Of all the Catch-22s that pop up in small businesses, hiring a chief financial officer (CFO) can be one of the most frustrating.
You see, the easiest way to gain control of your finances and build a foundation for future profit is by getting someone great in the CFO position. But another C-suite position requires a whole lot of money, and you may not have those funds at your disposal.
Some might say it’s an unfair vicious cycle. I say you just need to get creative. There’s a way for you to get timely financial advice without paying for another corner office and full-time CFO.
Before we talk about the benefits of fractional CFO services, what’s the difference?
What’s the Difference Between a Fractional CFO vs. In-House CFO
A fractional CFO offers their skill set and experience to a company on a part-time or contract basis. They are typically very experienced and can equip companies with high-level insights to overcome specific challenges or achieve financial goals. While an in-house CFO spearheads the overall financial management and strategy of your organization.
The biggest advantage is the most obvious: a fractional CFO costs much less than an in-house CFO and doesn’t require all the additional expenses of a full-time employee.
By digging a little deeper, you may discover your need don’t call for a full-time position. A fractional CFO or part-time CFO would more than fulfill your financial goals.
Because here’s the thing…
A fractional CFO can hone in on a specific element of your finances, from debt management to future planning, and cash flow.
And quite frankly, that could be all you need to make more informed decisions.
Here’s what you need to think about when hiring a fractional CFO.
The Biggest Benefits of Hiring a Fractional CFO
Improved Decision-Making
To make the best decisions, you need the best data. A fractional CFO will get you relevant and accurate financial information so you can make better business operations decisions.
Some fractional CFOs have subject matter expertise — if that’s important to you, then use that spearhead your search.
“Been There Done That” Experience
Working with many different businesses on their finances vastly improves your problem-solving skills having seen a wide range of products and services, and business finance situations. This can be a huge benefit if you’re looking for someone who has experience with the particularities of the kind of business you’re running. It’s not a conflict of interest, but it gives them more experience to pull from with your situation.
Are you up to your eyeballs trying to navigate an audit?
Looking to manage investor relationships?
Need help managing debt or planning annual budgets?
Ready for a 5-year plan?
A fractional CFO can tackle your financial to do list or spot problems and inefficiencies you didn’t find.
On-Demand Services
You may just want to bring in a fractional CFO for one specific project. Or you might require their services on an ongoing contractual basis. By identifying your specific financial challenges, you’ll get a better understanding of how long you’ll be working with your CFO.
You should definitely figure out their availability from the get-go. Will they be able to attend weekly meetings, or log into a Zoom call twice a week? Establish communication needs from the beginning, so you can make sure your fractional CFO can accommodate them.
Hiring a fractional CFO can be a game-changer for business owners looking to level up their finances and see real growth. If you think you’re ready to pass off your finances to an expert, fill out a form and we’ll set up a call.
I Heart EBITDA has more than 22 years of experience helping businesses grow. I set up manageable processes that scales, and accurate reporting that helps you understand their finances and make the right decisions.
Reach out any time if you’d like to explore getting a fractional CFO for your business.
