What do I need to know about a fractional CFO?
What Does a Fractional CFO Do
A fractional CFO can be a great option for many business owners. A fractional CFO is someone who will take on the role of financial officer, but only part-time. They work with your organization to determine what services they would like to provide and how much time it will take from them each week. This type of agreement ensures that you are not overpaying for a full-time CFO position, which may not be necessary at this time in your company’s development.
What does a fractional stand for? It stands for “fraction.” The term refers to an individual providing any number less than 100% of their skills or resources when working with other organizations or individuals on projects or tasks. Fractionals are not only in demand for their skills, but they are also a cost-effective option.
What does a fractional CFO do? A fractional CFO can help your organization with financial management and forecasting. They can analyze all aspects of the company’s expenses and revenue streams to make sound decisions that will move you forward on your business goals or milestones. This type of agreement is usually set up when a full-time employee isn’t necessary at this time, which may be beneficial if finances aren’t stable yet or growth plans have been put on hold until more resources become available.
A Fractional Chief Financial Officer has many duties that include providing timely warnings about potential problems ahead, ensuring compliance with policies, rules and regulations, managing the cash flow of your company or organization, and preparing financial reports for management to review on a regular basis.
A fractional CFO can be a great option if you are just starting out in business. They help with decision-making during this formative time when planning is crucial.
