What is a Fractional CFO?
In an effort to control costs while ensuring input from the highly developed skills of a qualified Chief Financial Officer, many companies are now turning to a Fractional CFO. The Fractional CFO is a part time non-employee that handles certain tasks as needs arise, for the fraction of the cost, instead of adding a permanent executive employee to the overhead. This contracted expert works as a strategic partner to the owner and executive management of the company regarding the financial needs of the business.
There are many different ways in which a Fractional CFO can bring expertise and experience to a company. One strategy could be project-based, such as working with financing sources, an audit, compliance issues, or due diligence. The Fractional CFO could also be an on-going integral part of the team on a packaged or retained basis.
This form of contracting may involve financial reviews and analysis, financial strategy, guidance during period of high growth, and assistance on investment/acquisition decisions.
The Benefits of the Fractional CFO
Business owners are often tasked will playing many roles to help grow their products, which may leave little time for innovation and entrepreneurship. Technology has allowed for a lot of delegation and automation of various business functions; however, it cannot bridge the gap for the important elements, including financial aspects. This is where some business owners are tactfully allocating funds for incremental expertise from a contracted Chief Financial Officer.
Contact Velocity Business Advisors to discover how, as your Fractional CFO, we can formulate the ideal financial plan for your specific business.