What Does a Fractional CFO Do? Day-to-Day Responsibilities
A detailed look at the actual work fractional CFOs perform for startups: from strategic planning to board decks to cash management.
"What exactly would a fractional CFO do for my startup?" It's a fair question. The title sounds impressive, but what does the job actually entail? How does a fractional CFO spend their 10-20 hours per week with your company?
This guide breaks down the actual responsibilities and day-to-day work of a fractional CFO, helping you understand the value they bring and what to expect from the engagement. For a broader overview, see our Complete Guide to Fractional CFO Services.
Key Insight
A fractional CFO isn't just a part-time accountant. They're a strategic partner who brings executive-level financial leadership to your company. Their value is in helping you make better decisions, not just tracking numbers.
Fractional CFO Role Overview
A fractional CFO's work falls into six main categories. The emphasis on each varies based on your company's stage, needs, and immediate priorities.
Strategic Planning
Financial modeling, forecasting, scenario planning
Fundraising
Data rooms, investor models, due diligence
Operations
Systems, processes, controls
Board Reporting
Decks, updates, investor relations
Cash Management
Runway, burn rate, treasury
Team Oversight
Bookkeeper management, vendor relationships
Let's explore each of these areas in detail.
Strategic Planning & Analysis
Strategic planning is often the highest-value work a fractional CFO performs. This is where their experience and pattern recognition really shine.
Strategic Planning Activities
Financial Modeling
- Building 3-5 year financial projections
- Revenue models (bottoms-up and tops-down)
- Unit economics calculations and tracking
- Customer cohort analysis
Budgeting & Forecasting
- Annual budget development
- Quarterly and monthly forecasts
- Budget vs. actual analysis
- Rolling forecasts and reforecasting
Scenario Planning
- Base, optimistic, and pessimistic scenarios
- "What if" analysis for major decisions
- Sensitivity analysis on key assumptions
- Contingency planning
Real-World Example
Situation: A Series A SaaS company is considering whether to invest heavily in enterprise sales or continue focusing on self-serve growth.
What the fractional CFO does:
- Builds financial models for both scenarios
- Analyzes unit economics of enterprise vs. self-serve customers
- Models CAC payback periods and LTV for each segment
- Projects hiring needs and cash runway implications
- Presents analysis to founders with clear recommendations
Result: Data-driven decision about go-to-market strategy with clear financial implications understood upfront.
Fundraising Support
For many startups, fundraising support is the primary reason they engage a fractional CFO. A well-prepared fundraise can mean better terms, higher valuations, and faster closes.
Fundraising Activities
Pre-Fundraise Preparation
- Cleaning up historical financials
- Building investor-ready financial models
- Calculating and presenting key metrics
- Preparing management presentation materials
Data Room Setup
- Organizing historical financial statements
- Preparing supporting schedules and analysis
- Documenting revenue recognition policies
- Compiling cap table and equity documentation
Due Diligence Support
- Responding to investor financial questions
- Preparing additional analysis as requested
- Managing the due diligence process
- Reviewing term sheets and deal terms
The Fundraising ROI
Founders who engage a fractional CFO before fundraising often report faster closes and better terms. Even a 5-10% improvement in valuation on a $10M round represents $500K-$1M in reduced dilution—far exceeding the cost of fractional CFO services.
Financial Operations
Beyond strategy, fractional CFOs ensure your financial operations run smoothly. They don't do the transactional work themselves, but they make sure it gets done correctly. For more on how this differs from other finance roles, see CFO vs Controller vs Bookkeeper.
Operational Activities
Systems & Infrastructure
- Selecting and implementing accounting software
- Setting up chart of accounts and financial structure
- Integrating financial tools (billing, payroll, expenses)
- Establishing reporting workflows
Processes & Controls
- Designing approval workflows for expenses and payments
- Establishing month-end close procedures
- Implementing internal controls
- Creating financial policies (expense, procurement, etc.)
Compliance & Tax
- Coordinating with external CPAs and tax advisors
- Ensuring proper revenue recognition
- Identifying tax credits (R&D, etc.)
- Managing state and local tax compliance
Vendor Management
Reviewing contracts, negotiating terms, and managing relationships with banks, software vendors, and service providers.
Process Improvement
Identifying inefficiencies in financial workflows and implementing improvements that save time and reduce errors.
Board & Investor Reporting
Regular communication with your board and investors is critical. A fractional CFO ensures you present a professional, consistent financial narrative.
