The thought of bringing in an outside resource like a fractional CFO to navigate your financial challenges and develop clarity and strategy around your unique financial situation may seem like an overwhelming task. Although the idea of hiring a newcomer to such a crucial position is intimidating, there are many benefits to utilizing the services of a fractional CFO that make the decision of using one a lot easier.
Fractional CFOs are professionals with deep financial experience that assist companies with things like cash flow management, financial strategy, audits, regulations and more on a specified schedule. Typically, they work on a part-time basis or are only involved in certain projects. Now that you have some background on the overall purpose of a fractional CFO, let’s dive into a few key benefits.
1. Cost
Probably the arguably best benefit of engaging with a fractional CFO is the fact that you get the expertise and service of a full-time CFO but at the fraction of the cost. They provide the responsibilities you would expect any CFO to perform but at a time and schedule that is set by you so you can budget their wages accordingly.
2. Breadth of Experience/ Perspective
Oftentimes, fractional CFOs have a few previous full-time CFO positions in their career history. They may also have experience working with a number of companies in a fractional CFO capacity. This allows the opportunity for new perspectives and a wide breadth of experience to be brought into your organization. Having someone like that bring a fresh set of eyes and ideas to your current financial procedures can be invaluable.
3. Establish Best Practices
Fractional CFOs not only can refine your financial strategy while they are a part of your team, but they can also establish best practices, so you are set for the future. At BerganKDV, our fractional CFOs always provide their analysis and findings with your organization and based on your unique data will recommend best practices for your organization. That way you can continue building your financial future after their services conclude.
4. Flexibility in Support and Participation
The schedule and availability of fractional CFOs are typically determined by your organization’s preferences. Whether that means having them on-site at your office or online via virtual tools, fractional CFOs have the flexibility to adjust to your support needs. They can also be more heavily involved in your business operations. Some fractional CFOs participate on the board of the organization they are partnering with to provide their insights to leadership and assist in mitigating any potential conflicts of interest. Additionally, they may work with outside parties on your behalf such as the organization’s bankers or attorneys.
5. Heightened Productivity
Especially true for smaller businesses, fractional CFOs take the immense responsibility of managing your organization’s finances off the business owner’s shoulders so that they can focus on their main tasks and running their business. Fractional CFOs can also usually perform or direct the administrative functions of your business, from assisting with HR through facilities and stakeholder relations. This allows for an immense amount of freed-up time that can be better spent on enhancing other parts of your business. The more time made available to business owners, the more productive they can be in achieving their organization’s goals.
The benefits mentioned above are a select few of the many positive aspects there are to hiring a fractional CFO. At BerganKDV, we take a custom approach to our fractional CFO service offering so that we can adjust to the unique needs of your business and effectively collaborate alongside your team. Whatever financial milestones you have set for your future, the right fractional CFO can help you get there. If you are interested to learn more about BerganKDV’s fractional CFO solution and what the role can do for your business, feel free to contact our team and they would be happy to address your questions.
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