What Are Outsourced CFO Services?
An Outsourced CFO or a Fractional CFO, is an external financial expert hired on a part-time basis to address specific business needs. Fractional CFO services help businesses address high-level accounting and finance needs without the significant overhead of a full-time hire.
Fractional CFO services enable businesses to access high-level financial professionals without incurring the of salary, benefits, and bonuses, typical of a C-suite level CFO. Outsourcing this talent allows businesses to hire top-level professionals without spending significant time and money on recruitment and onboarding.
Fractional CFO’s can be hired on an ongoing, interim or project basis, and can help companies perform a wide range of tasks, such as:
- Developing financial forecasts and reports
- Creating a long-term financial strategy
- Navigating compliance and regulatory issues
- Analyzing industry trends and delivering insights on customer segmentation
Why Consider Fractional CFO Services?
There’s a long list of reasons why entrepreneurs and CEOs might consider Fractional CFO services:
- Their business is experiencing growth and they no longer have the bandwidth to manage balance sheets, income statements, and financial reports with the staff on hand.
- They’ve just brought on new investment and require an expert with specific experience managing capital allocation and performance indicators.
- They aren’t growing as fast as they’d like and need someone who can conduct a deep dive into market and customer segmentation and deliver reports on industry trends.
- They want to improve their bottom line and need a financial expert to analyze business operations and present ways to cut redundancies and improve margins.
- The business has reached a plateau and is in need of someone with a diverse background who can provide high-level strategy.
- Their financial reports are in disarray and the business requires a professional to make sense of them and establish processes for the future.
Fractional CFO services give companies a financial leg-up allowing small and mid-sized businesses to access a CFO-caliber executive at an affordable cost.
As smaller businesses morph and evolve, they enter and exit stages of unpredictable growth. With outsourced CFO services, such as those provided by The A Team Consulting, companies benefit from their executive team members who have amassed years of experience in both public and private sector businesses.
A company can hire a CFO with specific experience working in their industry, whether it’s in the nonprofit, technology, real estate or apparel markets, to name a few. Or, a company can tap an expert in a field in which they are hoping to expand, such as if a brick-and-mortar apparel company were trying to adapt technology to gain a competitive edge in e-commerce.
How Can Fractional CFO Services Benefit a Company?
Outsourced services provide businesses with flexibility and choice, which is an invaluable currency for companies that are quickly molding and adapting to the world around them. Business owners can tap a specific person for one job, and then switch to another professional with a different set of skills to handle another project. Financial professionals can be hired to cater to specific business needs, which helps to drive return on investment. A company can access a resource with industry experience who already speaks the lingo and can interface well with company contacts, investors, clients and others.
Strong CFOs don’t simply fix balance sheets and perform accounting services–they operate as executive-level partners. They are able to interact clearly with stakeholders, such as bankers, board members, and investors, so that a company’s internal team can focus on building the core business while knowing that their financial needs are being met.
A Fractional CFO will be ready to hit the ground running from the moment they’re brought on, saving companies valuable time on recruitment, onboarding and training. With Fractional CFO services, business owners can focus on growing their business knowing they have the right financial support in place.
Primary Functions of a Fractional CFO
- Company Wide Cash Flow Management
- Monitoring Company Liabilities
- Measuring Financial Performance & maintaining relationships
- Supervising Certain Organization Departments
- Handling Financial Obligations
- Recording and Reporting Financial Aspects of the Company
- Handling Relationships with Shareholders
How to Access Fractional CFO Services
If Fractional CFO services sounds like a good fit for your business, The A Team is here to help. With over 20 years of experience, The A Team makes the process easy. Call 646-849-4267 or contact us online to get started.