Reporting Activities
Board Meetings
- Preparing the financial section of board decks
- Creating consistent metrics dashboards
- Developing variance analysis and commentary
- Attending board meetings (if desired)
- Following up on board questions and requests
Investor Updates
- Drafting monthly or quarterly investor updates
- Preparing financial summaries and highlights
- Responding to ad-hoc investor questions
- Maintaining investor data room
Management Reporting
- Weekly or monthly financial reviews with founders
- Key metrics tracking and trending
- Flash reports on critical metrics
- Department-level financial reviews
Board Deck Financial Section
A typical board deck financial section prepared by a fractional CFO includes:
Financial Summary
- Revenue & growth metrics
- Burn rate & runway
- Key P&L metrics
- Cash position
Analysis & Outlook
- Budget vs. actual variance
- Unit economics trends
- Forecast update
- Financial priorities
Cash Management
For startups, cash is oxygen. A fractional CFO ensures you always know where you stand and never get surprised.
Cash Management Activities
Cash Flow Forecasting
- 13-week rolling cash flow forecasts
- Monthly and quarterly cash projections
- Scenario-based runway analysis
- Cash trigger alerts and thresholds
Burn Rate Management
- Tracking gross and net burn trends
- Identifying burn rate drivers
- Recommending cost optimizations
- Monitoring hiring impact on burn
Treasury
- Bank relationship management
- Cash investment strategies (for companies with excess cash)
- Credit facility evaluation
- Payment timing optimization
Finance Team Oversight
Most early-stage startups have a bookkeeper but no finance team. A fractional CFO provides oversight and direction to ensure the work gets done correctly.
Team Oversight Activities
Bookkeeper Management
- Reviewing monthly close work for accuracy
- Setting priorities and timelines
- Answering accounting questions
- Evaluating bookkeeper performance
Vendor Coordination
- Managing relationship with external CPA
- Coordinating with payroll provider
- Working with benefits broker
- Evaluating new service providers
Future Planning
- Advising on when to make finance hires
- Helping define job descriptions
- Participating in hiring process
- Onboarding and transitioning to full-time CFO
What a Fractional CFO Doesn't Do
Understanding what's outside a fractional CFO's scope is just as important as knowing what they do. Setting clear expectations prevents misunderstandings.
Not Their Job
- Day-to-day bookkeeping and data entry
- Processing payroll
- Preparing tax returns
- AP/AR management
- Expense report processing
- Bank reconciliations
Their Job
- Reviewing and approving bookkeeping work
- Setting up payroll systems and policies
- Coordinating with tax preparers
- Designing AR/AP processes
- Creating expense policies
- Ensuring reconciliations are done
You Still Need a Bookkeeper
A fractional CFO oversees and directs financial work, but they don't do the transactional accounting themselves. You'll need a bookkeeper (in-house or outsourced) to handle the day-to-day work. The fractional CFO ensures that work is done correctly and uses the data for strategic analysis.
A Typical Week in the Life
What does a fractional CFO actually do with their 10-15 hours per week? Here's a realistic example for a Series A SaaS company:
Sample Week (~12 hours)
Monday (2 hours)
- Review previous week's bookkeeping work
- Update cash flow forecast with actuals
- Respond to founder questions via Slack
Tuesday (3 hours)
- Weekly strategy call with CEO (1 hour)
- Work on financial model updates
- Review hiring plan and burn impact
Wednesday (2 hours)
- Prepare board deck financial section
- Call with external CPA about tax planning
Thursday (3 hours)
- Deep work on Series B model
- Review vendor contract for approval
- Answer investor questions from last board meeting
Friday (2 hours)
- Review and approve month-end close
- Update KPI dashboard
- Prepare week-ahead priorities
The mix varies week to week. Some weeks might be heavier on fundraising prep, others on board meeting preparation or strategic analysis. The fractional CFO adjusts based on what's most important at the moment.
Related Articles
Complete Guide to Fractional CFO Services
Everything you need to know
How Much Does a Fractional CFO Cost?
Pricing guide for startups
10 Signs You Need a Fractional CFO
Is it time for financial leadership?
CFO vs Controller vs Bookkeeper
Understanding the different roles
Want to See This in Action?
Eagle Rock CFO provides fractional CFO services for seed and Series A startups. Let's discuss what a fractional CFO engagement would look like for your company.
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