The title ‘chief financial officer (CFO)’ used to be all about the numbers – but not anymore.
Today’s CFO is expected to lead across the business, balancing financial oversight with broader strategic leadership. On average, six functions report to CFOs – up from four in 2016 – and 82% say their responsibilities have expanded significantly over the past five years.
More than half are now responsible for risk, regulatory compliance and merger and acquisition activity. Nearly 40% also lead IT functions, from cybersecurity to digital transformation. And around 40% are driving strategic leadership and organisational change.
In fact, the latest McKinsey and Company CFO Pulse Survey found that 52% of CFOs are dedicating the most time to transformation efforts – not just within finance, but across the broader organisation.
The role is evolving – and so are the solutions
One approach that's been gaining traction to meet the growing complexity of the role is the use of fractional CFOs: seasoned financial leaders who bring high-level expertise, without the full-time overhead.
“We’ve seen a real shift in demand for ‘white-glove’ CFO services”, says Lenny Williams, national manager, strategic projects, at Baker Tilly (Canada).
“What used to be exclusive to large corporations is now within reach for millions of smaller business owners. And while affordability is part of the appeal, it’s about more than cost.''
“Today’s business landscape is complex, technology-driven and fast-paced. Entrepreneurs don’t just want help – they need support that flexes with their business. That’s where a fractional CFO becomes indispensable.”
What is a fractional CFO?
A fractional CFO, also known as an outsourced or portfolio CFO, is a seasoned financial expert who provides part-time, high-level strategic and financial guidance to multiple companies. Typically working as an independent consultant or through a specialised firm, they offer flexible, scalable support without the cost or commitment of a full-time hire.
From full-time to fractional
CFO turnover is at an all-time high.
Driven by stress and burnout, nearly two-thirds of CFOs leave their role within five years. In larger organisations that figure climbs to 68%.
So, it’s no surprise that demand for fractional CFOs has surged 103% in recent years, particularly among SMEs.
“For many growing businesses, a full-time CFO just isn’t practical”, says Stuart Monley, partner at Baker Tilly (Thailand).
“But that doesn’t mean they don’t need one – especially during critical growth phases. Strong financial management is essential for both survival and scale. The problem is that many SMEs can’t find – or can’t afford – the right expertise full-time.”
And it’s not just about balancing the books
“The fractional CFO model allows companies to quickly answer talent shortages and drive short-term projects without the overhead of a full-time hire,” Mr Monley adds.
“For SMEs looking to level up their strategy and build a stronger financial foundation, it just makes sense.”
Not without challenges
Transitioning to an outsourced CFO model can unlock real value – but it’s not without its challenges.
“Trust is everything in finance,” says Mr Williams.
“Outsourcing can feel like losing control, especially when sensitive information is involved. That’s why transparency, robust security and clear expectations from day one are essential. Without clearly defined roles and responsibilities, things can quickly unravel.”
Ron Jansen, partner at Baker Tilly (Netherlands), agrees.
“It’s important that the fractional CFO integrates into existing teams. Start with a robust onboarding plan. Set clear communication and reporting lines and define responsibilities and decision-making authority. Establish what success looks like and align on measurable goals.''
“When everyone understands who’s doing what – and why – the fractional CFO can deliver real impact, fully aligned with the company’s strategy.”
And don’t overlook succession planning, he notes.
“What happens next? Build that into the roadmap from the start.”
The role of technology
Among the most powerful tools reshaping the CFO’s toolkit is artificial intelligence (AI).
“AI is changing the script. It automates routine tasks freeing up CFOs and their teams to focus on more strategic activities. It also powers smarter decision-making through data, trend analysis and scenario modelling,” says Mr Jansen.
Real-time reporting and insights are essential if you want to build a truly flexible organisation today, he adds. But unlocking that value often requires tools and investment many SMEs can’t justify.
“With a fractional CFO, you get access to AI-powered capabilities without the overheads of an enterprise-grade technology stack.”
More than a trend
Far from being just a passing trend, the demand for fractional CFOs is poised to keep growing, ushering in a new era of agile, strategic financial leadership for SMEs.
It’s a model that empowers businesses to tap into high-level expertise and unlock new opportunities for growth, stability and competitiveness in today’s fast-changing environment.
“Financial leadership is different for every business. Some operate with lean teams focused on the essentials: revenue in, costs out. Others have established finance functions but need targeted expertise to support growth or navigate complex projects. That’s why at Baker Tilly we don’t believe in off-the-shelf CFO solutions. We see ourselves as your chief value officer – undertaking a 360-degree review of your goals, challenges and culture. In doing this, we're not just delivering financial expertise, we're delivering the right expertise, tailored to what matters most to you.”
Baker Tilly’s global advisory specialists bring deep expertise and fresh perspective to every challenge. Our CFO advisory team partners with finance leaders to strengthen their function, drive performance and prepare for what’s next.
Related content
