What is a Fractional CFO?

Did you know the average base salary for a Chief Financial Officer (CFO) is $397,448?

For small business owners, this figure can be alarming, and for good reason. There is, however, a solution. With a fractional CFO, you can reap the benefits of a full-time CFO at a significantly reduced rate while still being able to get the same level of financial leadership and insights.

From helping to raise capital to spearheading your organization’s finances, the benefits of fractional CFO services may just surprise you.

In today’s article, we’ll cover:

• What is a fractional CFO?
• The benefits of fractional CFO services
• The key roles that fractional CFO companies offer businesses

What is a Fractional CFO and What Services Do They Offer?

Generally operating in a part-time capacity, a fractional or outsourced CFO helps organizations manage and optimize their finances.

As financial professionals, a part-time CFO provides financial insight, helps executives make data-driven business decisions, and is responsible for implementing a financial strategy that aligns your organization’s financial goals.

While using fractional CFO services to streamline business financials may sound more valuable to small businesses, sometimes a company hires a fractional CFO to:

• Aid with funding
• Prepare audits
• Streamline tax and compliance efforts
• Integrate new accounting technology into existing systems
• Help executives with creating strategic initiatives to meet company goals

Regardless of a company’s size or industry, the versatility of CFOs is what makes them advantageous for organizations. From routine business consulting to solving your toughest financial challenge, fractional CFO services can vastly improve the way you do business.

How Much Does a Fractional CFO Cost?

Most companies start looking for a fractional or full-time CFO when the size and complexity of their revenue are too overwhelming for their in-house team to manage.

Generally, this occurs around the Series B funding round or where small-to-medium-sized businesses generate annual revenue between $1 to $25 million. Still, when compared to the long-term salary expenses of a full-time CFO, fractional CFO rates are nominal.

The degree of fractional CFO consulting needed from an organization is usually the deciding factor.

Given the depth of skills a fractional CFO possesses, it’s generally best for business owners to find fractional CFO services that are customized to the demands of their business.

The Benefits of a Fractional CFO

There are many roles that outsourced CFOs can perform.

From helping to save time and resources to rendering actionable insights for strategically scale your business, the additional benefits of working with a fractional CFO for business prosperity include:

• Ensuring proper checks and balances
• Providing routine financial reporting and forecasting
• Rendering complete financial oversight and leadership
• Deploying advanced data analytics and workflow automation technologies
• Remediating issues like debt management, capital acquisition, and poor cash flow

Gain a Fresh Perspective of Your Numbers With a Fractional CFO

Gain a complete understanding of your business’s finances and make more strategic decisions with a fractional CFO’s financial leadership and guidance.

From resolving short-term financial problems to planning for long-term success, our CFOs can help you tackle everyday accounting issues to complex financial challenges.

With Michigan CFO Associates in your corner, your business will work with an experienced CFO who best meets the needs of their industry and financial situation while avoiding concerns about overpaying with our convenient fixed fee engagements.

For more information about our fractional CFO services, contact us today to arrange a consultation.