What do Fractional CFO's do?

The function of a CFO has undergone substantial changes. CFOs are now accountable for more than just maintaining accuracy in the books.

1. Strategic Partners: They work as strategic partners with the CEO and management teams, assisting in determining the course of the business and promoting growth and value creation.
2. Financial Planning and Analysis: They are essential to financial planning and analysis because they offer suggestions and insights that help boost the business's bottom line.
3. Risk Management: They supervise risk management and guarantee that the business complies with financial laws.
4. Investor Communications and Merger's Acquisition: They frequently work on investor communications, mergers, and acquisitions, reflecting the company's financial stability to outside stakeholders and managing exits.
5. Capital Structure: They oversee the business's capital structure and identify and analyze optimal financing methods (debt vs equity).
6. Collaboration with Executive Team: They collaborate closely with other executive team members to match overall business objectives with financial targets and guidance.
7. Role in Budget: The CFO plays a crucial role in preparing the company's budget and establishing targets and timelines with members of the management team and Board of Directors.
8. Business's Finances: They take care of the business's finances, which includes debt, equity, and cash flow; and manage the accounting and reporting of the company.
9. Financial Hazards:The CFO plays a vital role in recognizing and controlling financial hazards and provides guidance and financial analysis to the CFO and other executive team members.
10. Financial Hygiene: They are responsible for sound financial practices, policies, and organizational controls.

Why you need a Fractional CFO

• Enhanced decision making: By basing key business decisions on relevant and accurate financial information and a fresh perspective, the business can avoid costly mistakes, reduce the risk of loss, and improve success.
• Expertise: Fractional CFOs are experienced financial professionals who often have a diverse background working with various companies across industries. Their expertise can bring fresh perspectives, best practices, and innovative strategies to a company's financial management.
• Strategic Guidance: Fractional CFOs can provide valuable strategic insight to help guide the company's financial decisions and long-term planning. Their expertise can contribute to better-informed growth, investment, risk management, and cost control decisions.
• Focus on core competencies: By outsourcing the CFO function, a company's leadership and internal financial team can focus on their core competencies, leaving the financial management to a seasoned professional.
• Better financial information: A fractional CFO producing accurate and timely financial statements, management reports, projections, forecasts, budgets, and cost models based on economic reality enhances management insight and promotes proactive management.
• Customized utilization With a fractional CFO: The client needs can be customized and evolve as the needs of the organization change.
• Objective advice: An external fractional CFO can offer unbiased advice without being influenced by internal politics or personal relationships. This objectivity can lead to more informed and effective decision-making.
• Cost savings: A fractional CFO can bring all the benefits in terms of skills and knowledge of a full-time resource at significantly less cost. An experienced CFO's compensation is typically $300,000+. This is particularly valuable for companies that don't require constant CFO oversight or cannot afford a full-time executive.