Why is a Fractional CFO Cost Effective?

Larger companies with greater financial complexity will incur higher costs as they outgrow their existing systems and require reorganisation.

The industry’s size and growth rate significantly influence CFO costs. Having a CFO, even on a fractional basis, can be instrumental in propelling your business forward, especially when they have access to current financial data to aid in planning for a robust future. The question then arises: how do you find the perfect fit?

To secure one of the best candidates for the position, the initial step is to craft a well-defined job description that outlines all the necessary requirements. This description should then be posted in executive job markets, where top-level executives typically seek opportunities. Once you’ve received a pool of applications, you can leverage specialized software to create role specific assessments in seconds. This step can help you to evaluate the candidates’ capabilities thoroughly.

The candidate who not only meets all your requirements but also excels in the designated assessment could very well be the next partial CFO for your business, ready to contribute significantly to its success.

A partial CFO can also be beneficial for companies trying to formulate and implement a comprehensive growth strategy. If you have a special strategic project like an IPO, merger and acquisition activity, or government compliance, the CFO will work closely with your current team without taking on additional responsibilities. If need be, a partial CFO can also help your team with things like e-commerce CFO coaching.

Your CFO will work closely with your existing management team to analyze the state of your company’s financial data. You report on the return on capital and liquidity of your company on a monthly and quarterly basis to maintain the financial clarity and visibility of your company. If you have the appropriate support from accounting and controller services, a fraction of CFOs can maximize efficiency and value while pursuing your long-term financial goals.

With clear and frequent reporting by a partial CFO, the management team can track companies “progress during a successful year and reach their benchmarks in implementing business strategies. If you embark on a period of rapid growth, a sub-unit CFO can help you adapt your processes and workflows to your new business inflow and growing cash flow. So, it may be worth your interest to look up a Part-Time CFO program in order to take advantage of the benefits it offers.

Many CFOs provide short-term turnarounds, cash flow restructuring, growth management and other CFO services while a trained member of the finance team takes on the tasks of maintaining these changes. Most companies will continue to make initial arrangements to sustain the growth and business success of a fraction of the CFO until they reach a size that can support full-time employment.

Companies that do not have the resources to hire a full-time CFO might find great value in working with a part-time CFO department, such as the CFOshare fractional CFO service. They can work better for the company if the company is large enough to afford and justify full-time employment as CFO. For smaller companies with limited budgets, the same benefits can be lower than the cost of hiring a full-time employee.

As a CFO with over 25 years of experience, I have seen the range of problems facing organizations. Here are a few real-life stories about using a fraction of the CFO for operational problems and the resulting success.

For small business owners who need financial leadership and expertise, part-time or part-time CFOs can be a great cost-effective solution. Small businesses need financial advice, but many do not need a full-time CFO. Instead, they can benefit from a cost-effective outsourced CFO service.

Outsourcing CFO services to a company that goes beyond the financial framework is one of the best business decisions you can make. Outsourced CFO – rates are a fraction of the cost of hiring a full-time CFO or one of your team members. They are also cheaper than other options because they produce greater efficiency by not having to worry about getting to their customers.