A fractional CFO is basically a part-time service provided to small businesses by an experienced professional. It is the best alternative for a full-time resource. By providing financial assistance and proper planning, a CFO can help reduce the risks and improve the company’s performance.
Who is a Fractional CFO?
CFO stands for Chief Financial Officer. The job of a CFO is to plan, observe, create reports, research and supervise all of the financial affairs of a particular organization. A CFO must hold a bachelor’s degree in business and have years of experience in his particular field.
Why Hire A Fractional CFO?
Hiring a fractional CFO is one of the best things that you could do for your company, especially if you are a small business or a start-up. Below mentioned are some of the reasons why small businesses must hire a fractional CFO for their company.
Improves Company’s Performance
By hiring a CFO, the other employees can invest their time and energy in other important affairs of the company, such as HR, management, business communication, supply and so on, while the CFO takes care of the finances. The best thing is that a CFO can even take care of other departments such as administration, relations with stakeholders, human resources, and other facilities. In this way, a fractional CFO can help improve the company’s overall performance.
Improves the Finances
A CFO is responsible for providing the correct financial information on time. Not only this, but they will also forecast, create reports, and do the budgeting based on the current finances. In this way, a CFO helps the company to earn more profit and improve the cash flow. With improved finances, the company tends to thrive for a longer period of time.
Improves the Decision-Making
A CFO helps the businesses to understand the finances of the company properly and even provides valuable suggestions. The authorities are able to make better decisions when they have accurate facts and figures and a clear understanding of the company’s finances.
Hiring a fractional CFO is as good as hiring a full-time resource, and in most cases, it is actually more beneficial and cost-effective. A fractional CFO will invest his time, skills and knowledge just like how a full-time employee would do but at comparatively less cost.
Helps Win Trust of Stakeholders
Hiring a fractional CFO helps in building trust and confidence among all the stakeholders of the company. While you can build online trust using HARO link building service, but Investors and lenders become more relaxed and positive when they find out that the company understands how beneficial and effective it is to hire a professional CFO.
In short, we can say that a CFO provides the best possible financial assistance and guidance to the company at reduced prices. If you don’t have enough budget to hire a full-time employee, then hiring a fractional CFO is a great idea. You can pay him for the services he offers for a few hours and save some money in this way.