Contract vs Permanent vs Fractional Finance Hires: How to know what your business needs

At a certain stage of growth, most business leaders reach the same conclusion:

“We need more finance support - but I’m not sure what kind.”

You might be feeling the pressure in different ways. Cash flow needs closer monitoring. Reporting is harder to interpret. Decisions feel riskier than they used to. Or maybe the finance team is doing their best, but you’re still being pulled into the numbers more than you should be.

You might not be asking for a job title yet.

But you might asking things like...

• “Do I need someone senior, or am I jumping the gun?”
• “Is this a full-time problem, or do I just need part-time support?”
• “Should I start with a Finance Director, or would someone more junior actually fix this?”
• “I know we need help - but what level of help does the business actually need right now?”

These are the real questions business leaders deal with and it’s the type of situation, we, at Sowena are here to support you with.

We’ve written this article to help business owners, CFOs and senior leaders clearly understand:

• The difference between contract, permanent and fractional finance hires
• What each option is actually best used for
• When it makes sense to choose one over the others

No assumptions. No jargon. Just practical guidance to help you make the right call for your business right now.

Why many businesses struggle to choose the right finance hire

One of the biggest challenges is that “needing finance support” is not a specific problem.

On the surface, it can look like:

• Late or unclear reporting
• Constant cash flow stress
• Difficulty forecasting or planning
• A sense that decisions are being made without enough financial confidence

But underneath, the cause might be very different:

• A short-term capacity issue
• A lack of senior financial insight
• An unclear finance structure
• Or simply growth outpacing the current setup

This is why you shouldn’t assume which job title you need, this can often lead to frustration. The title doesn’t solve the problem if the type of support isn’t right.

Understanding the difference between contract, permanent and fractional finance hires gives you a clearer framework for making that decision.

What Is the Difference Between Contract, Permanent and Fractional Finance Hires?

Before deciding what your business needs, it’s important to clearly understand what each option actually means in practice.

What Is a Permanent Finance Hire?

A permanent finance hire is a full-time employee who joins your business on an ongoing basis. This could include roles such as:

• Finance Manager
• Financial Controller
• Head of Finance
• Chief Financial Officer (CFO)

Permanent finance hires are embedded in the business. They’re responsible for day-to-day financial operations, internal processes, reporting, and often managing other finance team members.

They work best when the workload is consistent, ongoing and clearly defined, and when the business is ready to invest in long-term capability.

How to figure out what level of finance support you actually need

Before you start thinking about titles, hours, or contracts, the first question is simple:

“What’s the real problem I’m trying to solve with finance support?”

Most business leaders fall into one of three scenarios:

1. You Need Help With Execution and Day-to-Day Work

Signs this is your situation:

• The finance team is stretched, or you don’t have a team at all
• Month-end reports are late, incomplete, or confusing
• You’re spending too much time on bookkeeping or reconciliations

If this sounds familiar, what you really need is someone who can do the work reliably, either temporarily or permanently.

Think of this as “get the house in order” support. You’re not looking for strategic advice - you just need things done properly and on time.

2. You Need Decision Support and Strategic Insight

Signs this is your situation:

• You understand the numbers, but you’re not confident making big decisions
• Cash flow feels unpredictable, even if revenue is growing
• Forecasts and budgets feel like guesswork
• You’re preparing for funding, scaling, or major investments

Here, what you need is someone senior who can think with you, guide decisions, and help the business grow without you being the bottleneck.

This is where a fractional CFO or Finance Director is often the smartest first step. You get experience and insight without paying for a full-time executive before it’s needed.

3. You Need a Blend of Both

Sometimes, the problem is a mix of execution and strategy:

• You’re growing fast, and the team can’t keep up with both reporting and forward-looking decisions
• You don’t have clarity on cash flow or profitability
• You know there are gaps in the finance function, but you’re not sure where to start

In this case, many businesses start with short-term or part-time support:

• A contract hire for day-to-day tasks
• A fractional CFO for high-level oversight
• Or a combination of both to get structure and insight quickly

This approach lets you stabilise the finance function while also getting senior guidance - without overcommitting.

Key Takeaway

The first step isn’t to decide on a title.
It’s to diagnose the type of support the business actually needs:

• Execution-focused? → Junior, contract, or permanent hire
• Decision-focused? → Senior, fractional support
• Both? → Mix and match to stabilise now and scale later

Once you’re clear on the level of support, the next step is deciding whether that help should be contract, permanent, or fractional - which is what we’ll cover next.

Understanding contract, permanent, and fractional finance hires

Once you’ve figured out the level of support your business needs, the next question is how to get it. This is where contract, permanent, and fractional finance hires come into play. Each has different strengths, costs, and ideal situations.

1. Do I need to hire a finance contractor?

What it is:
A contract finance hire is someone brought in for a fixed period or project, often full-time but temporary. They focus on delivery rather than long-term strategy.

