Fractional CFO Services

Fractional CFOs, also sometimes called outsourced, part-time or virtual CFOs, give you access to resources with decades of business leadership experience on a contract basis. Fractional CFO pricing is more affordable than hiring a full-time CFO, whose annual salary can often run a business over $200k.

While there is no magic annual revenue number or formula for when your business might be ready for fractional CFO services, we often find that businesses with more than $2 million in annual revenue can benefit greatly. A better gauge is whether or not you need help with cash flow management, establishing KPIs, help with reporting accuracy and reducing overall risk - and don't have the in-house financial resources to help. There are also a few business events that can be an indicator such as plans to open multiple locations, slow invoicing and collections creating cash flow issues, considering acquiring another company or planning a large capital purchase. Once you've determined it is the right time to consider fractional CFO services for your business, it's time to interview potential service providers.

Getting confidence in the numbers first means sharing the numbers. Trusting and understanding your fractional CFO service provider's processes are key. Selecting a fractional CFO services firm should start with a 'get-to-know-you' style initial consultation. Use this time to ensure that the CFO resources align with your business values and culture, understand their approach to fractional CFO consulting and how their engagements are structured. Here are a few questions to help you plan out your time:

• Do you provide proactive/strategic financial services?
• What does your onboarding process look like with new clients?
• Will I get a dedicated CFO resource? What is their name? Tell me about them.
• How do I access my CFO resource(s) and how often?
• Do your services include preparation of financial documents, reporting and/or forecasting?

We asked business leaders and finance pros to weigh in. They had some high expectations. See what else they had to say!