As a Brazilian subsidiary grows, headquarters reaches a familiar decision point: the accounting firm keeps the books and files the returns, but nobody locally owns the numbers. Who builds the budget, explains the variances, manages cash, deals with the bank and answers the group CFO? The two usual answers are to hire a local finance manager or to engage a fractional CFO. Both can work. This guide compares them and explains when each fits, and when a subsidiary needs both.
What each role does
| Local finance manager (employee) | Fractional CFO (CFO as a Service) | |
|---|---|---|
| Focus | Day-to-day finance: payables, receivables, cash, controls, coordination with the accountant | Direction: planning, reporting quality, decisions, structure, relationship with headquarters and banks |
| Time | Full time, on site | Part time, agreed days or hours per month |
| Seniority | Usually mid-level | Senior, with experience across companies and situations |
| Contract | Employment under the labor code, with payroll charges, benefits and termination costs | Services contract with a firm or professional |
| Continuity | Depends on one person; risk when they leave | Depends on the provider; usually with a team behind |
When a local finance manager fits
- The subsidiary has many daily transactions, several bank accounts and suppliers, and needs someone present every day.
- Processes are already defined and need to be executed and controlled.
- Headquarters provides the strategic direction and the group CFO is close to the Brazilian business.
The cost is a full employment cost, with charges, benefits and the 13th salary (see the cost of an employee in Brazil), and hiring a good manager takes time. A single person also concentrates knowledge and approvals, so controls and backup need attention.
When a fractional CFO fits
- The subsidiary is new or growing and needs structure: budget, reporting, controls, banking, tax planning in coordination with advisers.
- Headquarters is far from the business and needs someone senior in Brazil to translate the local context.
- There is a specific challenge: entering a new segment, preparing for an audit or due diligence, restructuring, the tax reform transition.
- The volume of work does not justify a full-time senior executive.
A fractional CFO does not replace the daily execution. It works best on top of a reliable accounting and finance operations base (see CFO as a Service in Brazil).
The combined model
Many foreign-owned subsidiaries end up with three layers:
- Accounting, tax and payroll by an outsourced firm, with a registered accountant responsible for the books (see outsourced accounting in Brazil).
- Finance operations, payables, receivables and cash, either by a local analyst or manager or outsourced (see outsourced finance operations).
- Financial leadership by a fractional CFO, until the subsidiary’s size justifies a full-time CFO.
The right combination changes as the subsidiary grows; reviewing it once a year is a good habit.
Questions to decide
- How many hours a month of senior financial judgment does the subsidiary really need?
- Who will answer the group CFO’s questions, and how quickly?
- Who approves payments, and who checks the approver?
- What happens if the key person leaves?
- Is the accounting base reliable enough for a CFO to build on?
How Solidy can help
Solidy already serves subsidiaries of multinational companies in Brazil. We offer CFO as a Service together with accounting, tax, payroll and finance operations, so the subsidiary can combine the layers it needs and change the mix as it grows. Explore our CFO as a Service or talk to our consultants.
Related guides
Sources
- Decree-Law 9,295/1946, articles 12 and 25 (accounting work reserved to registered accountants). planalto.gov.br
- Consolidation of Labor Laws (CLT), article 3 (employment relationship). planalto.gov.br
- CFC Resolution 1,590/2020 (contracts for accounting services). cfc.org.br
Information only, updated October 2026. Not a substitute for advice on your specific case.
