What is a Fractional CFO?

A Fractional CFO is a senior financial expert who works with your business on a flexible basis, providing high-level financial strategy, oversight and board-level input. They offer the benefits of a full-time CFO without the permanent cost.

What does a Fractional CFO do for a business?

They lead financial strategy, produce and interpret management accounts, build financial models, manage risk, guide funding decisions, support acquisitions or exits, and ensure your board has timely, accurate financial insight.

How does a Fractional CFO differ from a Full-Time CFO?

Fractional CFOs offer all the skills and strategic input of a full-time CFO but work with your business on a fractional basis — typically a few days per month. You get the benefit of experienced financial oversight, planning, and reporting without the overhead of a permanent hire.

Why would an SME need a Fractional CFO?

Many SMEs reach a stage where financial decisions become more complex — but aren’t yet ready for a full-time CFO. A Fractional CFO gives you the expertise to make informed decisions, plan ahead, secure funding, improve profitability, and avoid surprises. It's a cost-effective way to build a stronger, more resilient business. To dive deeper, why not read our blog Why every SME business should have a CFO.

What does a Fractional CFO do day-to-day?

Typical responsibilities include: producing and interpreting management accounts, building financial forecasts, managing cash flow, budgeting, advising on funding, supporting board meetings, training your finance team, and helping you make financially sound business decisions.

Can a Fractional CFO also act as a Non-Executive Director?

Yes. At Secantor, many of our CFOs also act as Non-Executive Directors (NEDs). Our CFOs are commercially experienced, strategically minded, and have strong corporate governance expertise — making them well placed to contribute at board level.

What size of business uses a Fractional CFO?

Fractional CFOs are ideal for SMEs with growing complexity but without the need for a full-time finance leader. At Secantor, we typically support businesses with £3m–£50m turnover, though some clients are smaller and others larger.

How is a CFO different from a Finance Director?

The roles often overlap, and the title is often used interchangeably. In very large organisations, a Finance Director typically focuses on internal financial control and reporting, while a CFO adds a layer of strategic foresight, often acting as a key advisor to the CEO or owner and supporting investor relationships. However, in most SMEs, one individual covers all aspects of strategic financial leadership, so the role is in effect the same.

How much does a Fractional CFO cost?

Fees vary depending on the time commitment and complexity. Our Fractional CFOs typically cost from £1,200 +VAT per month. We tailor each engagement to match your business stage, budget and goals. Contact us for a personalised proposal.

Do I still need an accountant if I hire a Fractional CFO?

Yes — because their roles are different. An accountant operates outside your business and focuses on compliance, tax, and reporting. A CFO works inside your business to provide strategic financial leadership. The two roles complement each other. Your CFO will often manage the relationship with your external accountant and ensure their advice is implemented effectively.

Is a Fractional CFO suitable for my business size?

We typically work with UK SMEs with £3m–£50m turnover and 30–250 employees — but we also support ambitious smaller businesses preparing for growth or investment, and we serve larger companies too. If you’re experiencing growing complexity in your finances or strategic decisions, a CFO will help bring clarity and control.

Can a Fractional CFO help with fundraising or investment?

Yes — a CFO plays a crucial role in preparing forecasts, engaging with investors or banks, presenting financial strategy, and structuring funding rounds. They bring credibility and clarity to the process.

How quickly can a Fractional CFO start?

We can often place a vetted, accredited CFO in your business within a matter of days. Every Secantor CFO is carefully selected and personally accredited to ensure they not only have the right technical expertise, but also the commercial experience and interpersonal skills to fit seamlessly into your team.

What makes Secantor different?

Our CFOs are personally accredited by Secantor Directors and chosen for their blend of technical expertise, commercial judgement and interpersonal skills. Our team have held senior roles in both large corporates and growing SMEs — and every engagement is backed by Secantor’s oversight to guarantee quality and results.

How do I hire a Fractional CFO?

