A fractional CFO is someone who provides financial guidance and support to a company on a contractual basis. While he/she is no permanent member of the startup, he brings credibly-proven financial guidance and support– enabling your organization access to strategic insight that could turn its fortunes around.
Companies often see the benefit of tapping into fractional CFOs during pivotal moments in their development. From high-growth businesses and entry to new markets, to mergers/acquisitions or simply plugging a gap in leadership roles - harnessing fractional finance support can be an invaluable asset for businesses looking to maximize efficiency while minimizing costs.
A fractional CFO can provide a wide range of services, including financial planning and analysis, budgeting and forecasting, financial modeling, risk management, and financial reporting. They may also provide strategic advice and support on mergers and acquisitions, fundraising, and other financial matters. Having a dedicated expert in these areas at your disposal will set you up for profitable growth.
When looking for CFO advisory services, it's important to find someone with experience and expertise that aligns with your business's needs. It's equally important to look for someone who has good communication skills and can work effectively with your team. This is why you need reliable hands like Fresh FP&A while making strategic financial decisions.
The cost of hiring a fractional CFO can vary widely depending on factors such as the specific services needed, and the location of the CFO. Typically, a fractional CFO will charge on an hourly or monthly retainer amount. We at Fresh FP&A focus on value and outcomes we bring to our clients so our pricing is best for the client via monthly retainer.
A fractional CFO service provides the perfect balance of financial expertise and flexibility. Cost savings, specialized knowledge, closely-monitored analysis & planning make outsourced CFO services a must-have when it comes time for strategic budgeting decisions.
When your business is growing quickly but you do not have a budget to hire a full time CFO, a fractional CFO might be what you need. It’s a cost-effective way to get the services that you need, and you can create a tailored plan to your specific business needs.
One of the main advantages of hiring a fractional CFO is that they can be more cost-effective than hiring a full-time employee. Businesses only pay for the services they need, which can be a more manageable financial commitment. Additionally, fractional CFOs can help businesses with financial planning and budgeting, financial analysis and reporting, risk management, and leadership and team management. They can also assist with important financial decisions, such as raising capital or identifying new business opportunities. Fractional CFOs are becoming an increasingly popular option for small and growing businesses. They offer a cost-effective solution for businesses that need the expertise and experience of a CFO, but can’t justify the cost of a full-time employee. If you’re a small business owner or part of a growing company, consider hiring a fractional CFO to help you navigate the financial aspects of your business and achieve your goals.
While hiring a fractional CFO can bring several benefits to small and growing businesses, there are also some potential drawbacks to consider. One potential disadvantage is a lack of continuity and consistency. Since fractional CFOs work with multiple companies, they may not be available as frequently as a full-time employee. This can make it difficult to maintain consistent financial management and decision-making. Additionally, it may take longer for the fractional CFO to get up to speed on the company’s financials and operations. Another potential disadvantage is that fractional CFOs may not be as invested in the company’s success as a full-time employee. They may not have the same level of commitment to the company’s long-term goals and may not be as available to provide support outside of their contracted hours. Additionally, fractional CFOs may not have the same level of access to information and resources as a full-time employee, which can limit their ability to provide strategic financial guidance and support. Lastly, it’s also important to keep in mind that a fractional CFO may not be able to provide all the same services as a full-time CFO, and that may limit the level of support a business can get, depending on their needs.