Welcome back to the show, where we explore the realities behind leadership, finance, and business growth. Today’s question sounds simple on the surface:
What is the cost of a UK CFO?
But as with most things in business, the real answer goes far beyond a single salary number. Because the true cost of a CFO isn’t just what you pay them. It’s what they deliver, what they enable, and what they potentially save—or cost—you.
Let’s start with the headline figure.
In the UK, a full-time Chief Financial Officer typically earns between £120,000 and £250,000 per year. In larger organisations or London-based firms, that can rise to £300,000 or more. Add bonuses, pension contributions, National Insurance, healthcare, equity, and other benefits, and the total employment cost can easily exceed £180,000 to £350,000 annually.
And that’s before you factor in recruitment fees, which often run at 20–30% of first-year salary. So a £200,000 CFO could come with a £40,000 to £60,000 recruiter bill before they’ve even started.
So, on paper, a CFO is one of the most expensive hires a growing business will ever make.
But here’s where things get interesting.
Because cost without context is meaningless.
A great CFO does far more than oversee accounting. They shape strategy. They manage risk. They guide cash flow. They help raise capital. They challenge assumptions. They turn numbers into decisions.
In other words, a strong CFO should create value far beyond their salary.
Let’s talk about what that value can look like.
A CFO who improves cash flow management might prevent a funding crisis. One who structures financing effectively could save hundreds of thousands in interest.
However—and this is critical—not every business actually needs a full-time CFO.
Many UK companies hire too early.
If your business is turning over £2m to £10m, you may not need a 5-day-a-week CFO. What you usually need is:
• Accurate financial reporting
• Strong cash flow forecasting
• Budgeting and scenario planning
• Strategic guidance when making big decisions
You don’t necessarily need someone in the building every day to achieve that.
This is where fractional CFOs or part-time CFO services come in.
A fractional CFO typically costs between £1,500 and £6,000 per month depending on experience and days required. Annually, that’s roughly £18,000 to £72,000.
Compare that to £200,000+ for a full-time hire.
For many growing businesses, fractional CFOs provide 70–80% of the strategic value at 20–30% of the cost.
That difference can be transformational.
There’s also another hidden cost to consider: the cost of getting it wrong.
Hiring the wrong CFO is expensive. Severance packages, recruitment fees, cultural damage, lost momentum, and strategic missteps all compound quickly.
A cheaper CFO who lacks experience in your growth stage can cost more than an expensive one who knows exactly what they’re doing.
If a founder is spending 30% of their time worrying about cash, producing spreadsheets, and second-guessing numbers, that’s time not spent on sales, product, or growth.
A CFO who frees the founder to focus on building the business often pays for themselves.
So what’s the real cost of a UK CFO?
The financial cost might range from £20,000 a year for fractional support to £350,000+ for a top-tier full-time executive.
But the real cost is strategic.
Visit our website for more details https://www.fdcapital.co.uk/fractional-cfo-cost-in-the-uk/