Introduction
Scaling a SaaS business is exciting, but let’s be real: for many founders managing finances can be a real pain. As a founder, you’re juggling product development, customer acquisition, and fundraising, all while trying to keep cash flow in check. So when it comes to managing your financials, should you build an internal finance team or hire a fractional CFO?
In this guide, we’ll break down both options, compare the pros and cons, and help you determine the best financial setup for your growing SaaS company.
What is a Fractional CFO?
A fractional CFO is an experienced finance executive who works with multiple companies on a part-time or contract basis. They can help manage your finance department or assist with specific projects, without the substantial salary commitment of a full-time CFO.
What Does a Fractional CFO Do?
Fractional CFOs typically fall into two categories:
- Solo Consultants – These are independent professionals who focus on specific finance functions, usually for short-term projects (6–12 months).
- Full-Service Fractional CFO Firms – These offer an end-to-end finance function, acting as your CFO, Controller, and Bookkeeper in one. They typically support companies for 12+ months, until they outgrow the need for external finance leadership.
Common responsibilities include:
- Cash flow management
- Financial forecasting and budgeting
- KPIs tracking & development
- Fundraising and investor relations
- Mergers & acquisitions strategy
- Profitability analysis and cost optimization
Why SaaS Companies Choose Fractional CFOs
- Cost-effective: Get high-level expertise without full-time salaries.
- Scalability: Easily adjust financial support as the business grows.
- Fundraising Support: Experienced guidance when pitching to investors.
- Strategic Insights: Get an outsider’s perspective on financial health.
- One-Point Financial Contact: Reduce the need for multiple hires.
What is an In-House Finance Team?
An internal finance team consists of dedicated employees who manage accounting, reporting, and financial strategy in-house.
Common Roles in a SaaS Finance Team
- Bookkeeper: Manages day-to-day transactions and records.
- Controller: Ensures financial accuracy and compliance.
- Full-time CFO: Develops and executes financial strategy.
Advantages of an In-House Finance Team
- Full-time availability: Always present for real-time financial needs.
- Company expertise: Deep knowledge of internal operations.
- Integrated decision-making: Works closely with all departments.
Challenges of an In-House Team
- Expensive: Salaries, benefits, and overhead costs add up.
- Harder to scale: Hiring and training take time.
- Limited outside experience: Internal teams may lack exposure to broader industry trends.
Fractional CFO vs. In-House Finance Team: A Side-by-Side Comparison
| Cost | Starts as low as $2K/mo, up to $30K/mo depending on needs. | CFO: $25K–$50K/mo; Controller: $7.5K–$15K/mo; Bookkeeper: $3K–$4K/mo. Salaries, payroll costs, and benefits not included. |
| Expertise | Broad industry knowledge with benchmarking across multiple companies. | Deep company-specific expertise. |
| Network | Brings a wide network of suppliers, entrepreneurs, and investors. | Limited to internal and past professional connections. |
| Recruiting | Available at short notice. | Hiring process can take months. |
| Scalability | Easily adjusts as the business grows. | Harder to scale up or down quickly. |
| Availability | Part-time, as needed. | Full-time, always available. |
| One-Point Contact | Can handle CFO, Controller, and Bookkeeping roles. | Requires multiple hires. |
When Should a SaaS Company Choose a Fractional CFO?
- You’re in early-stage growth (Pre-seed to Series B).
- You’re raising capital and need expert fundraising support.
- You want strategic financial insights but don’t need a full-time CFO.
- You need flexible financial leadership as you scale.
- You prefer a single financial expert handling all finance functions instead of multiple hires.
When Is an In-House Team the Better Choice?
- You’re approaching $25M+ ARR and need full-time financial leadership.
- Your financial operations are too complex for part-time support.
- You want full control over financial decision-making.
- You need dedicated employees handling specialized financial functions.
What Do These Successful SaaS Founders Have in Common?
They all chose an end-to-end Fractional CFO service.
Will Cannon
Founder & CEO
“Valerio transformed the way we approach finance. He didn’t just organize our numbers—he built a financial roadmap that allowed us to scale with confidence. His financial models and strategic guidance have been instrumental in optimizing profitability, improving forecasting accuracy, and aligning our financial strategy with our business goals. Thanks to his insights, we now have a scalable financial framework that enables us to make smarter decisions, mitigate risks, and drive sustainable growth. Highly recommend him to any SaaS company looking for a fractional CFO who truly understands both the numbers and the bigger picture.”
Justin Chen
Co-founder
“Valerio has been instrumental in bringing financial clarity and stability to our business. His attention to detail, deep understanding of our operations, and honest, strategic insights have given us the confidence to make smarter decisions and invest in growth. I highly recommend him to any business owner looking for clear financial guidance and reliable projections.”
Kevin Rockwood
Co-founder
“Before working with Valerio, we felt like we were flying blind. Financial decisions were based on gut feelings rather than data, and we lacked a clear understanding of our company’s financial health. Since bringing him on, Valerio has built a full financial picture for Pebble, giving us the clarity and confidence to make informed decisions. His financial modeling, business insights, and hands-on approach have been game-changing for our business. We now have a solid financial foundation, proactive planning, and the ability to scale with confidence.”
Final Decision: Which One is Right for You?
Every SaaS business is different. If you’re still early stage (Pre-seed to Series B), consider starting with a fractional CFO to get expert guidance at a lower cost. As your company scales, an in-house team may become necessary to handle the increasing financial complexity.
If you want to scale smartly, optimize profitability, and navigate fundraising with confidence—let’s talk about how Ikiplan can help.