Hi, I’m Bette Hochberger, CPA, CGMA, and on today’s quickie, I discuss all you need to know about Fractional CFOs. If you’re a small business, you might want to consider hiring one, and I’m here to tell you why.

What is it?

A Fractional Cheif Financial Officer is a financial expert who works part-time or on a project basis for small and medium-sized businesses. They provide strategic financial advice and management to help businesses achieve their financial goals. They help with budgeting, forecasting, cash flow management, financial reporting, and strategic planning. The great thing about Fractional CFOs is that they are a cost-effective solution for businesses that don’t require a full-time CFO but still need financial expertise and guidance. 

First off, who needs a Fractional CFO? Small businesses, start-ups, family-owned businesses, businesses preparing for a sale or acquisition, or businesses needing financial restructuring can best benefit from hiring one. In general, any business that needs financial guidance and support but cannot afford a full-time CFO may benefit from hiring a Fractional CFO. 

Some Reasons to Hire a Fractional/Contract CFO:

  • Cost Savings: One of the main reasons to hire a contract CFO is cost savings. A contract CFO is way less expensive than a full-time CFO, and you only pay for the services you need; instead of getting a bunch of unnecessary services, your contract CFO can tailor their service to your business’s needs.
  • Flexibility: A contract CFO can work as needed, which means you can hire them for a specific project or time period. Again, this provides your business with flexibility in terms of budget and staffing. Fractional CFOs work flexibly and can provide services tailored to the business’s specific needs. This can be especially beneficial for small businesses that have fluctuating financial needs.
  • Expertise: A contract CFO brings a wealth of experience and expertise to your business. As a result, they can provide strategic financial guidance and help your business make better financial decisions.
  • Objective Advice: Because a contract CFO is not an employee of the company, they can provide objective advice and recommendations that are not influenced by internal politics or biases.
  • Scalability: A contract CFO can help your business scale up or down depending on your needs. This can be especially helpful for startups or businesses going through periods of growth or contraction.
  • Better financial decisions: If a small business has just started, making financial decisions can be tough. That’s where a fractional CFO comes in; they can help make better financial decisions by providing valuable financial insights. This helps the business make informed decisions that align with its financial goals.
  • Improved cash flow: A fractional CFO can help a small business improve cash flow by analyzing cash inflows and outflows, identifying cash flow problems, and developing strategies to improve cash flow.

Final Thoughts

Overall, a Fractional CFO provides high-level financial guidance and support to help a business achieve its financial goals and improve financial performance. If you are a small business or start-up, you might want to consider hiring one. If you think a Fractional CFO might benefit your business, feel free to schedule a meeting with me, and I’d be happy to talk more about your business needs. You can learn more about our Fractional CFO services here. So, if you are looking for a part-time CFO who can offer you cost savings, flexibility, expertise, and object advice because you are scaling up or down your business, contact my office today by clicking the link below. I’d be happy to chat with you about our monthly offerings. 

As always, stay safe, and I will see you next time.