is because the true nature of the service is customized. They must understand your needs and goals before creating a unique and customized plan for your business.
Outsourced CFO service packages are devised after considering:
- The type of systems your company uses
- Size and duties of current personnel
- Whether you have a full-time accountant or bookkeeper
- The size and volatility of your market
- The number and type of sales channels leveraged by your business
Additional Part-Time CFO Costs
Additional costs may apply depending on your location, level of need, and availability of your fractional CFO. Some experts have clients pay for travel, room, and expenses if they need to make arrangements for training, meetings, integration, etc.
Also, the relationship may necessitate other expenses such as QuickBooks software and training someone who can bridge the gap between daily in-house operations and remote contact with your fractional CFO service.
Fractional CFO Cost Journey
As mentioned, the average relationship lasts for one to two years, which starts with a ‘Discovery Phase’.
Discovery rates average $1,500 and will establish immediate fixes as well as short-to-long term actions and business aspirations.
After the Discovery Phase, businesses create customized journeys with fractional CFO service providers. A timeline may look something like this:
- Initial consultation → fix immediate issues (1-3 mos)
- Create an actionable plan (1-6 mos)
- Implement and revise (6 mos – several years)
- Begin to address bigger projects and business growth
In some cases, businesses partner with fractional CFO services for a decade or longer as the relationship allows for growth and continued success.
How Much Does a Virtual CFO Cost vs Full-Time CFO
Should you consider CFO consulting hourly rates, try a monthly service plan, or hire a full-time chief financial officer? Consider some calculations:
Perhaps you need a fractional or part-time service provider for occasional specific projects from time-to-time, resulting in 80 total hours at the end of the year. At $300 per hour, that’s $24,000.
If you need a fractional CFO more regularly, say all day twelve times a year, for accounting, to ensure the books are accurate and help you make strategic and profitable business decisions, it would cost $18,000 (at the fractional CFO rate of $1,500 per day).
Maybe you’re undergoing a merger or acquisition and need an experienced CFO for a few months. It would cost you somewhere between $15,000-$30,0000, which is significantly more affordable than the $200,000+ (plus benefits) a full-time expert would demand.
CFO Hourly and Yearly Pay Rate By State in 2020
New York – CFO Salary
$75.89 $157,859
Massachusetts – CFO Salary
$75.18 $156,366
Washington – CFO Salary
$74.65 $155,275
New Hampshire – CFO Salary
$73.16 $152,181
Hawaii – CFO Salary
$72.20 $150,178
Maryland – CFO Salary
$69.67 $144,914
Connecticut – CFO Salary
$69.65 $144,868
Rhode Island – CFO Salary
$69.08 $143,690
Alaska – CFO Salary
$68.99 $143,504
Vermont – CFO Salary
$68.71 $142,909
Nebraska – CFO Salary
$68.62 $142,728
Nevada – CFO Salary
$68.45 $142,378
North Dakota – CFO Salary
$68.19 $141,839
Wyoming – CFO Salary
$68.13 $141,716
California – CFO Salary
$68.02 $141,486
Virginia – CFO Salary
$67.72 $140,857
Kentucky – CFO Salary
$66.36 $138,022
South Dakota – CFO Salary
$66.20 $137,697
New Jersey – CFO Salary
$66.06 $137,399
West Virginia – CFO Salary
$65.98 $137,231
Pennsylvania – CFO Salary
$65.66 $136,568
South Carolina – CFO Salary
$65.32 $135,861
Minnesota – CFO Salary
$65.26 $135,737
Oregon – CFO Salary
$65.10 $135,408
Delaware – CFO Salary
$65.09 $135,391
Tennessee – CFO Salary
$65.05 $135,294
Colorado – CFO Salary
$65.00 $135,209
Montana – CFO Salary
$64.96 $135,110
Ohio – CFO Salary
$64.58 $134,319
Wisconsin – CFO Salary
$64.42 $133,999
Arizona – CFO Salary
$64.29 $133,720
Kansas – CFO Salary
$64.01 $133,143
Utah – CFO Salary
$63.98 $133,084
Indiana – CFO Salary
$63.88 $132,863
Oklahoma – CFO Salary
$63.78 $132,653
Idaho – CFO Salary
$63.59 $132,277
Maine – CFO Salary
$63.55 $132,178
Louisiana – CFO Salary
$63.29 $131,640
Iowa – CFO Salary
$62.64 $130,285
Georgia – CFO Salary
$62.02 $128,999
Texas – CFO Salary
$61.31 $127,518
New Mexico – CFO Salary
$61.17 $127,241
Michigan – CFO Salary
$61.02 $126,919
Arkansas – CFO Salary
$60.97 $126,825
Illinois – CFO Salary
$60.64 $126,136
Alabama – CFO Salary
$60.57 $125,981
Mississippi – CFO Salary
$59.95 $124,705
Missouri – CFO Salary
$59.81 $124,413
Florida – CFO Salary
$58.45 $121,584
North Carolina – CFO Salary
$55.66 $115,774
A full or part-time CFO addresses in-house accounting and balances the books. But more importantly, such professionals ‘interpret’ the numbers, helping you make efficient, timely, and successful business decisions.
A fractional CFO comes to understand your business and core processes so you can focus on business operations, growth, and do what you do best – leading the company.
Among the major benefits of having a CFO is instant access to incredible business strategy. Depending on your needs they’ll build financial models, financial reports, handle debt, accounting, budgets, secure credit, and determine the true costs of doing business.
Businesses that necessitate full-time finance experts don’t have the luxury of utilizing a fractional CFO. Others don’t realize they have the option.
Decide if your time is better spent focused on your business while you let us take care of CFO duties. Request a consultation to discover if our outsourced CFO service is right for you.
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