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What are fractional CFO companies and what do they do?

fractional cfo company meeting at a table

Chief Financial Officers can provide immense value for any company. That being said, the majority of small to medium sized companies cannot afford to hire a full time CFO. As a result, many turn to fractional CFO companies. But what are fractional CFO companies and what do they do? Let’s break it down.

What are Fractional CFO Companies and What Do They Do?

Many small businesses reach a point where they need more financial expertise than their in-house team can provide but they’re not quite ready to hire a full-time CFO. That’s where fractional CFO companies come in. These firms provide small businesses with access to experienced financial professionals on an as-needed basis. In other words, you can get the help you need without incurring the cost of a full-time employee. But what exactly do fractional CFOs do? Let’s take a closer look.

Fractional CFOs Provide Essential Financial Oversight

One of the primary responsibilities of any CFO is to provide essential financial oversight for their company. This includes preparing and reviewing financial statements, monitoring cash flow, and ensuring that the company is in compliance with all relevant laws and regulations. A fractional CFO can provide all of these services for your small business on an as-needed basis.

Fractional CFOs Help You Make Sound Financial Decisions

Another important role that fractional CFOs play is helping business owners make sound financial decisions. This may involve developing long-term strategic plans, evaluating investment opportunities, or negotiating loans and lines of credit. Basically, a fractional CFO will help you ensure that your small business is on solid financial footing now and in the future.

Fractional CFOs Bring In Outside Perspective

In addition to providing essential financial expertise, fractional CFOs also bring in an outside perspective that can be invaluable to small businesses. For example, if you’ve been working in your business for years, it can be difficult to see things from a different perspective. A fractional CFO can help you identify areas where your business may be falling behind the competition or where you may be missing out on opportunities for growth.

 

If your small business needs more financial expertise than your in-house team can provide but you’re not quite ready to hire a full-time CFO, a fractional CFO company may be a good option for you. These firms provide small businesses with access to experienced financial professionals on an as-needed basis, which can save you money while still ensuring that you have the support you need. Fractional CFOs play an important role in providing essential financial oversight for their companies and helping business owners make sound financial decisions. If you’re looking for ways to improve your small business’s bottom line, working with a fractional CFO is definitely worth considering.

If you need improved financial results immediately, watch our three-part series on how to create financial stability now and improve profitability for the long term.