You don’t need a full-time finance team to run a high-performing business; you need the proper structure. Many professional firms hit a ceiling because they don’t have anyone translating the numbers into a real strategy. Others stall out because the financial data is outdated, incomplete, or buried in bad bookkeeping.
That’s where a fractional CFO or outsourced controller comes in. But they’re not interchangeable, and hiring the wrong one can waste time and money. Here’s how to figure out what you actually need.
What Does a Fractional CFO Do?
A fractional CFO is a strategic partner who helps you plan for the future. They build budgets, forecast cash flow, model growth scenarios, and advise on high-level pricing, hiring, or expansion decisions.
They don’t manage your books or file taxes. Their job is to help you interpret the numbers, not prepare them. If your business lacks forward-looking financial planning or keeps getting blindsided by cash shortfalls, a CFO is the fix.
What Does an Outsourced Controller Do?
An outsourced controller ensures your financial data is accurate, organized, and usable. They manage bookkeeping systems, oversee monthly closes, reconcile accounts, and build reporting processes that give you visibility into your business.
Think of the controller as the architect of your financial infrastructure. If your reports are late, your chart of accounts is a mess, or your financials don’t match what’s in your bank account, you need a controller before anything else.
When You Might Need Both
Both roles matter if you’re scaling beyond $1M–$5M in revenue and want to operate like a much bigger company. A controller keeps the financial engine running clean. A CFO uses that engine to plot the route ahead.
Without a controller, your CFO is guessing. Without a CFO, your controller is only looking backward. High-growth firms often reach a point where both roles are essential for different but equally critical reasons.
Which Comes First?
Start with the gaps. If you’re struggling with messy books, unclear reports, or inaccurate data, a controller should be your first move. You can’t plan around data you can’t trust.
If your books are clean, but you’re still unsure about cash flow, profitability, or long-term planning, you’re ready for a fractional CFO.
Some firms start with a controller and upgrade to CFO support. Others outsource both simultaneously to build a tight finance function from end to end.
What About Your Bookkeeper?
A bookkeeper tracks daily transactions, processes invoices, and handles payroll. That’s important, but it’s not enough. Bookkeepers don’t create financial strategies, and they’re not equipped to manage reporting, analysis, or planning.
If you rely on a bookkeeper for controller or CFO-level work, you’re overloading the role and undercutting your growth.
Signs You Need to Upgrade Your Finance Team
- You’re making good money but don’t know where it’s going
- You only look at your financials during tax season
- Your monthly reports are consistently late or confusing
- You’re planning to scale but don’t have a financial roadmap
- You’re unsure how changes in revenue will impact cash flow
These are all signs that it’s time to hire higher-level financial leadership, whether that’s a controller, a CFO, or both.
The Real ROI of the Right Finance Team
Having clean books and a forward-looking strategy is how small businesses scale profitably. It’s also how they avoid expensive mistakes. You can’t cut your way to growth, and you can’t grow without the proper financial structure.
You don’t need to build a full finance department. You just need the right people in the right roles focused on the right outcomes.
Build the Team That Builds Your Profit
Profit Leap helps professional firms structure their finance functions for scale without adding overhead. Whether you need a controller, a CFO, or both, we design systems that make your business more profitable, predictable, and valuable.
Let’s talk about what your business actually needs. Contact us today.
