Agency finance is deceptively simple until it isn't. A fractional CFO installs the utilisation and profitability reporting agency founders always wish they had, and rebuilds pricing and retainer scoping to protect margin.
Metrics that matter
- Retainer utilisation and scope creep %
- Effective hourly rate by client
- Gross margin per client and per service line
- Employee utilisation rate
- Revenue per employee
- New business win rate and CAC
Common finance challenges
- Retainer under-scoping and margin erosion
- Passthrough (media, production) revenue treatment
- Freelance vs. FTE cost modelling
- Compensation and profit-share design
- Client concentration risk
What to look for in a specialist CFO
- Agency operator or agency-CFO seat experience
- Understanding of media buying passthroughs (AOR / independent)
- Practice management tool comfort (Harvest, Float, Productive)
Frequently asked questions
- Should we bill on retainer or hourly?
- It depends on scope predictability. A fractional CFO can model the margin difference and design a hybrid that protects downside.
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