What is a Fractional CFO?

A fractional CFO is a part-time Chief Financial Officer who provides high-level financial expertise to companies on a contractual basis. This arrangement allows businesses, particularly startups and small to medium-sized enterprises, to access top-tier financial leadership without the commitment and cost of a full-time executive.

Growing Popularity

Interest in fractional executives, from CFOs to other C-suite roles, has skyrocketed:

• Fractional and temporary executive roles grew by 18% between 2021 and 2022.

• Since 2020, there’s been a 57% surge in fractional executive hiring.

These numbers underscore the evolving business landscape and the importance of nimble, on-demand leadership.

Fractional CFO reporting about company performance

Benefits of Working with a Fractional CFO

Benefits of Fractional Executives

Gain Strategic Financial Leadership

• Provides expert financial guidance, helping businesses align their financial strategies with overall goals.

Improve Decision-Making

• Enhances the quality and speed of crucial business decisions.

Drive Growth

• Identifies new opportunities and optimizes resources

Maintain Flexibility and Cost-Effectiveness

• Access top-tier financial expertise without the commitment of a full-time salary

What Does a Fractional CFO Do?

Key Responsibilities of a Fractional CFO:

Strategic Financial Planning
• Develops and implements financial strategies aligned with business goals
• Provides decision-making support based on financial analysis
Cash Flow Management
• Improves and optimizes cash flow
• Establishes effective cash management practices
Financial Reporting and Analysis
• Prepares and analyzes financial statements
• Establishes KPIs and reporting systems
Fundraising and Capital Management
• Assists in raising capital through equity funding or debt financing
• Manages relationships with investors and financial institutions
Risk Management
• Identifies and mitigates financial risks
• Implements internal controls and compliance measures
Business Intelligence
• Provides insights for data-driven decision making
• Develops financial models and forecasts

When Do You Need a Fractional CFO?

During periods of rapid growth or change
When preparing for fundraising rounds or exit strategies
To improve financial systems and processes
For specific financial projects or challenges
When full-time CFO expertise is needed but not affordable

Why Hire a Fractional CFO?

Cost-Effective Expertise

CFO-level skills at a fraction of full-time costs

Flexibility

Scalable engagement based on business needs

Objective Perspective

Brings fresh insights and industry best practices

Specialized Knowledge

Expertise in areas like M&A, turnaround strategies, and system implementations

Mentorship

Can train and develop in-house finance teams

How to Engage a Fractional CFO

1. Assess your company's specific financial needs: Use the form below to identify specific financial needs.

2. Define Goals: Define clear objectives and expectations for the role.

3. Interview Candidate: Interview our carefully-vetted candidate.

4. Establish Clear Communication: Set clear structures for reporting and communication.

5. Monitor Performance: Set measurable KPIs to track progress and impact.