If you are busy running a business, it can be difficult to manage everything on your plate. Delegation becomes super important, especially as your name grows and your work demands continue to pile up. That is why hiring a fractional CFO is a great idea for all small business leaders!

What Is A Fractional CFO, and Why Should You Hire One For Your Business? | Emily Volz Bookkeeper & CFO

What Is A Fractional CFO?

A fractional CFO (chief financial officer) is a numbers expert who can take charge of the finances in your small business. The “fractional” portion of the fractional CFO title indicates that the position is part-time or as-needed, which is great for entrepreneurs who need a helping hand but don’t yet require a full-time financial manager.

Someone in this role can accomplish quite a few services for small businesses! They can crunch numbers for any specific projects or throw together charts to reflect your entire financial year. They’ll also help with goal-setting and creating number projections for the future.

The true beauty of a fractional CFO is that they are available when you need them without being full-time. Until your small business grows to the next level, a fractional CFO may be exactly what you need.

Related: How To Handle Basic Bookkeeping For Your Business On Your Own Like A Pro

How Will A Fractional CFO Help Your Business? 

Hiring a fractional CFO doesn’t just look fancy on your payroll. It can have a seriously positive impact on your business, too! 

Take a look at all of the reasons why this role is an asset to any team. 

A Fractional CFO Will Help You Navigate Complex Financial Challenges

The busier your business becomes, the more complicated the financial web. Client X owes $3,552 on a project from last month and Client Y has paid ahead for the entire year. Meanwhile, Susy and Charlie get paid bi-weekly but Sheila gets paid a salary with a complex bonus structure. Are those the puzzles that you’d like to be spending your time on? 

Having a fractional CFO guarantees that someone has their eyes on the flow of money. That way, nothing gets overlooked or jumbled. This person will take charge of chasing down clients and customers for money due, then process it right through to payday. How nice is that?

They’ll Help You Create A Strong Financial Plan For Your Business

A fractional CFO does more than just move things along—they can paint a picture for the future. With money being their main niche, fractional CFOs come with the knowledge and ability to reconfigure your finances and help you get the greatest bang for your working buck.

Say you need to allocate a healthy chunk of change for new equipment, a bold new project, or new employees. Your fractional CFO will assess your financial flow from start to finish. You’ll fully understand where you can afford to cut corners or make adjustments.

You’ll Build A Solid Financial Foundation

Instead of wondering whether your business bank account can withstand the growth that you dream about, a fractional CFO will help you know for sure. The relief in pressure that comes from a strong financial base will lead to confidence farther down the line.

What’s more, your assured responses and consistency with regard to finances will make your clients feel more secure with you as well. In this way, you’re allowing someone to prepare your business for growth and push it to the next level, too!

Helps Fast-Track Business Growth

The help of a fractional CFO means that you can solve business problems much faster than if you were tackling them alone. A fractional CFO can work to educate your team and your clients on your financial structures, and uncover inefficiencies and errors that may be slowing things down.

With an expert steering money through your business, you can rest assured that no stone is being left unturned. Your business can expand without hesitation when someone is constantly pitching new ideas and fixed figures for you to work with.

You’ll Start Achieving Your Financial Goals

Imagine that your biggest project of the season comes knocking on your door. You have to dole out money for advertising, to cover extra working hours, and for researching the best and most affordable platforms to reach your final destination. 

A fractional CFO works like a copilot! They can help you navigate financial speedbumps before they even happen, and bring a ton of ideas from previous CFO positions that you may not have considered on your own.

How To Ensure That You Hire The Right Fractional CFO

​​The right fractional CFO will have a few things going for them. First of all, they will have the availability and flexibility to meet your needs. Business owners usually seek them out so that they can accomplish specific financial tasks a few times a week or month. Other times they require someone to help with an isolated project.

Next, you will want to find someone who jives with the other personalities on your team. This makes their on-and-off schedule feel more natural for everyone involved. Andas always and with all sorts of teammateswhen a fractional CFO feels comfortable and welcomed into a working family, they are more likely to work harder towards shared goals.

The last bit for your consideration would be the working history and acquired skills of your fractional CFO. While some CFOs are just starting out (which may be just what you’re looking for), others are transitioning from full-time positions and have loads of experience to unpack.

A fractional CFO can make your life in business so much simpler. You’ll be able to redirect your focus to the more creative parts of your job. Enjoy the advantages of having a money-savvy teammate by your side!

What Is A Fractional CFO, and Why Should You Hire One For Your Business? | Emily Volz Bookkeeper & CFO