The definition of a fractional CFO is a financial executive who provides part-time or project-based financial advice and guidance to a business. You might also refer to this position as a contract CFO.
They are hired on an as-needed basis, often for a specific duration of time. A fractional CFO, meaning a contracted chief financial officer, is knowledgeable in all areas of company finance, including budgeting, forecasting, cash flow management and strategic planning. They provide experienced guidance to businesses on how best to manage their finances and reach their goals, as well as mitigate risk and handle mergers or large purchases.
Hiring a fraction CFO means that you can get a certain project completed without hiring a new full-time position.
Now that you know the meaning of a fractional CFO, does your company need one?
Do I need a fractional 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.
__ Your company is purchasing another company or large investment.
__ You want to forecast potential financial pitfalls and avoid them before they take place.