What Does a Fractional CFO Do?
Oct 21, 2022When it comes to financial strategy, business owners need more than just a bookkeeper or accountant. They need someone who can provide insights and guidance based on the financial metrics of the business. That's where fractional CFOs come in. A fractional CFO is an executive-level finance professional who provides strategic guidance and accountability for the financial success of a business. If you're looking for help with financial strategy, fractional CFOs are a great option!
They are a great option if the financial side of your business is a known blind spot. They also serve the business on a fractional basis, meaning they serve multiple clients and don't require a full-time salary. Most fractional CFOs are hired as contractors, simplifying the hiring process for both parties.
When it comes to financial strategy, fractional CFOs are experts. They understand the key drivers of financial success and can help business owners create a roadmap for achieving their goals. They bring with them the experience of working with multiple clients and seeing the successes and failures of multiple business owners. This means more mistakes avoided for you.
In addition to providing strategic guidance, fractional CFOs also offer executive-level accountability. This means they're not afraid to have tough conversations with business owners about financial decisions. Sometimes it takes the perspective of an impartial logical party to provide clarity on a business decision.
If you're considering hiring a fractional CFO, there are a few things you should keep in mind. First, fractional CFOs typically work with businesses that have complex financial needs. This means they're a good fit for businesses that are growing quickly or have multiple revenue streams. Many fractional CFOs provide services for a recurring monthly fee or on a project basis. This helps keep the focus on outcomes and results as opposed to the traditional hourly billing you experience with an accounting firm.
In order to be successful with a fractional CFO, you want to have strong bookkeeping in place and have a trustworthy tax professional. Some practices, like Fitnancial Solutions, provide this under one roof. If your CFO does not, we recommend making sure that your professionals align on decisions and approach and they are all well-informed of your goals as the business owner, both personal and professional.
A fractional CFO can be a strong hire to fill many gaps in your business. While often overlooked, strengthening the financial side of your business can result in long-term sustainability and growth that creates a massive return on investment.
