Owning a business takes a lot of work, and one of the most important areas of the business that needs attention is the finance department. You need to fully understand how much your business is making vs. spending to fully thrive. If you would like to improve your business, keep reading to learn more about fractional CFO services.
What Is a Fractional CFO?
Larger businesses often employ a full-time Chief Financial Officer (CFO) to handle the financial side of the business. This includes paying vendors, buying products, paying employees, etc. A fractional CFO is like a part-time CFO who you outsource.
Therefore, they aren't your employee, but they do come in to help with your finances. Some businesses hire fractional CFOs for regular work to help with the general business finances, but other businesses may only hire a fractional CFO for special events or complicated issues like bonuses or tax issues. Last, some businesses hire fractional CFOs to assist their in-house CFOs during busy times, such as audits.
What Are the Benefits of Using a Fractional CFO?
There are a few benefits of using a fractional CFO over an in-house CFO, but one of the leading benefits is the cost. You will need to pay for the fractional CFOs services, but since they aren't your employee, you don't have to worry about paying for their payroll, bonuses, health insurance, retirement benefits, etc. This saves you a lot on overhead costs.
Another benefit of using a fractional CFO is their experience. An in-house CFO likely has a lot of experience too, but they may only have experience in one field of business or with certain financial actions. Fractional CFOs, however, are sent to many businesses, so they may have a wider understanding of finances in general.
How Do You Find a Fractional CFO?
Many organizations employ fractional CFOs. Therefore, your best bet is to look at local providers. It's also a good idea to physically meet with the fractional CFO who will be directly helping your business, so you can ensure they are a good fit for your company and its culture.
Once you've found someone you like, it's time to ask about pricing. Depending on the company, some fractional CFOs charge hourly rates. This is ideal if you only need help for a short-term project. If you regularly need a fractional CFO, ask about monthly flat rates.
All businesses need someone who understands finances. However, that doesn't mean you have to spend a bunch of money to hire an in-house CFO with a high salary. Instead, consider working with companies like Schreiber Advisors, P.C. If you're ready, get started by finding a provider in your area today.