What is a fractional CFO?
A Fractional CFO is a part-time CFO for small companies. It is a cost-effective way for small businesses to utilize the services of a Strategic professional financial professional, without the commitment, or costs of a full-time hire. Thanks to cloud-based bookkeeping, fractional CFOs have recently become accessible to even the smallest companies. Access to that data allows the CFO to do their job effectively.
Why would I hire fractional CFO Services?
There are many reasons a small business would benefit from strategic professional. These include:
- You do not spend time each month carefully reviewing the prior month’s results.
- You do not engage in a formal Forecasting, Planning, or Budgeting process.
- You are having cashflow issues.
- You do not have a business transition plan.
- You are investigating entering a new market or pursing vertical integration.
- You are considering bringing on equity partners.
- Growth is limited by cash tied up in inventory or receivables.
- You want to get new debt or refinance old debt.
- You are thinking about merging or acquiring another business.
- You spend all your time working in your business, and no time working on your business.
What fractional CFO services do small businesses need?
Fractional CFOs perform all the same functions as a full time CFO. These include:
- Monthly review and analysis of financial statements.
- Forecasting cash, revenue, expenses and profit.
- Annual budgeting.
- Monthly budget vs. actual analysis.
- Strategizing with management and providing financial expertise.
- Negotiating debt arrangements.
- Creating a business transition plan in order to maximize your return on your business.
- Managing Insurance requirements.
- Maintaining relationships with banks, lenders, insurance brokers, and investors.
- Analyzing customer acquisition costs and lifetime values.
- Working with CPAs on annual tax filings.
- Performing due diligence and valuation on business acquisitions.
READY TO SPEAK TO A FRACTIONAL CFO?
Contact us to see how your business can benefit from our CFO Services.