The easiest way is to book a call with one of our experienced advisors. We’ll learn more about your business, explain how we work, and scope your requirements. Following a visit to meet you personally, we develop an in-depth understanding of your business needs, allowing us to match you with a carefully selected CFO based on your requirements, culture, and priorities. No obligation — just a conversation to see if we’re a good fit for you.

Gross Profit Margin & Markup Calculator

Cost price (£)

Selling price (£)

This calculator is for illustration only. It does not replace professional financial advice. For support improving gross profit, pricing strategy or management reporting, speak to an experienced Finance Director or CFO.

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What Does This Calculator Do?

This calculator helps you calculate three important profitability measures:

Gross profit — the amount left after deducting direct costs from selling price.

Gross profit margin — gross profit expressed as a percentage of selling price.

Markup — gross profit expressed as a percentage of cost.

These figures are often confused, but they are not the same. Understanding the difference is essential when setting prices, reviewing profitability or improving business performance. If you are unfamiliar with the concept of gross profit, you may find our guide to What Is Gross Profit and Why Is It Important In Business? helpful.

Margin vs Markup: What Is The Difference?

Margin is based on the selling price. Markup is based on the cost price. For example, if something costs £100 and is sold for £125:

The markup is 25%
The gross profit margin is 20%

Many businesses mistakenly apply a markup percentage thinking it will produce the same margin percentage. This can lead to lower profits than expected. Using a calculator such as this can help ensure pricing decisions support the level of profitability the business requires. For a deeper discussion on pricing and margin management, read Pricing For Profit: How SMEs Improve Gross Margin Profit.

Want To Learn More About Margin Vs Markup?

Many business owners use the terms margin and markup interchangeably, but they produce very different results when setting prices and calculating profitability. A common mistake is to apply a 30% markup expecting to achieve a 30% gross profit margin. In reality, the resulting margin will be significantly lower.

If you'd like a more detailed explanation, examples and practical guidance, read our guide to Margin vs Markup: What's The Difference and Why Does it Matter?

Why Gross Profit Margin Matters

Gross profit margin is one of the most important measures of business performance. It shows how much of each pound of revenue is left after direct costs have been deducted. A stronger gross profit margin can help a business:

improve profitability
generate more cash
absorb overhead costs more easily
invest in growth
improve business value
make better pricing decisions

For many SMEs, a small improvement in gross margin can have a significant impact on profit. For example, a business generating £5 million of annual revenue could increase gross profit by £250,000 by improving margin by just 5%.

This is one reason why many businesses invest in stronger financial reporting through Management Accounts, enabling them to monitor margin performance throughout the year rather than waiting for annual accounts.

How To Improve Gross Profit Margin

There are several ways to improve gross profit margin, including:

reviewing pricing
reducing direct costs
improving supplier terms
reducing waste or rework
improving labour efficiency
focusing on higher-margin products or services
improving project costing
strengthening management reporting

Many business owners are surprised by how much additional profit can be generated through relatively small improvements in pricing, margin management and operational efficiency.

For a more detailed discussion, you may find our 10 Ways To Increase The Profitability Of Your Business Guide helpful.

When Should An SME Review Gross Profit Margin?

An SME should review gross profit margin regularly, not just at year-end.

Gross margin should normally be reviewed:

monthly as part of management accounts
when supplier costs change
when labour costs increase
before quoting for significant projects
when introducing new products or services
when profitability is lower than expected
when preparing forecasts and budgets

Businesses that regularly review gross margin tend to make better commercial decisions and identify issues earlier. You can learn more about using financial information effectively in How To Use Management Accounts Effectively.

How Secantor Can Help

Understanding gross profit is only the first step. The real value comes from using financial information to improve decision-making, profitability and cash generation.

Our experienced Fractional Finance Directors help SME businesses improve pricing, strengthen management reporting, monitor profitability and develop the financial information needed to support growth.

