Fractional CFOs: the connector model for SMEs [UK]

The fractional CFO pitch isn't new, but the connector angle deserves attention. Andy Mellor and Jacinta Magee (speaking at FAB Show, NEC Birmingham, 11-12 March) frame it plainly: you're not just hiring financial planning, you're hiring their contact list.

For SMEs scaling past bookkeeper territory but shy of full-time CFO salaries (six figures plus benefits, plus desk space), fractionals slot in. They bring budgeting, forecasting, cash flow oversight. More importantly, they bring the banker who actually returns calls, the funder who knows your sector, the due diligence accountant who won't disappear mid-deal.

What the numbers show

Case studies (admittedly self-reported) claim 30% cash flow improvements in six months, 15% margin lifts year-on-year. The cost angle is simpler: you pay for days worked, not overhead. No notice period risk, no cultural fit gambling. If it's wrong, you exit cleanly.

The model suits growth phases. Expanding into new markets, prepping for acquisition, implementing new systems. Less suitable if you need daily oversight or someone embedded in weekly management meetings. Pair with solid in-house bookkeeping, not as a replacement.

Where it gets murky

Depth matters. A fractional working two days a month won't catch the operational drift a full-timer would. You trade immersion for flexibility. That's fine if you know what you're buying. Less fine if you expect full-time attention at part-time rates.

Allica Bank is sponsoring FAB's fractional panel (plus a roundtable: "Accountants as connectors: positioning for strategic advisory"). The timing fits. Firms are weighing advisory pivots, clients are asking for more than compliance. Fractionals either slot into that model or compete with it, depending on how practices position themselves.

The connector pitch holds if the network delivers. If you're hiring a title without the Rolodex, you're overpaying for part-time financial planning. Ask for names, check references, clarify what introductions actually mean. The little black book only matters if they'll open it.