You probably already know that CFO stands for Chief Financial Officer. It’s a position usually associated with large corporations working in sprawling offices in skyscrapers.
But what if you own a small business that can’t afford the high salary of a CFO, but you still need the services and expertise of a CFO? That’s where a fractional CFO can help.
First, let’s start by talking about the job of a CFO.
What Does a CFO Do?
A CFO is not the same as a bookkeeper, who handles the day-to-day tasks associated with your company’s finances, including creating invoices, paying bills, matching invoices and bills to the activity listed on your bank statement, etc.
A CFO works with the big picture of your company’s finances. They look at your cash flow, but they also analyze your company’s financial strong points and weaknesses. They use that data to help you make business decisions that will grow your company so you can afford to hire a full-time CFO.
For example, let’s say you want to invest in a specific piece of equipment so you can offer new services to your clients. A CFO can look at the cost of that equipment and make recommendations regarding how much you should charge for that service to make the investment worthwhile.
What Is a Fractional CFO?
A fractional CFO does everything a CFO does, but they are an independent consultant rather than a full-time employee. That means they have more than one client for whom they provide CFO services, and they only work part-time for each client.
Because a fractional CFO has other clients, you don’t get them for 40 hours a week, which means hiring a fractional CFO is only the right decision if you don’t have enough work for a full-time CFO. This is what makes fractional CFOs ideal for small- to medium-sized businesses.
How a Fractional CFO Can Help You Grow
Because a fractional CFO can help you make business decisions that make the most of the money you have now, and help you get more money in the future, hiring a fractional CFO is a great way to get someone on your team now. They can help you make the smart financial decisions that will help you grow your business so you can get to the point where you need – and can afford to hire – a full-time CFO.
Many small business owners make the mistake of thinking they have to do everything on their own until they can afford to hire full-time employees to take tasks off their plates. That is a recipe for stress, overwhelm, and doing a lot of things poorly instead of focusing on what you do best.
Hiring part-time employees and independent contractors is a great way to use the resources you have to offload some of those tasks so you can focus on growing your business while they help you with the tasks they do best. The decision to hire a fractional CFO should be no different. Although I call my business The Bookkeeping Doctor, and I do offer bookkeeping services, I also offer fractional CFO services to small- and medium-sized businesses who need a CFO but are not yet in need of a full-time CFO to take on their financial analysis. If that sounds like something you could benefit from, just go here to schedule your FREE consultation.