For businesses requiring more strategic support, our Fractional CFO services help directors improve forecasting, business planning, performance management and long-term financial strategy.

Many businesses also benefit from combining margin analysis with stronger financial forecasting and management reporting to create a clearer picture of future performance.

Frequently Asked Questions: Gross Profit Margin

Gross profit margin is gross profit expressed as a percentage of selling price. It shows how much of each pound of revenue remains after direct costs have been deducted.

Gross profit margin is calculated by dividing gross profit by revenue and multiplying by 100.

Markup is the difference between cost price and selling price expressed as a percentage of cost.

Margin is calculated as a percentage of selling price, while markup is calculated as a percentage of cost price.

No. Markup and margin are different calculations and often create confusion when setting prices.

Markup is calculated as a percentage of cost, while margin is calculated as a percentage of selling price. As a result, a 30% markup does not produce a 30% margin.

For a full explanation and examples, see our guide to Margin vs Markup: What's The Difference and Why Does it Matter?

A good gross profit margin depends on the industry, business model and overhead structure. The key consideration is whether the margin generates sufficient profit after covering overhead costs.

Gross profit margin may fall because of rising supplier costs, labour cost increases, discounting, inefficient operations, poor project costing or changes in product mix.

Businesses typically improve gross margin through pricing reviews, cost reduction, operational improvements, supplier negotiations and better management information.

Gross profit is one of the most important indicators of business performance because it directly influences profitability, cash flow and business value.

Most businesses should understand both. Markup is useful when adding a percentage to cost, but gross margin is usually more useful for understanding profitability.

Speak To Secantor About Fractional CFO Support

If your business would benefit from stronger strategic financial leadership, improved forecasting, better commercial insight or support with growth and funding, we would be delighted to speak with you.

Our experienced Fractional CFOs work with SMEs across the UK, helping businesses strengthen financial performance, improve decision-making and build long-term value.

To discuss how we can support your business, please contact Secantor Business Services.

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Profitability is the heartbeat of any successful business. Ready to take your business to the next level? Download your free guide and discover 10 powerful strategies to increase your business profits today!

Inside this guide, you'll discover how to:

✓ Create a budget that works for you

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Our Services

We help you make strategic decisions

Secantor provides expert financial and management support to SME owners and directors. Our commercially experienced team covers the following roles.

Non-Executive Director

Strategic support and experience to guide you as you make decisions and build value in your business. A NED acts as a sounding board for your ideas, improves business performance, holds you and your team to account and helps you achieve a successful exit.

✓ Strategic business planning

✓ Support strategic decision-making

✓ Set business goals and objectives

✓ Rejuvenate struggling businesses

✓ Manage growth effectively

✓ Implement best practice

✓ Sounding board for your ideas

✓ Set and communicate vision

✓ Hold you & your team to account

✓ Build an effective management team

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Finance Director

Expert financial leadership from a commercially experienced, qualified accountant. An FD will create financial plans, report your monthly performance against budget and interpret the figures to help you make sound decisions & improve profitability.

✓ Expert financial advice

✓ Interpret financial results a support decisions

✓ Develop & oversee your finance team

✓ Improve profitability & control costs

✓ Prepare management accounts

✓ Create 3-5 year financial plan

✓ Budget setting

✓ Source appropriate funding

✓ Cashflow forecasting & management

✓ Prepare reports & commentaries for your bank

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Operations Director

Strategic operational leadership to transform your people and business processes to improve efficiency and profitability. An Operations Director helps you build a strong management team, delegate operational actions and improve business performance.

✓ Develop strength in your management team

✓ Establish key performance indicators (KPIs)

✓ Hold people accountable to achieve results

✓ Process and quality improvement

✓ Help you delegate effectively

✓ Create clear job descriptions

✓ Identify and recruit talent

✓ Implement robust operational systems

✓ Establish clear goals and expectations

✓ Enable your team to achieve excellence

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Gross Profit Margin, Markup & Pricing Calculator