When you're launching a startup, you quickly realize taxes are just one piece of the financial puzzle.
Cash flow forecasting, fundraising prep, and strategic financial modeling are just as critical, if not more.
That’s where afractional CFOcomes in: providing the high-level financial leadership your startup needs without the full-time cost.
Find fractional CFOs for startups on Sam’s List.
What a Fractional CFO Does for Startups
A fractional CFO provides part-time executive financial strategy, helping with:
Burn rate management
Cash flow forecasting
Financial modeling for fundraising
Pricing strategy analysis
Scenario planning for growth
Board and investor reporting
They don’t just handle taxes or bookkeeping, they help drive financial decisions that could make or break your startup.
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The Limitations of Only Having a CPA
Most CPAs:
Focus primarily on tax compliance
Offer limited proactive financial strategy
Work reactively (year-end vs. real-time cash planning)
While important, CPAs aren't typically responsible for forecasting burn, prepping for Series A/B rounds, or running strategic models.
ACPAalone often isn't enough for fast-growing startups.
When Startups Should Hire a Fractional CFO
It’s time to bring on afractional CFOwhen:
Your burn rate is over $30k/month
You’re preparing for a funding round
Cash flow forecasting is critical to decision-making
You need financial modeling for investors or board meetings
You’re scaling revenue but margin management is critical
Hiring too late could mean running out of cash or looking disorganized during a raise.
How Fractional CFOs Help With Fundraising
When raising capital, a fractional CFO can:
Build investor-friendly models
Prepare GAAP-compliant financials if needed
Forecast capital needs and runway
Help defend assumptions during due diligence
Founders who work with fractional CFOs often move faster through raises and close bigger rounds.
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How Sam’s List Helps
Sam’s Listconnects startups with vettedfractional CFOswho specialize in:
SaaS companies
Ecommerce startups
Seed through Series C companies
Founder-led companies preparing for scaling or exits
You can browse profiles by specialty and growth stage needs.
Explore fractional CFOs on Sam’s List.
FAQs
What’s the difference between a CPA and a fractional CFO?
A CPA focuses on tax compliance; a fractional CFO provides strategic financial leadership, forecasting, fundraising prep, and growth planning.
How much does a fractional CFO cost for startups?
Typically between $3,000–$10,000/month depending on engagement size and company stage.
When is the right time for a startup to hire a fractional CFO?
When burn rate grows beyond $30k/month or when preparing for your first major funding round.
Can a fractional CFO help a pre-seed or seed stage startup?
Yes, especially if you're managing investor money or planning your next raise.
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Author: Kimi, Co-founder of Sam's List
Kimi writes about what she's learning while building Sam's List and shares honest takeaways from her conversations with accountants and financial advisors across the country. None of this is financial advice—just the stuff most people wish someone told them sooner.
