If you are looking for financial leadership for your company but don’t want to incur the expense of a full-time salaried CFO, a Fractional CFO may be an ideal solution. You can get the expertise you need, and a Fractional CFO costs a lot less!
What is a Fractional CFO?
A CFO is in charge of building the financial strategy of a company and helping the company build and achieve its long-term vision. A Fractional CFO can be brought in to work in a part-time position for a company that needs financial leadership but doesn’t have the workload to justify a full-time CFO.
A Fractional CFO is an experienced and skilled finance officer who works with multiple companies simultaneously. As a result, companies can work with a singular CFO without paying the salary and benefits of a traditional CFO. Because the Fractional CFO costs and time are split between multiple companies, the Fractional CFO cost is usually lower. Plus, the Fractional CFO comes in with extensive experience that spans multiple companies and industries.
A Fractional CFO is excellent at communication and adapts easily to meet the needs of the client company. This top-tier C-suite finance leader:
- Oversees finance reports and accurate bookkeeping processes
- Manages cash flow and predicts potential financial challenges
- Tracks accounts payable, accounts receivable and current inventory
- Oversees funding rounds and guides the process of finding investors
- Looks at industry trends to help create financial forecasts and strategies
- Reinvents processes as needed to improve compliance and efficiency
The CFO plays a critical role in helping a growing company earn the largest economic return on its investment. A CFO will negotiate with suppliers or vendors and optimize the supply chain for a more cost-effective process.
For smaller and mid-sized companies, these things can be accomplished on a budget at a lower Fractional CFO cost.
How Much Does a Fractional CFO cost?
The Fractional CFO cost largely depends on the needs of the individual company. Some companies will have demanding workloads, while others will only need 15 – 20 hours a month. The size of the business and the state of the finance department are also important considerations. Fractional CFOs can cost anywhere from $2,500 per month to $10,000 per month, depending on how comprehensive the services are, the size and complexity of the client, as well as the proficiency of Client staff.
Though it depends on company size, city and industry, the average salary of a CFO is much higher than the Fractional CFO cost. Salary.com reports the average CFO salary to be $396,633 with a range of $215,000 – $602,000 nationally. That means that even the highest Fractional CFO costs are likely going to cost less than half of the national average for a full-time 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 get the CFO support they need without paying for full-time executive positions.
At The A Team, we evaluate our clients’ needs and budgets and advise what level of Fractional CFO services will fit so that the Fractional CFO cost does not exceed the agreed upon budget.
Why is a Fractional CFO Less Expensive Than a Full-Time CFO?
One of the best things about a Fractional CFO is that they make high level services available to small and medium sized businesses who need their expertise but don’t have enough high-level work to keep them busy 40 hours each week. With a Fractional CFO, you only pay the cost of the high-ranking executive for the time needed to get the job done. So, the Fractional CFO cost is much more manageable than a 40-hour per weeks employee.
How much will my Fractional CFO be?
Each company’s needs and budget are unique. The A Team will work with you to establish a service level commensurate with your company’s needs and budget so that the Fractional CFO cost is manageable. You might be surprised at how affordable the Fractional CFO cost is, especially compared to a salaried employee.
To find out more how a Fractional CFO can add great value to your business, contact A Team to discuss Fractional CFO costs and services.
