Why a Fractional CFO makes sense…

There comes a time in the evolution of a small or medium-sized company, where the financial demands of the business start to exceed the skill set of many business owners or leaders. 

Many businesses start out with the services of a bookkeeper and a year-end tax accountant, and these are foundational, critical functions for a business to have. But eventually, as a business starts to scale up, the need for having a financial leader more involved in the day-to-day operations becomes a necessity. 

The challenge when this time comes however, is that it is possible the organization may not have the need, or the financial resources, for a full-time financial leader.

Enter the Fractional CFO.

A Fractional CFO is an individual who steps in to help the business leader with many of the financial and strategic needs of a company, but in a part-time arrangement (hence the term “Fractional”). The significant benefit of this is it gives the organization access to strong financial expertise, but at a cost that is in line with what the company can afford. 

Hiring a Fractional CFO already displays smart financial decision making by the business owner.

So how can a Fractional CFO help?

1.       They help remove the burden for many of the financial tasks and responsibilities that rest on the leader’s plate – freeing them up to focus on what they need to do and the areas where they excel.

2.      They act as a key sounding board/advisor/guide to the business leader on key business issues and decisions providing objective and insightful advice in a confidential manner.

3.      They introduce better financial discipline, structure and expertise into the business ensuring that the business is running as profitably as it can.

4.     Through strong financial analysis, they can help identify new revenue opportunities, cost saving initiatives, and ways for the business to optimize its entire operations. 

5.     They defer the need to commit to a full-time, full-cost resource when the needs of the organization may not require it.   

And these are just some of the benefits that a business can expect to gain from this type of arrangement.

Bringing on a Fractional CFO really can enable an organization to quickly scale up to the next level, and provide the right balance for a business leader to have peace of mind that while they work to grow the business, the finances are being expertly handled.