Small businesses often reach a stage where more targeted financial guidance can make a difference. Yet taking on a full-time chief financial officer (CFO) may not fit the budget or operational scale of many smaller firms. This is where a fractional CFO can help. A fractional CFO works with you on a part-time or project basis. You gain the benefits of strategic financial oversight, while keeping costs under control. We have seen how this approach supports better decision-making, forward planning and stable cashflow. In this blog we discover what the role of a fractional CFO involves and how they support growth for small businesses.
What is a fractional CFO?
A fractional CFO is an experienced finance professional who assists businesses without committing to a permanent, full-time post. This role goes beyond basic bookkeeping or compliance work. A fractional CFO helps you set financial goals and create robust reporting structures, while keeping an eye on wider economic factors. In many cases, they work remotely, which offers flexibility and reduces overheads. For smaller organisations, this arrangement can fill a gap in financial leadership that might otherwise remain unaddressed.
The 2025/26 tax year in focus
As businesses plan for the 2025/26 tax year, they face new and continuing obligations. In the UK, the personal allowance remains at £12,570. Higher earners still encounter a gradual reduction in personal allowance once their income exceeds £100,000. Meanwhile, corporation tax remains at 25% on profits above £250,000, with lower rates for smaller profits. These figures can affect how you structure your remuneration and plan dividends, especially if you are a director-shareholder in a family-run business. A fractional CFO can help you weigh up these decisions and avoid unexpected tax bills.
National insurance thresholds have stayed near the same level as the previous year, which influences hiring costs and overall payroll planning. Our experience shows that small businesses can benefit from regular reviews of these thresholds to keep on top of liabilities. A fractional CFO can support you by adjusting payroll forecasts and setting aside funds to cover bills that may land in the new tax year.
Strategic guidance without full-time costs
Small businesses can quickly grow in complexity once they pass the initial startup stages. Owners often juggle multiple tasks, leaving less time to focus on financial strategy. Full-time CFOs are valuable, yet not every firm requires that level of commitment. A fractional CFO provides strategic input precisely when you need it. This includes planning around the 2025/26 tax year, preparing for year end and monitoring cashflow to manage ongoing expenses.
This guidance can influence your long-term direction. You can plan expansions, introduce new products and gauge the right time to invest in additional staff. By aligning your revenue forecasts with up-to-date budgeting, you gain clarity on what your business can handle. A fractional CFO ensures every move is backed up by sound financial advice, which can lower risk in a constantly changing economy.
The role of a fractional CFO: Spotting risks and opportunities
Small businesses may miss important red flags if finances are rushed or overlooked. Cashflow shortfalls, hidden expenses or overlooked tax breaks can cause setbacks. A fractional CFO can help you avoid these problems and highlight opportunities for savings or growth. For example, you may find that the upcoming 2025/26 tax allowances offer a chance to adjust your payroll system. Spotting that early could save you money and give you time to prepare.
Our approach focuses on practical steps. We might implement monthly or quarterly reporting to track margins. We might identify areas where overheads can be reduced. We believe that consistent checks highlight patterns that matter, giving you time to correct your course if needed. This kind of attention means your business can adapt in a steady way, even when circumstances shift.
Support with compliance and filings
We understand that compliance can be a challenge, especially for family-run businesses with limited in-house resources. Submissions to HMRC, Companies House or other agencies require accuracy and timeliness. A fractional CFO guides you through deadlines, so you know what must be filed and when. This includes corporation tax returns, VAT returns and payroll reporting. Late or inaccurate filings can lead to penalties, which can stress your finances.
If you are setting up or restructuring a business, you may need to update official records. You can learn more about filing procedures on the Companies House page. We can support you to stay on top of requirements, which can free up more time for running your core operations.
Cashflow management and forecasting
A steady stream of cashflow fuels growth, yet small businesses often face seasonal fluctuations, supplier changes or client payment delays. A fractional CFO keeps a close eye on inflows and outflows. We can set up forecasting models that highlight slow periods or potential gaps. You can then arrange finance or adjust terms with suppliers.
Sound forecasting also helps with major spending decisions. For instance, when you decide to purchase new equipment or upgrade your premises, a fractional CFO can estimate the effect on your bottom line. You can plan these moves with a clear view of how they may affect your daily operations.
Additional help when you need it
Your finance function’s workload can spike at certain times of the year. The 2025/26 tax season brings deadlines for self assessment returns, corporation tax payments and more. A fractional CFO can step in to ensure reports and audits stay on schedule. We can also assist when you apply for bank loans or grants, ensuring your financial statements are well organised and accurate.
If you decide to pivot your services or expand your product line, a fractional CFO’s insights can guide your next steps. You gain a picture of how decisions may affect your profit margins, overheads and cashflow, all without the cost of hiring a full-time executive.
How we can help
We offer support through fractional CFO services for small businesses. Our team has experience working with family-run firms across Northern Ireland and the UK. We care about the wellbeing of our clients and we tailor solutions to fit your needs. If you would like to review your accounting services more broadly, take a look at our accountancy services.
Take the next step
We appreciate how important reliable financial guidance is to small businesses. If you want to explore the benefits of engaging a fractional CFO, we would be happy to discuss the support you need. By choosing the part-time route, you can access skilled advice when it suits you.
We hope that you have discovered more about the role of a fractional CFO in small-business success. Contact us to find out how a fractional CFO can help you plan for 2025, reduce stress and set a strong course. We would love to learn about your business and offer guidance for a steady financial future.
