Traditionally, most people have assumed that hiring a Chief Financial Officer (CFO) is something only large-scale businesses have the ability to do. However, over the past 15 years, Fractional CFOs have risen in popularity as a way to make CFO services available to any sized business.
The truth is that every business will benefit from the services and knowledge a CFO can offer. In fact, it’s often the smaller businesses that are run by entrepreneurs trying to do it all but lack the experience and the expertise it takes to take their business to the next level.
If you have thought about adding a Fractional CFO to your team but you’re wondering if you are ready for one, consider these four reasons your business might need one.
1. Your Business is in Transition
The time in which a business grows rapidly can be an exciting yet risky time for a small business owner. Looking to raise more capital, hiring additional staff, implementing new systems, and all of the other new decisions that accompany growth need a voice with expertise and years of experience helping businesses develop. After all, increased cash means increased potential problems. A Fractional CFO will make sure you have the guidance and finances you need to expand without issue.
2. You are Looking for Solid Financial Strategies
Your business may also lack the expertise necessary to form strategies in order to remain profitable or increase those profits. If a small business is fortunate enough to have an in-house accountant or financial team, they often become backed up in analyzing data from the past.
Incorporating a Fractional CFO instantly brings a wealth of knowledge that can help to analyze the current financial state of your business while leading the business in creating a strategic financial plan for the future.
3. You Have Special Projects that Need to Get Done
Businesses typically have special projects on the backburner but either lack the bandwidth to initiate the project or do not have the right knowledge to complete it successfully. A Fractional CFO is an expert added to your team to take over these types of projects, such as:
- Raising capital as the business grows
- Leading the implementation of a new system
- Mergers and acquisitions
- Forecasting financial health and providing strategies
- Putting together a budget
- Any other complex project your current team lacks the expertise to complete on their own
4. You Need Additional Financial Expertise
At the stage in which you are likely considering a Fractional CFO, you probably have a reliable bookkeeper or bookkeeping service. You know how to analyze the reports, and have a basic understanding of the business’ finances.
Bringing on a Fractional CFO at that point will elevate your company’s knowledge as a whole, allowing the finances to work for you. The CFO can mentor your staff so they can use the money in the most effective and strategic way possible.
Owning a business is full of challenges and rarely predictable. As the business gains traction, it can be an exciting time. However, it is also a time when financial know-how becomes crucial. Reach out to Executive Financial Partners for a free consultation if you are wondering if your business is ready for Part-Time CFO services.