Many leaders and business owners have believed for years that an in-house, full-time CFO is a necessary component for business success. While it’s imperative to effectively and efficiently manage your finances, times have changed, and there are new ways of doing things that don’t compromise your company’s financial health. A fractional CFO is a highly beneficial alternative to a full-time, traditional, corner office CFO that companies have used for years. Whether you don’t have a budget yet for a CFO or it’s just not necessary at your stage in business, hiring a fractional CFO could be the answer. Here are 5 reasons why you should hire a fractional CFO for your growing business.
Better information for improved decision making
With a fractional CFO, you receive all of the statements, reports, projections, forecasts, budget sheets, and cost models that you need to make informed decisions for your business. If you are trying to manage all of the finances on your own, these important documents are often behind schedule or unorganized. If you have placed this task on another leader who is already overwhelmed with their daily responsibilities, the numbers can be inaccurate or dated. The accuracy and timeliness of these documents that a fractional CFO can provide, allow you to improve company insight and encourage proactivity in decision making. When you have an expert team that is experienced with compiling the necessary numbers in an organized way, you are able to use the data to increase efficiency, decrease costs, and optimize profit and cash flow.
Flexibility and adaptability to meet your changing needs
Did you take on all of the financial responsibilities yourself? That’s what great leaders do, right? As a business owner of a budding company, it’s hard enough to manage employees, pursue growth and opportunity, and plan for the future. When you try to do everything and pile on the financial tasks, it becomes difficult to make time for financial responsibilities that go beyond the bills and daily tasks. By utilizing a fractional CFO, you will find customized support that can ebb and flow with the evolving needs of your organization. A fractional CFO and their team can keep an eye on things, and tailor their approach and schedule to ensure that they are there when you need them the most. It makes sense that you don’t need them every day from 8:00-5:00, but if there’s a time when things are ramping up and you need more help, they’ll be there to support you and your team.
Senior-level background and expertise to support your company
If you think that a fractional CFO has less experience than an in-house CFO, you have an incorrect impression of the types of individuals that fill those roles. While we all know many extremely qualified traditional CFOs, a fractional CFO meets and surpasses those same industry standards. A fractional CFO, and their team, possess the same qualifications and attributes that you would expect from an in-house, full-time, traditional professional. A fractional partner has a wide variety of relevant experience within various industries and has worked with a multitude of organizations, giving them a unique outlook that not all traditional CFOs possess. Because they have “been around the block” more than a time or two, they have the ability to quickly identify and address financial issues and implement best practices to arrive at a solution.
Enhanced collaboration to increase productivity
Too many leaders focus on the fact that a fractional CFO is “out-of-office,” which makes them hard to reach, unavailable, and too autonomous, right? This is never the case with a qualified fractional CFO team. Just because a fractional CFO doesn’t have a designated space in the office doesn’t mean that they can’t communicate with the same efficacy as a 9-5er. A fractional CFO can typically step in office when needed, depending on your location dynamics, and are easily available virtually for a face-to-face call. When the process works well, the individual still becomes embedded in the management team and is never out of the loop, offshore, or out of reach. A fractional CFO will always be ready to help you make key business decisions that need accurate financial information for support.
Greater perspective with expanded vision
Perspective is everything in business. When the person in charge of your financial management has vision and can critically think about the past, present, and future of your organization, it will only benefit your company in the long run. A fractional CFO can enhance the decision-making process by bringing forward financial facts, revealing solid numbers, and asking the right questions to promote compelling and beneficial dialogue. Providing fresh insight and a sounding board for new ideas and initiatives, a fractional CFO can give your leadership team a competitive advantage when it comes to analyzing your next moves. No matter if you’re looking to expand or downsize, penetrate a new market, or make an investment, a fractional CFO is a trusted advisor that will help you with these key, future-altering, business decisions.
With a fractional CFO, you get all of the benefits of a full-time resource. You still have a senior-level expert at the table without the cost of bringing on a full-time employee. If your company arrives at a point when a full-time, in-house CFO is needed, it’s a seamless transition that your company won’t even feel. Hiring a fractional CFO will give you the time you need to focus on the business, as you’ll be giving the financial management and oversight of your company’s finances to someone that you trust.
Myers CPA acts as a fractional CFO/outsourced accounting firm, that allows leaders to focus on their business, while we focus on the finances. Interested in partnering with a fractional CFO? Contact us at Myers CPA for a free financial assessment.