When to use a Fractional CFO

A fractional CFO is a Chief Financial Officer who is contracted to provide financial leadership and oversight in a part-time capacity. Typically, a Fractional CFO has experience working in a full-time CFO or financial leader role at several companies. The switch to fractional, or consulting, frequently occurs later in their career when they’re eager for new challenges. They are often also referred to as a part-time CFO, interim CFO, contract CFO, outsourced CFO, or virtual CFO.

When should you outsource a CFO?

There are many reasons why a company should or may want to hire a Fractional CFO as opposed to a full-time hire.

If you’re a small company or start-up that is hungry to get and use financial insight.

Being small doesn’t mean you don’t have aggressive growth goals. Being a smaller or new company, you likely don’t need (or it’s not in your budget) a full-time CFO every day. “Entrepreneurs and emerging companies don’t want to think like small companies, especially when it comes to financial matters. Having an interim or part-time CFO focus on the money, allows the rest of your team to focus on growing the business and taking care of your customers [Entrepreneur].”

If you’re in an industry or business with sophisticated financial needs.

The size of company may be irrelevant if you’re operating in a space with sophisticated financials. While you may not need someone there every day, the complexity involved requires the senior-level insight and advisory of a skilled CFO.

If you’re tackling a new project.

A new project or initiative can take a lot of upfront investment in time and resources. By utilizing a Fractional CFO, you gain the expertise and skills of a top-level executive, without the long-term commitment.

If you have a gap in leadership, but no time to hire and train.

A sudden growth spurt or employee loss can leave a hole in your operations. A Fractional CFO is able to “hit the ground running,” bringing years of experience and knowledge. Fractional is also an excellent option if you don’t have time to go through a lengthy hiring and vetting process.

How does a Fractional CFO work with me?

So, you have an understanding of when to leverage a Fractional CFO. How does that work?

A Fractional CFO is selected based on your unique business needs and requirements. Industry, software/hardware skills, financial complexity, and more should all be taken into consideration when selecting a fractional CFO. Although they’re not a permanent hire, the same qualifications and criteria should be measured. Part Time CFO Services has a dedicated team of 27 highly-skilled professionals. During the intake process, we will review your business challenges and select the CFO, or multiple team members, that has the most expertise in your areas of need.

Once selected, the Fractional CFO and/or team will get to know you, your business, and the key issues your company is facing. After reviewing your goals, a strategic plan will be formulated and your Fractional CFO will begin.