December 7, 2022

Fractional CFO: Explained

What is a Fractional CFO?

A fractional CFO is someone who provides strategic financial advisory to startups and growing brands on a part-time, contractual basis. An alternative to a full-time CFO, a fractional CFO is the more cost effective method since there are no in-house costs (C-Suite salary, benefits, etc.). 

How Can a Fractional CFO Help Clients

Fractional CFOs have extensive experience in navigating growth challenges and providing financial guidance. They bring deep expertise to companies they service with and support client goals while advising on future plans.

Specific Functions of a Fractional CFO 

1. Overcome Financial Challenges

A fractional CFO can advise on:

  • Business expansion and capital allocation 
  • Cash flow management
  • Expense management and financial discipline
  • Fundraising support in a volatile environment

2. Strategic Planning With a Forward Focus 

By discussing risks and mitigation plans, providing organization leadership, and implementing exit strategies and M&A support, CFOs will ensure that a well thought out plan is in place for your company’s future. 

3. Identify Growth Opportunities

Fractional CFOs help implement new systems and processes to enable growth. Since fractional CFOs have experience with several other companies, they will be able to guide you through numerous scenarios.

4. Drive Business Performance 

Fractional CFOs will provide strategic planning, cash flow forecasting and performance tracking. As high business performance is dependent on a detailed plan and constant improvement, these items are imperative. 

Why you should consider a Fractional CFO 

1. Extensive experience

A good fractional CFO has worked with numerous companies and will use their experience to refine your financial planning structure both today and in the future. 

2. Cost effective

  • If your company cannot afford an extra C-suite colleague, a fractional CFO is the perfect solution. You get all of the benefits of having a CFO without the full cost of an in-house hire.
  • Perfect for small brands, startups and high growth companies, who are closely managing costs until they grow and expand as well as growing companies who simply do not need a full time CFO on a daily basis. Most companies don’t need a full time CFO. 

3. Versatile

Fractional CFOs are extremely versatile. Most engagements are custom tailored and flexible to client needs.

4. Unmatched focus

The fractional CFO will focus on the company’s most immediate and important needs whilst planning for longer term success, enabling smarter insights and better decisions.

Ready for CFO Services?

Contact us for a free financial analysis where we will: 

1. Review your financial statements

2. Complete an in-depth analysis

3. Discuss our recommendations

4. Evaluate partnership scope

Simply email us and we’ll respond soon: hello@financewithin.com