When to consider a contract hire:

• You need extra hands to cover a temporary workload spike
• Someone is leaving, on leave, or the team is short-staffed
• You have a specific project like an audit, system implementation, or month-end clean-up
• You want quick results without a long-term commitment

Best suited for:

• Businesses where execution is the main problem
• Teams that need capacity, not leadership

Key advantage: Fast, flexible, and solution-focused. You pay for results, not long-term commitment.

2. Do I need a permanent finance employee?

What it is:
A permanent finance hire is a full-time employee who becomes part of your business long-term. Typical roles include Finance Manager, Financial Controller, or even a full-time CFO.

When to consider a permanent hire:

• Your finance workload is ongoing and consistent
• You need someone to own processes, reporting, and team management
• The role will evolve as your business grows
• You’re ready to invest in long-term capability

Best suited for:

• Businesses with stable growth and recurring finance needs
• Teams that need structure, oversight, and continuity

Key advantage: Long-term ownership, continuity, and embedding financial expertise in your organisation.

3. Do I need a fractional CFO?

What it is:
A fractional finance hire is a part-time senior finance professional, often a CFO or Finance Director, who provides strategic guidance and oversight without being a full-time employee.

When to consider a fractional hire:

• You need decision support and strategic insight
• Cash flow, forecasting, or financial planning feels unclear
• You’re preparing for funding, scaling, or major investment
• You don’t need full-time executive hours, but need senior expertise

Best suited for:

• Businesses where the CEO or leadership team is still making most financial decisions
• Teams that need guidance, mentorship, and confidence in financial planning

Key advantage: Senior experience and strategic insight without the full-time salary. It’s leverage for growth, not just execution.

How to Choose Between Them

Think back to the scenarios we outlined:

Most growing businesses actually use a combination over time:

1. Start with fractional support to clarify what’s needed
2. Use a contract hire for immediate execution gaps
3. Hire permanently once the role and workload are clear

How to decide which type of finance hire is right for your business

Now that you understand the differences between contract, permanent, and fractional finance hires, the question is: how do you actually choose?

Of course, we’re always here to help and advise, but usually the answer comes down to three things: level of support, duration of need, and strategic vs execution focus. 

Here’s a step-by-step approach.

Step 1: Clarify the Problem You’re Trying to Solve

Before looking at titles, ask yourself:

• Is the issue mainly execution (getting reports, managing cash, clearing backlog)?
• Or is it strategic insight (forecasting, scenario planning, funding decisions)?
• Or is it a mix of both?

Tip: Write down the key pain points your team or business is experiencing. This makes it much easier to match the hire to the real need, not just the title you think you “should” hire. We see this happen a lot and it’s usually a very expensive and timely mistake.

Step 2: Determine If the Need Is Temporary or Ongoing

• Temporary → Contract or fractional support often makes sense.
• Ongoing / consistent → Permanent hire may be more cost-effective.

Example:

• You’re short-staffed for three months while your Finance Manager is on leave → contract hire
• You want long-term ownership of reporting and compliance → permanent hire
• You want strategic guidance 2 days a week while scaling → fractional hire

Step 3: Decide on the Level of Expertise Needed

Ask: Do you need someone who can do the work or guide the work?

• Do the work (execution) → junior or mid-level contractor, or permanent hire
• Guide the work (strategy / insight) → fractional CFO or Finance Director

Tip: It’s often better to start with strategic guidance first if you’re unsure, then a fractional hire can clarify what roles and levels you truly need before you hire permanently.

Step 4: Consider Budget and Cost Flexibility

• Contract → Higher hourly/day rate, but short-term and flexible
• Permanent → Predictable ongoing cost, but long-term commitment
• Fractional → Senior expertise without full-time cost, scalable based on need

Match your decision to what your business can realistically invest right now, without overcommitting.

Step 5: Combine Options if Needed

Many growing businesses don’t stick to just one option. A common approach is:

1. Start with fractional leadership to get strategic clarity
2. Bring in a contract hire to handle immediate execution gaps
3. Move to a permanent hire once the role and workload are fully defined

This phased approach reduces risk, ensures your finance function is effective immediately, and sets you up for long-term growth.

Key Takeaways

• Don’t hire based on titles, it’s important to hire based on the type of support your business actually needs – we’re always available to audit your business operations and identify any gaps in your finance function, which will help to define the support you require.
• Match the hire to level (junior vs senior), duration (temporary vs permanent), and focus (execution vs strategy).
• Consider mixing options: fractional + contract + permanent over time is often the most effective solution.

Final thought: Start with clarity, not a job title

Knowing you need more finance support is one thing. Knowing what kind of support your business actually needs is another.

At Sowena, we don’t start with CVs or job titles. We start by helping businesses understand the gaps in their finance function and what level of support will genuinely make a difference - whether that’s contract, permanent, fractional, or a combination.

We take a consultative approach, guiding you through the thinking before any hiring decisions are made. That might mean clarifying whether you need execution support, senior insight, or help designing the right finance structure before committing to a role.

From early advice through to the full hiring process, we support you end-to-end, so when you do bring someone in, it’s the right fit for where your business is now.