A fractional CFO typically suits a startup for 18 to 24 months. Move to a full-time first CFO when the finance work is continuous, not occasional. Many founders can put a finance hire under the fractional CFO first, and most end up hiring someone new rather than converting the fractional.
A fractional CFO has a shelf life, and that is the point
A fractional CFO is a senior finance leader who works part time for several companies at once, billed by the hour, day or month. Shelf life: 18 to 24 months. In my experience a fractional CFO is relevant to a startup for a finite period, usually 18 to 24 months.[1] That is roughly the window where the business needs proper financial visibility but does not yet have the volume of work to fill a full-time seat.
The hours show when the window is closing. Fractional finance work can run as low as five to ten hours a week, or even a month. Typical fractional costs for seed-stage founders run around $1k to $3k a month for 5 to 10 hours a month, scaling to $5k to $10k a month for 5 to 10 hours a week when the business is in hyper-growth or operationally complex. The full bands and how they are built are on what a part-time CFO costs in Australia. When the hours keep climbing toward the top of that range and stay there, the arrangement has started to describe a full-time job.
If you are still deciding whether fractional is right at all, start with when a fractional CFO works and when you have outgrown it.
When to move from fractional to a full-time first CFO
Move from a fractional CFO to a full-time first CFO when the finance work becomes continuous: the fractional hours stay at the top of the range, the business turns operationally complex, and nobody internal runs month-end reporting. The trigger is complexity, not revenue. Complexity arrives at different times in different businesses. A single-product SaaS business might not need even its first finance hire until Series B and can rely on a fractional CFO for a long time. A complex deep tech business, say robotics, needs a finance professional much sooner.[2]
The order above is how I read it for the founders I work with. The fractional CFO gives the business visibility, a finance hire underneath takes over month-end reporting as the work grows, and the full-time first CFO arrives when the model, the raise and the board conversation need one owner every day. If you are in SaaS, I go deeper on that timing in when a SaaS startup needs a CFO, and the fintech version is in when a fintech needs a CFO.
| Stay fractional | Start the full-time search | |
|---|---|---|
| Hours | A few hours a week or month covers the decisions that need senior input. | The hours keep climbing and stay at the top of the fractional range. |
| Business shape | Lean, single product, simple revenue model. | Hardware or deep tech, or several products and entities adding complexity. |
| Time on the arrangement | Inside the first 18 months or so. | Approaching the 18 to 24 month mark where fractional usually ends. |
| Who runs the day to day | A Financial Controller (FC) or head of finance already handles it. | Nobody internal runs month-end reporting, and the fractional CFO is doing it by default. |
| What your provider says | They think the scope still fits a fractional engagement. | They tell you the business has outgrown them. Good ones do, and that is the signal to act on. |
The step most founders skip: a finance hire under the fractional
Consider a finance hire under the fractional first. Going straight from fractional to a full-time CFO is not always the right move. Some companies do not need a full-time CFO yet and can save $50k to $100k by keeping a fractional CFO on the strategic work and putting a strong Financial Controller (FC) or head of finance underneath to run the day to day. I made that point on the Behind The Story podcast, and it is worth testing before you commit to a full-time salary.
A finance hire under the fractional also makes the eventual CFO search easier. A first CFO who inherits clean month-end reporting and a person running it can start on strategy in week one. Which profile to hire first is its own decision, and I set it out in whether your first finance hire should be a controller or FP&A.
Should you convert your fractional CFO to full time?
The fractional CFO was engaged for a different job from the one the business needs next, which is more team, more day-to-day execution and all of their time inside one company. Fractional finance relationships typically last 18 to 24 months, and once a business outgrows the fractional provider, the provider often refers the client back to me for the full-time hire. I described that loop on the Honest Wealth Builders podcast.
If your fractional CFO does want the permanent seat, treat them as a serious candidate and run the process anyway. Write the full-time brief first, then assess them against it exactly as you would an outside candidate, ideally alongside one. I make the same argument for interim CFOs (full-time CFOs on fixed contracts) who are drifting into permanence in when to use an interim CFO, and it applies here too. The offer is a full-time employment package, not a contractor retainer with more hours, and the ATO guidance on employees versus independent contractors sets out why that difference matters. Price the offer against Australian CFO salary bands and structure it the way I describe in what goes into a first CFO offer package.
Most early startups are too early for a full-time CFO
A lot of the founders who call me are too early for a full-time finance person. When that happens I refer them to a good fractional finance provider, for free. The hours on a fractional engagement are small, so a recruitment fee on it would be tiny anyway. The referral is worth more than the fee.
The fractional CFOs I refer founders to often send work back, and one of my recent first CFO searches came to me directly from a fractional CFO.[3] A founder who needs a fractional CFO today might be building something that needs a full-time hire in 18 months, and that founder remembers who gave them honest advice when the timing is right.
Tom Hunter's view: As I said on Builders & Doers, for a SaaS company the first CFO might be Series B or later, and “if they've got a really good fractional person and it is a simple business they can get away without a legitimate CFO for a long time.” If you do want to commit to a CFO, “you also don't have to commit to full-time. You could get a fractional person in. And that's very very very common.” (Builders & Doers, September 2026; video at 2:20, 6:55)
Getting help with the first CFO search
At Story Recruitment my lane is two hires: the first finance hire and the first CFO, for Australian VC-backed tech, fintech and deep tech startups and scale-ups. The fractional-to-full-time moment is where the second of those usually begins. If your fractional CFO has told you it is time, or you suspect it is, I can run the first CFO search, and I will tell you plainly if the better answer is more time on fractional with a finance hire underneath. For how that search runs end to end, see CFO recruitment for Australian startups, and for the wider picture of who to hire when, the startup finance hiring guides.
Every option between no finance help and a full-time CFO is in the fractional CFO guides for Australian startups.
Common questions
How long should a startup use a fractional CFO?
Usually 18 to 24 months, the window where a startup needs proper financial visibility but not yet a full-time finance leader.
When should a fractional CFO become a full-time CFO?
When the finance work is continuous rather than occasional. A single-product SaaS business can often wait until around Series B, while deep tech such as robotics needs a full-time finance leader sooner.
Can I convert my fractional CFO into a full-time employee?
You can. If yours wants the seat, assess them against a written full-time brief alongside outside candidates.
Is there a step between a fractional CFO and a full-time CFO?
Often, yes: keep the fractional CFO on strategy and hire a Financial Controller or head of finance underneath, which can save $50k to $100k.
What does a fractional CFO cost compared with a full-time CFO?
Seed-stage founders typically pay around $1k to $3k a month for fractional finance, rising to $5k to $10k a month in complex businesses, while a full-time first CFO is a salaried executive package priced against Australian CFO salary bands.
References
- Fractional finance is relevant to a startup for a finite period, usually 18 to 24 months, before a full-timer is needed. Tom Hunter on the Honest Wealth Builders podcast.
- A single-product SaaS business can lean on a fractional CFO for a long time, sometimes not making a first finance hire until Series B, while a robotics or similar deep tech business needs a finance professional far earlier. Tom Hunter, from conversations with the startups he recruits for.
- Fractional CFOs Tom refers founders to regularly refer work back, and one of his recent CFO roles came directly from a fractional CFO. Tom Hunter on the Honest Wealth Builders podcast.
These guides set out how we see it, drawn from the searches we run and the finance leaders we work with. They are general information about the market, not financial, accounting or legal advice, and they are no substitute for advice on your own circumstances.