What is a Fractional CFO?

Some companies require the services of a chief financial officer but don’t have the means or the need to fill that role with a full-time employee. That’s where we come in. Contracting with a fractional CFO means we’re on-site and working with you for only a fraction of a full-time person. A fractional CFO works with you on a part-time basis to steer financial decisions that ensure your company’s present and future financial health.

What does a Fractional CFO do?

A part time CFO’s usual duties include overseeing all financial aspects of a company, including financial planning and analysis, accounting and reporting and sometimes legal and risk. When you contract with a fractional CFO you’re getting all the skills and experience of a regular CFO, but on a part-time basis.

On some occasions, our clients need a fulltime CFO for up to six months. We refer to this as an interim CFO that can help with accounting services and managing growth. But 90 percent of our clients engage us part-time, typically for five to fifteen hours per week to help with business decisions.

We truly step in as your CFO to provide your team with financial insight and the elbow grease to get things done. The only difference for us at New Life CFO is that we serve the smaller entrepreneurial business market, companies without enough full time CFO level work to justify adding a $250,000 salary to the payroll.

When To Hire a Fractional CFO

Since a company’s needs dictate the work of fractional CFOs, we get called in for several different reasons. A few of these scenarios include:

  • Smaller companies need some CFO services, but can’t justify adding a high-cost, full-time CFO position to their payroll. Instead, an outsourced CFO usually bills by the hour, saving your company the high cost of salary plus benefits.
  • A company is working on a specific project or dealing with an issue for which they need special expertise. This could be navigating an audit, preparing for a sale or merger, applying for a bank loan, adjusting a financial forecast, raising debt and equity funding, dealing with cash flow issues or deciding how to cut costs. In this case, some companies might have a CFO but need extra help and additional knowledge.
  • A company suddenly lost its CFO and needs a qualified executive to fill the seat while an extensive search is conducted.

How Does a Company Work with a Parttime CFO?

Fractional CFOs work both on-site and remotely. At New Life CFO, we prefer to do most of our work on-site. The personal dynamics of working face to face with team members greatly enhance everybody’s productivity. Some of the most valuable conversations are those that occur organically as people work together and leverage each other’s area of expertise.

That said, we do sometimes work remotely. Our primary market is DFW, but referral business from happy clients leads us into remote engagements, including clients in Austin, San Antonio, Arkansas, Tennessee, Minnesota, Florida, and California. In these cases, we combine being on-site with Zoom calls/meetings. There are other times that we’ll work remotely simply to stay focused on a specific task with critical deadlines.

Work with Us

New Life CFO sources contractors with a wide variety of industry experience who have served at least ten years as fulltime CFOs. If your company needs help with your financial big picture, we’re happy to discuss your needs.

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.