What is a Fractional CFO & What Do They Do?

In fact, when your finances are relatively simple, outsourcing can keep your budget manageable and reasonable. A CFO can improve the decision-making process by bringing facts, solid numbers, and asking the right questions. Another benefit to the business owner is the fresh perspective and insights brought by the CFO. This can have the added effect of making life a little less lonely for the entrepreneur.

Other small Fractional CFOes can refer you to the fractional CFO that they’re using. Because part-time CFOs split their time between multiple companies, you won’t divert necessary CFO resources from that business. The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever. Fractional Chief Financial Officers , also known as virtual CFOs, are becoming more popular for businesses to use. Chief Financial Officers are the most senior finance position of the organization, they oversee the finance department, and often are considered a trusted advisor to the Chief Executive Officer . Troy Skabelund has over 20 years experience as a CFO and Systems Expert for organizations of all sizes and industries, including 12 years at the Walt Disney Company.

Completing Projects Faster with Added Resources and Focus

A dedicated CFO working in the business, as part of the leadership team, fractionally, a day or two per week. Managing the company’s cash and burn as well as making recommendations around hiring or altering the burn rate. New Life CFO is the leading fractional CFO entrepreneurship firm in the Dallas Metroplex, representing over $400M under management.

You need someone who can https://www.bookstime.com/ the right amount of attention to your company for the foreseeable future. Fractional CFOs are in high demand and finding someone who has enough time to dedicate to your business can be a challenge. Working with someone who doesn’t have the bandwidth to give you the attention you need could later become a massive mistake. A company gearing up to get ready for a $100 million venture raise is very different from a company with more modest capital needs. You need someone who understands your stage and can propel you towards future goals.

Fractional CFOs provide a full finance team

It’s better for outsourced CFOs to not perform day-to-day bookkeeping and accounting. According to Finvisor, outsourced CFOs charge an average of $175-$300 per hour. Therefore, asking them to handle basic accounting tasks would be a waste of money and talent. And since outsourced CFOs will go over your legal documents, they’ll be able to determine whether they’re in your business’s best interests, from a financial perspective. For example, when it comes to SaaS companies, this usually involves operations such as analyzing the ratio of customer lifetime value vs. customer acquisition cost . In this section, we’ll explore 9 common fractional CFO services and how scale-ups benefit from them.

A controller may have the financial mind for numbers but lack the ability to report and interpret on those numbers, creating long term strategy. A controller may also carry less weight with stakeholders and potential investors than a CFO.