As a CEO, COO, or executive of a growing business, you know the importance of keeping your financials in order. But as your company expands, handling your finances can become overwhelming and can distract you from growing your business. This is where a Fractional CFO comes in. A Fractional CFO is a part-time CFO who provides strategic financial advice to your business without the overhead expenses of a full-time CFO. In this blog post, we will discuss the key considerations to keep in mind when looking for the right Fractional CFO for your business.
1. Experience and Expertise
When looking for a Fractional CFO, it’s important to find someone with expertise in your industry and experience working with companies of your size. You’ll want to ensure that they have a deep understanding of your business, its financials, and can provide insights and recommendations that will help your company grow.
2. Communication Skills
A Fractional CFO should be an effective communicator who can explain complex financial concepts in simple terms. The right Fractional CFO will understand your financials well enough to provide informed guidance and explanations without resorting to jargon. Communication skills are essential in maintaining a clear line of communication between your financial team and other departments within your business.
3. Availability
Given that Fractional CFOs usually work part-time, it’s important to establish how much availability they can commit to. You’ll want to find a Fractional CFO who can be accessible when you need them and can commit to routine check-ins to review your financial situation. Availability is key to ensuring that your financials remain in order and your business stays on track.
4. Culture Fit
It’s important to ensure that your Fractional CFO becomes part of your business’ culture. You want to select someone who shares your company’s values and vision. A culture fit Fractional CFO understands your business’ priorities and goals and works towards meeting them.
5. Cost
When compared to a full-time CFO, Fractional CFOs work part-time and are less expensive. However, it’s essential to ensure that you understand and agree with their pricing structure. Be sure to work with someone who can provide transparent pricing structures that align with your business’ financial goals.
Hiring the right Fractional CFO will help your business grow while reducing the stress and complexity of managing your financials. With the right level of expertise, availability, and communication skills, a Fractional CFO can help your business achieve its financial goals. Keep these key considerations in mind when selecting the right Fractional CFO for your business. Remember that a culture fit is just as important as experience and expertise and ensure that you have well-established pricing structures that meet your business’ financial goals.