How a Fractional CFO can Benefit your Growing Business
A fractional CFO can help you with sound strategic development of your projects and plans and help drive the success of your company
The optimal time to hire a fractional Chief Financial Officer (CFO) depends on your business’s stage of growth.
You may already have a controller-led accounting team who provides you with monthly financial information to help you make informed decisions on the operations of your business and now you’re ready to think about the bigger picture.
This may look like investing in another store location, expanding e-commerce, creating a new product line, considering new markets, implementing new software, or raising capital. You may also be thinking ahead to selling the business or retirement and how to plan for that transition.
A knowledgeable and experienced CFO can help you with sound strategic development of your projects and plans and help drive the success of your company.
How a fractional CFO differs from a CFO
Hiring a full-time CFO may not be feasible for a start-up or small business who are not mature enough to require a full-time CFO.
This is where a fractional, or virtual, CFO comes in. A fractional CFO can provide their knowledge and expertise to help on strategizing varied projects, while offering the flexibility and a cost advantage that a full-time CFO cannot.
How a fractional CFO can benefit your growing business
A fractional CFO will work with you to analyze your business performance and strategize for the future so that you’re in the best financial position possible to stay the course with your plans, and adjust accordingly in the event of any curve balls that may come.
A fractional CFO typically:
- Assists with the development of the strategic direction of the company
- Creates dynamic multi-year budgets based on annual plans that tie to the strategic direction
- Provides and updates scenario-based forecasts with accurate and timely data
- Develops and reports on key performance indicators to identify underperforming areas of the business
- Reports financial results to stakeholders
- Mitigates company risk exposure
- Provides cash forecasts and negotiation for debt and/or equity financing
- Manages the accounting, investor relations, legal and treasury
A fractional CFO allows you to benefit from the services of a CFO and virtual accounting team without committing to the expense of a full-time hire.
Interested in finding out what a fractional CFO partnership would look like? Get in touch.