Are you looking for a C-Level financial consultant without the burden of hiring one full-time? If so, it’s time to hire a Fractional CFO. A Fractional CFO, also known as a virtual CFO or outsourced CFO, can be hired on a project basis to help companies achieve many tasks along their strategic path.
These part-time and often remote CFOs have sophisticated industry knowledge and experience, perfectly positioning them to execute high-level strategic plans that propel executives and their teams toward their long-term goals.
Why Hire a Fractional CFO?
CEOs might consider hiring a Fractional CFO as a core team leader who can leverage their experience and connections to manage big projects and help businesses along their path to achieving important milestones, such as:
- Funding rounds
- Acquisitions
- Divestitures
- Key partnerships
- Financial reporting
- Compliance
- Overall financial department oversight
When you hire a Fractional CFO service, you bring in a fresh set of eyes and guidance to help your business grow and run more smoothly. Whether you’re getting ready to raise money, need help managing your finances, or just want support from someone with extensive experience, a Fractional CFO can be a smart, flexible solution.
Are You Ready to Hire a Fractional CFO?
There’s never a bad time to consider hiring a Fractional CFO. However, there are particular times when a part-time finance expert can accelerate a company’s goals more than others.
Business owners, often deeply rooted in the company’s day-to-day processes, can find it difficult to determine when they are ready for this critical financial role. Here are 12 signs that you may be ready to hire a Fractional CFO:
- You require a trusted figurehead over your accounting department to ensure compliance with regulations and act as a strategic financial planning officer.
- You are engaged in mergers or acquisitions, experiencing rapid growth, divesting, or facing a downturn.
- You have lost your Financial Manager or full-time CFO and need an interim CFO to maintain departmental health.
- You have a special project that requires budgeting, forecasting, financing, capital contributions, system implementations, and other time-sensitive tasks.
- You are experiencing unexplained cash flow problems and losses, or need assistance to uncover errors, inefficiencies, or fraud.
- You require financial prowess to attract new investors and manage existing investor relationships.
- You are considering buying a company or divesting an underperforming part of your business.
- A new product launch is imminent, and you need financial expertise to align cash flow with capital-intensive projects.
- You need a leader to communicate performance to investors, board members, partners, shareholders, and external relationships.
- You aim to maximize enterprise value and proactively create, chart, and meet future goals.
- You are contemplating new product development, exploring new market verticals, or expanding into new territories.
- You seek an executive-level manager with a fresh perspective who can provide an objective vantage point.
A Fractional CFO can meaningfully contribute to any of these efforts and more, helping small- and medium-sized companies unlock new value from their enterprise at all stages of growth and development.
Whether you’re working to raise capital, resolve cash flow issues, or require temporary assistance with a specific project, The A Team’s Fractional CFOs provide the impartial guidance and high-level expertise that drives success. A Fractional CFO gives you—the business owner—the support and information you need to make sound business decisions.
How Fractional CFO Consulting Helps Businesses Grow
By hiring a Fractional CFO, businesses gain access to a higher level of financial understanding at a fraction of the cost of hiring a full-time CFO. They can make decisions on behalf of, or in consultation with, their clients to help CEOs achieve short and long-term goals.
10 Ways in Which Fractional CFO Consulting Services Can Be Of Service:
- Improve cash flow
- Launch new products
- Preparing financial reports
- Help businesses expand their reach and grow their customer base by providing insights and advice on tapping into new markets.
- Identify investment and partnership opportunities.
- Leverage a deep understanding of business finance and accounting
- Conduct research on the target market, demographics, competition, and financials
- Build Budgets and Forecasts Across All Business Segments
- Collaborate with individual business divisions or the C-Suite
- Track the effectiveness of business initiatives and planning for the future
- Recommending suitable accounting software and business technologies, including QuickBooks, Expensify, and Sage Intacct, that streamline operations
If you’re exploring how to hire a Fractional CFO, consider the unique impact these professionals can have on every stage of your company’s journey.
Typical Fractional CFO Responsibilities
There are endless possibilities for hiring a Fractional CFO, as their breadth of experience can aid companies in navigating multiple challenges and achieving various goals. As a top-level strategist, they can consult on key business development plans. They can manage relationships with key business stakeholders and spearhead key financing initiatives.
