Hiring a part-time, outsourced CFO has become a popular move for startups and small businesses. It’s a smart play—you get financial expertise to set up controls and reporting without a huge investment. But then something happens. The business starts taking off. You land new investors, launch new products, expand to new markets. Suddenly your needs have outgrown what your trusty fractional CFO can handle on a few days a month. 

This is when every scaling company faces the same key question: Is it time to make the leap to a full-time, in-house CFO?

It’s a big move, no doubt. But if you find yourself nodding to any of the scenarios below, it may be a sign your business is ready for dedicated financial leadership.

Your company is growing fast—handling the complexity requires full-time strategic finance leadership. 

You need more than specialized project work—you need integrated guidance across accounting, FP&A, procurement, and beyond.

Fundraising has stepped up—later stage investors want to see a proven CFO at the helm.

Workload exceeds capacity—your fractional CFO is spread too thin across clients to meet your needs.

Transitioning from fractional to full-time CFO means your company is maturing. You’re ready to invest in senior-level talent and move to the next level of growth. It’s a turning point.

Making the Leap to Full-Time

While outsourced fractional CFOs can serve an important purpose, especially early on, there comes a time when transitioning to a full-time, in-house CFO is necessary. But when is the right time to make this leap? Here are some signals:

Your company is rapidly expanding and scaling upward. Handling the increasing complexity requires someone full-time.

You need greater strategic guidance vs. just periodic specialized projects. A part-time resource cannot provide this level of integrated leadership.

Fundraising needs have changed. For larger or later stage raises, investors want to see a proven CFO leading the financial strategy.

Workload exceeds capacity for a part-time resource. The company has grown beyond what a fractional CFO can handle effectively while split across other clients.

Financial controls and reporting have become more sophisticated. Deep institutional knowledge is needed to oversee this.

Making the transition from a fractional CFO to full-time is a positive signal that your business is maturing. You are ready to invest in dedicated senior level leadership and move into the next stage of scale and growth. The decision marks an inflection point.

Fractional vs. Full-Time CFO – Evaluating the Differences

Let’s look at some of the key differences between fractional and full-time models:

– Time Commitment – Full-time means just that—focused solely on your finance needs, not splitting hours across multiple companies. 

– Scope – Fractional CFOs handle targeted projects. A full-timer oversees a wider range of finance responsibilities.

– Strategic Involvement – Periodic advice vs. integrated leadership on growth decisions and financial strategy.

– Authority – Full-time CFOs have greater stake and control over systems and processes. 

– Financial Controls – Robust controls require full-time presence and familiarity. Fractional has limitations.

– Growth Initiatives – M&A, capital raises, expansion need hands-on CFO involvement. Less feasible in fractional model.

Boiled down? Greater commitment, involvement and stake in your company’s success. Your full-time CFO becomes a core strategic leader, not just an advisor. 

Making a Successful Transition

This shift is no small feat—here are some tips to smoothly move from fractional to full-time CFO:

– Plan ahead – Give your fractional CFO plenty of notice and start the search process months in advance. 

– Define must-haves – Document the key skills, experience and responsibilities needed for this new chapter.

– Consider an interim step – Bridge the gap by making your fractional CFO full-time temporarily. 

– Look for relevant experience – Find someone who’s done this before and can share lessons learned.

– Ask tough questions – Thoroughly assess abilities across finance disciplines and strategy.

– Check references – Speak to people who have worked with the candidate before. Watch for red flags.

– Align on vision – Ensure your new CFO understands the growth plan and key financial milestones.

– Onboard deeply – Schedule substantial time for reviewing past financials, processes and team structure.

– Open communication – Encourage candid feedback between new CFO and company leaders.

With careful preparation, you can smoothly pass the baton from fractional to full-time CFO leadership.

Benefits of Having a Full-Time CFO

What are some of the tangible benefits companies see after this fractional to full-time CFO transition?

Dedicated Strategic Leadership: An in-house CFO provides complete focus on the financial health and growth of your business. You gain a strategic thought partner directing your financial priorities and moves.

Expert Oversight: A full-time CFO has the time for detailed oversight of all aspects of financial management – accounting, analysis, reporting, budgeting, controls, etc.

Growth Planning: Your CFO can devote energy to modeling, forecasting and supporting upcoming initiatives like new market expansion, fundraising, M&A activity, and more.

Executive Team Contribution: As a key member of the leadership team, your CFO brings financial acumen and insight to inform strategic decisions.

Fundraising Capabilities: Investors are reassured by a proven CFO at the helm who intimately understands capital needs and deployments.

Improved Risk Management: With full-time presence and controls, your CFO can rapidly respond to changes and keep the leadership team aware of risks.

Scaling Finance Function: The expertise is there to expand the finance team, improve systems and processes to support growth.

The payoff is having an integrated strategic finance leader dedicated to your company’s financial success and scaling for the future.

Making the Leap

For many successful startups and growth companies, the transition from a fractional to full-time CFO marks a key inflection point. Upgrading to dedicated financial leadership signifies maturity, increases strategic capability, and prepares the company for future investment and expansion.

While part-time fractional resources can provide vital support in early stages, the demands of growth mandate a full-time CFO at some juncture. The timing depends on the pace of expansion, fundraising needs, stage of financial management, and need for greater strategy guidance.

With careful preparation, by assessing capabilities needed, interviewing thoroughly and onboarding deeply, the transition can happen smoothly. The result is a financial leader solely focused on driving growth and financial success as part of the executive team. The transition may feel like a leap, but it is one worth making to enable your company’s continued upward trajectory.