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What is a fractional CFO and why your small business needs one

Contract Executives

A fractional CFOs, also known as a contract CFO, offers companies a cost-effective way to hire a temporary CFO at any time. This is beneficial for large companies in the process of transitioning from one CFO to another. It’s also beneficial to small business owners who aren’t ready to hire a full-time accounting position, but who need help with financial management. At the end of this article, we have a checklist that will help you determine if our services are right for you.

What is a CFO?

A fractional CFO is someone who acts as a consultant and offers advice on how to achieve the company’s financial goals. This is a temporary, part-time or full-time professional who is employed by the company to fill in or serve as a temporary replacement for the chief financial officer.

Fractional CFO for large companies and corporations.

In large companies and corporations, a fractional CFO is often used to ensure someone with financial expertise manages the position of a retiring executive. This allows an executive to leave the company on their own timeline, while the fractional CFO can bridge the gap until a new permanent hire is made.

This type of CFO works closely with the employees and management to understand what needs are and are not being met. They integrate with the team and keep communication open. Fractional CFOs can provide advice on financial decisions and offer guidance on how best to plan for unforeseen budget hits and mitigate potential risks.

Even if your company currently has an accountant, a contract CFO can work with your accounting department to set long-term budgets, establish goals, forecast risk or handle mergers and large transitions.

Fractional CFO for small businesses.

Fractional CFOs are an excellent option for small business owners who want to save time and money. A fractional CFO can take the burden off a company’s current in-house financial team by providing the necessary expertise and assistance in areas such as accounting, budgeting, cash flow, and risk management.

A fractional CFO can also help business owners get ahead of financial trouble. They can calculate the risk that a company faces in various business situations and work with management to come up with solutions before they become a problem.

Do I need a contract CFO?

Use the following checklist to find out if it’s time to call us today.

__ You have trouble balancing your books.

__ You have trouble paying your bills on time.

__ Your company has been in business for more than three years and is growing rapidly.

__ The amount of taxes you pay is becoming difficult to manage.

__ The amount of time it takes you to manage, track and plan your finances keeps you from running your business or implementing new ideas for growth.

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