Internally, they can manage day-to-day tasks and conduct wide-scale industry research and analysis on internal processes designed to improve financial transparency and efficiency. They can oversee and revamp finance departments, audit and repair financial statements, regulate liabilities, and improve cash flow.
They can also increase profitability within individual projects to enhance overall project management and performance. So, when you hire a Fractional CFO, you’re not just getting accounting help—you’re securing a financial professional who can influence your company’s direction and trajectory.
Is Hiring Fractional CFO Services Worth The Investment?
Since poor cash flow management is the primary cause of an estimated 82% of business failures, Fractional CFO services can serve as a crucial ally for founding entrepreneurs who may lack the experience to manage their business finances effectively.
These C-level allies have the experience and vision to keep smaller and newer businesses on track. They are also highly skilled at business leadership, management, and communication, which injects a fresh level of professionalism that can meaningfully serve newer CEOs and founders as they navigate a landscape of new challenges.
Since startups tend to have smaller teams that are operating at full capacity, it can be advantageous to hire a CFO who can alleviate some of these responsibilities from the team working on core initiatives.
A Fractional CFO can help ensure that due diligence is given to overall financial management and accounting, allowing business leadership to focus on their strengths and propel the company forward.
How Much Does It Cost to Hire a Fractional CFO?
Costs vary based on the needs of individual companies, tasks, and projects. Some companies might have the demand and budget to hire a Fractional CFO for a demanding workload, while others will require fewer hours per month.
With the right part-time CFO setup, small businesses can secure a critical financial partnership without incurring the unmanageable costs of an internal C-level hire.
Does A Fractional CFO Cost Too Much For Small Or Medium-Sized Businesses?
With the right package in place, small to medium-sized businesses can obtain the CFO support they need without incurring the costs associated with full-time executive positions.
At The A Team, we evaluate your needs and define a clear, cost-effective engagement model. Our flexible options make it easy to hire Fractional CFO services that align with your strategic goals.
How to Find & Hire a Fractional CFO
In order to successfully begin a search for a Fractional CFO, outline your business needs to get a solid grasp on the kinds of attributes and experience levels you require in a trusted financial partner.
Considerations For Hiring A Fractional CFO
1. What are your current needs?
- The size of your business
- The amount of support you’ll need
- How many hours will you want them to work each month
- Specific tasks you’re looking to delegate
- Whether you want a workhorse or a strategic visionary
- How much are you willing to spend
2. Do you need a Controller or a financial strategist (CFO)?
- Here are some tasks a Controller can help with:
- Organize financial books
- Automate budgets using accounting technology (AccountingIQ)
- Prepare financial statements
- Track cash flow and spending
3. Here’s what to expect from a Fractional CFO:
- High-level financial analyses
- Financial funding procurement to power new initiatives
- Guidance on whether a pivot may be required
- Detailed reports on industry trends
- Strategizing around near- and long-term objectives
- Execution on key business KPIs
4. Tailor monthly hours and budget to business needs:
- Determine the amount of support and hours needed from the Fractional CFO
- Define your budget and be clear about how much you are willing to spend
- Consider outsourcing multiple roles or tailoring monthly hours based on specific needs
Final Checklist Before You Hire a Fractional CFO
- Verify Reputation and Recommendations:
- Seek recommendations from trusted sources
- Check reviews on platforms like Clutch or G2, or ask for referrals from the outsourcing company
- Check Alignment with Requirements:
- Confirm the Fractional CFO’s experience
- Assess whether they align with your company’s mission and culture
- Ensure they have a clear understanding of your goals and can provide suitable solutions
- Evaluate Expertise and Solutions:
- Assess the fractional CFO’s expertise and track record
- Verify their ability to address specific challenges and provide valuable insights
- Determine if they bring relevant solutions and strategies to the table
How The A Team’s Fractional CFO Services Can Help
The A Team makes hiring a customized fractional CFO easy. Our versatile team of financial professionals offers flexible, high-impact Fractional CFO services that give you the financial leadership you need, without the cost of a full-time hire.
Discover your customized strategy and define your budgetary requirements with an A Team Consultant, and we’ll match you with the best candidates based on your unique needs. Would you like to learn more? Reach out today to get started.