Inside the job of a fractional CFO

Pauline Healey, founder of Logical BI – outsourced CFO and strategic finance consultant – gives an insight into her role as a Fractional CFO.

You've probably heard the term. Maybe a fellow business owner mentioned their 'Fractional CFO' in passing, or you've seen it pop up in a startup community thread.

It's a fair question. "Fractional CFO" sounds impressive but vague – somewhere between an accountant, a consultant and a mysterious financial oracle who occasionally appears to declare that things are either fine, or not fine.

If you're wondering whether your business needs one, here's what my month typically looks like.

First, the obvious

I'm not your bookkeeper. I'm not reconciling bank accounts, chasing receipts or filing VAT returns. That's your accountant or bookkeeper's job. I assume that function is already covered – or I help you fix it if it isn't.

I'm also not a full-time employee. I work with several companies at once, dedicating anywhere from a few hours a week to several days a month to each. You're buying a slice of senior financial expertise, tailored to the stage your business is at.

Week 1 – The numbers

At the start of each month, I'm pulling together the previous month's financial close, working with your bookkeeper or finance team to make sure the P&L, balance sheet and cash flow statement are accurate.

But I'm not just checking boxes. I'm asking: what story do these numbers tell? What's changed? What does the founder need to know before making any big decisions this month?

I also build or maintain a management dashboard that goes beyond the accounting software. Runway. Burn rate. Revenue per customer. Gross margin by product line. Customer acquisition cost versus lifetime value. These aren't vanity metrics; they're early warning systems.

Week 2 – The founder conversation

The monthly or fortnightly call with you is often the most visible part of the engagement, but it's only valuable because of all the preparation that comes first.

This is where I translate the numbers into plain language. I might explain whether your cash position supports your growth plans, flag pressure on margins you hadn't spotted, or talk through what happens if you recruit three more people next quarter.

This is also where most business owners tell me they see the value. Not in the spreadsheet, but in having someone who understands the business and can say: "Here's what's working. Here's what concerns me. Here's what I'd be thinking about before next month."

Week 3 – Project work

I rarely spend all my time on reporting. Much of the value comes from project work that reflects where each business is in its journey.

That could mean building the financial model investors will scrutinise, testing the viability of a new pricing strategy, modelling the impact of new hires on cash flow, or helping a client decide whether debt funding is the right option.

Every project is different, but the aim is the same: giving business owners the financial insight they need before making important decisions.

Week 4 – The unexpected

The quieter work often happens here: reviewing financial systems, improving controls, making sure the finance function can scale, or working with legal advisers on the financial implications of a new contract.

Then there are the unexpected calls – a customer wants unusual payment terms, a funding opportunity appears, or a founder needs a quick sense check before saying yes to something. That's all part of the role too.

When do you actually need one?

You probably don't need a Fractional CFO if you're pre-revenue and running lean. A good bookkeeper and a quarterly check-in with a startup-savvy accountant is likely enough.

You probably do need one when decisions become more complex. You're approaching a fundraise, hiring quickly, managing multiple revenue streams, or finding that "gut feel" financial decisions are becoming increasingly risky.

Here's my test. Are you regularly making decisions about pricing, hiring, investment or strategy without being completely sure of the financial implications? If the answer is yes, that's exactly the gap a Fractional CFO fills.

To find out how Logical BI can support your growth plans, visit logicalbi.com or call 01772 287400.