An outsourced CFO buys senior finance judgement without a full-time salary, running $1k to $3k a month at seed stage and $5k to $10k a month for a hyper-growth Australian business. The judgement layer is a bridge of eighteen to twenty-four months.
Outsource the transactional layer first
The most common and most effective structure I see in Australian startups is not an outsourced CFO at all. It is a financial controller in-house handling the higher-end work, with an outsourced bookkeeper covering accounts payable, reconciliations and payroll.[1] That model works best for businesses of roughly ten to fifty people .
The split follows where judgement is needed. The controller handles strategic work and oversight while the outsourced bookkeeper manages transactional processing, which keeps the controller off the low-value work and stops you hiring several full-time finance people too early. Outsourcing the transactional layer is nearly always the right call. Outsourcing the judgement layer is the decision that actually needs thinking about.
Tom Hunter's view: As I said on Olive Insights, “you really need to understand what you actually need, not what you feel you might need or might want one day.” And “you might not necessarily need a full-time person straight away either for your first hire. It really depends on what volume of workload you might have because there's some awesome, really, really good part-time accounting staff out there. And it's hugely underrated.” (Olive Insights, March 2025) The same goes for the senior seat. When a founder asked me for a CFO, what the business actually needed for the next 12 months was someone to build the model, own the finance function and get the next raise ready. Depending on the volume it could even be a fractional CFO a couple of days a week, at a fraction of the cost of the full time CFO he thought he wanted. (LinkedIn, August 2026)
The model scales further than founders expect. One client I work with keeps transaction settlement work offshore while financial reporting and treasury stay onshore.[6] Another client keeps a small finance team local and runs an outsourced offshore transaction processing team, with payroll outsourced to providers in each international region.[7] In both cases the split is the same: judgement stays close, processing goes wherever it is cheapest to do well.
| Layer | Outsource it, or keep it in-house | |
|---|---|---|
| Transactional processing | AP, AR, reconciliations, payroll | Outsource it. A bookkeeper or accounting firm handles this well and cheaply, and it keeps your senior hire off low-value work. |
| Reporting and close | Month-end, compliance, clean numbers | Usually in-house once you are past roughly ten people. This is where a controller earns their salary. |
| Strategic judgement | Model, capital, board | Fractional or outsourced works as a bridge for 18 to 24 months. Becomes a full-time hire as the business approaches $20m ARR. |
What an outsourced CFO gives you, and what it does not
At the top of the stack, an outsourced or fractional CFO buys senior judgement without a full-time salary. For a seed-stage business that runs $1k to $3k a month for five to ten hours a month, scaling to $5k to $10k a month for five to ten hours a week in a hyper-growth or operationally complex business.[2] Used well it delivers eighteen to twenty-four months of proper financial visibility before you need a full-timer.[3]
What it does not give you is presence. An outsourced CFO is not in the room when the pricing conversation happens, not close enough to the team to notice a problem forming, and not accountable in the way an employee is. For a business where finance is mostly reporting and compliance that is fine. For one where finance needs to shape decisions as they are made, the gap becomes expensive.
I set out the fractional model in full, including when it works, when it does not and what it costs.
Where the arrangement breaks
There is a reasonably clear ceiling. For businesses reaching $20m ARR and beyond, a full-time CFO becomes effectively mandatory, because fractional and outsourced arrangements typically break down at that stage.[4] The role stops being a set of discrete questions and becomes continuous: a board that wants a forward view every month, a team to lead, and decisions that cannot wait for the next scheduled session.
A fractional or outsourced CFO is usually relevant for a finite period, typically eighteen to twenty-four months.[5] Treat it as a bridge with a known end rather than a permanent operating model, and plan the permanent hire before the arrangement starts straining.
Choosing between a solo operator and a firm
You are choosing between an individual and a firm, and how many hours a month you need. A solo fractional CFO gives you one relationship and consistent judgement, but limited capacity and no cover when they are unavailable. A firm gives you depth and continuity, usually at a higher rate, with the trade-off that the person in your business may change.
For most founders at the gap stage the solo operator is the better fit, because the value is in the judgement rather than the throughput. Once the volume of work is the constraint rather than the thinking, that is usually the signal you are heading towards a permanent hire.
Whichever you choose, ask one question first: what is the specific market, industry or growth stage where you do your best work? It is the single criterion I use for the referral list of fractional and virtual CFO advisers I share with founders, and anyone who answers “any business” is describing a marketing position rather than an expertise.[8] Referral from someone who has seen their work in a business like yours is the fastest reliable filter.
If you are trying to work out whether the role is a full-time CFO yet, I set out the signals separately.
If the question is whether to keep an outsourced CFO or hire, I set out the signs you have outgrown a fractional CFO.
Common questions
What does an outsourced CFO do?
An outsourced or fractional CFO provides senior finance judgement from outside the business: the model, capital planning, board reporting and the decisions that need experience rather than processing. It typically costs $1k to $3k a month for five to ten hours a month at seed stage, rising to $5k to $10k a month for five to ten hours a week in hyper-growth or operationally complex businesses. What it does not provide is presence in the room when decisions are made.
Should I outsource my whole finance function?
Rarely. The structure that works best for Australian startups of roughly ten to fifty people is an in-house financial controller handling the higher-end work with an outsourced bookkeeper covering accounts payable, reconciliations and payroll. Outsourcing the transactional layer is almost always right. Hand over the judgement layer and you are making a trade-off, one that works best as a time-limited bridge.
When does an outsourced CFO stop working?
Around $20m ARR a full-time CFO becomes effectively mandatory, because fractional and outsourced arrangements typically break down at that stage. The role stops being a set of discrete questions and becomes continuous: a board wanting a forward view every month, a team to lead, and decisions that cannot wait for the next scheduled session. Most fractional arrangements are relevant for a finite period of eighteen to twenty-four months.
Is a solo fractional CFO better than a firm?
It depends on whether your constraint is thinking or throughput. A solo operator gives you one relationship and consistent judgement, with limited capacity and no cover when unavailable. Go to a firm and you buy depth and continuity at a higher rate, though the person in your business may change. At the gap stage most founders are better served by a solo operator, because the value is in the judgement. When volume becomes the constraint, you are usually heading towards a permanent hire.
References
- How I build my referral list of fractional and virtual CFO advisers: the key criterion is their absolute niche, the specific market, industry or growth stage where they do their best work and give the most value.
- Our guidance at Story Recruitment: the classic startup model pairs a Financial Controller handling higher-end work with an outsourced bookkeeper for accounts payable, reconciliations and payroll.
- Our Story Recruitment 2026 fractional finance cost data: $1-3k per month for 5-10 hours per month at seed stage, scaling to $5-10k per month for 5-10 hours per week for hyper-growth or operationally complex businesses.
- Our guidance at Story Recruitment: fractional finance can provide 18-24 months of proper financial visibility before a full-time hire is needed.
- Our guidance at Story Recruitment: for businesses reaching $20m+ ARR a full-time CFO becomes effectively mandatory, as fractional arrangements typically break down at this stage.
- Our guidance at Story Recruitment: a fractional CFO is typically relevant to a startup for a finite period, usually 18 to 24 months.
- From my client calls: one client handles transaction settlements offshore, with financial reporting and treasury management run onshore.
- From my client calls: another client's finance team keeps a small onshore team, runs an outsourced offshore transaction processing team, and outsources payroll to providers for each international entity.
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.