Having a Chief Financial Officer can make a drastic difference in the financial management and achievements of any business; however, it comes at a cost. For a business that is in need of a CFO yet is too small or not yet profitable enough to easily meet the pay and benefit requirements of a full-time one, there are two other options, the consultant who will work on one or two projects and move on or a fractional CFO.
A fractional CFO is able to provide guidance to the financial team, make the most of the profits, and find ways to maximize the efficiency of the team. These skills are often most beneficial to start-ups and newer businesses that are growing, yet not large enough to justify a full-time CFO. When you hire fractional CFO services and bring in someone part-time, investing in the employees and the company, and providing their professional services in a way that meets the business needs without a high overhead is beneficial for many reasons.
What is a CFO?
A CFO is the head of the financial department for any size business. They manage the final financial decisions and planning, creating a path forward for the business that is in its financial best interest. This not only requires a higher level of education than new hires but also requires experience in the industry and the ability to adapt quickly to market changes.
Why Hire Fractional CFO Services?
Often smaller companies do not yet have the income or backing for a full-time CFO but would benefit from the services of one. This is where a fractional CFO is beneficial, as they will provide the knowledge, services, and support of a full-time CFO with part-time hours and costs. The cost of a full-time CFO will include the office space and cost of running a full-time office, their full-time salary, a benefits package, and supplies. A part-time CFO will cost less in ongoing expenses, they may not require benefits, and they are paid only for the hours that they are working thus decreasing the salary expense.
Shared Benefits
Hiring fractional CFO services will benefit a company in many ways, but it also benefits the CFO. This arrangement allows them to work with more than one company at a time, or to spend fewer hours working and more time doing other things. The situation is mutually beneficial to both sides of the agreement and can create a strong working relationship that can last for years, create continuity, and result in shared goals.
Schedule a free call with our team today to learn more about the fractional services we offer.
