Considering Hiring a Fractional CFO?

Henry Sack • December 16, 2022

Here's what you need to know...

A Fractional CFO is an outsourced chief financial officer who provides professional and strategic financial advice on a part-time or project basis. Fractional CFOs can offer companies an economical way to access experienced finance management when full-time, in-house resources are not available or not within the budget of the company.

Hiring a Fractional CFO can be beneficial to businesses of any size, from small startups to large established companies. Fractional CFOs bring a wealth of experience and expertise in financial management that can help businesses make sound decisions related to their finances.

What Does a Fractional CFO Do?

Fractional CFOs can provide a variety of services, such as financial planning and analysis, budgeting and forecasting, cash flow management, cost reduction initiatives, risk management plans and financial reporting. Fractional CFOs also work closely with CEOs to develop strategic plans that help businesses achieve their long-term goals.

Financial Planning and Analysis

Fractional CFOs can provide businesses with financial advice and analysis to help them make well-informed decisions about their finances. Fractional CFOs also work closely with companies on budget planning, performance management and cost control initiatives.

Budgeting and Forecasting

Outsourced CFOs can provide businesses with budgeting and forecasting services to help them plan for the future. Fractional CFOs also work closely with businesses to develop financial models that can be used to forecast business performance and cash flow over a certain period of time.

Cash Flow Management

Fractional CFOs can provide businesses with advice on how best to manage their cash flows. Fractional CFOs can also provide businesses with insight into their liquidity position and help them identify potential cash flow problems and identify opportunities for improvement.

Cost Reduction Initiatives

Outsourced CFOs can provide companies with advice on how to reduce costs and maximise profits. Fractional CFOs can also work with business owners on strategies to increase efficiency and reduce operational costs.

Risk Management Plans

Fractional CFOs can provide businesses with advice on how to manage risks associated with their finances. Fractional CFOs can help businesses identify potential areas of risk, develop strategies to mitigate those risks, and develop contingency plans in case of a financial emergency.

Advanced Financial Reporting

Fractional CFOs can provide businesses with sophisticated financial reporting and analysis tools aligned to the needs of your business and industry. Fractional CFOs can help companies understand their finances on a deeper level, identify areas of opportunity for implementing better controls, and develop strategies to maximise the bottom line.

Things to Consider Before Hiring a Fractional CFO

When hiring a Fractional CFO, it's important to consider your business's specific needs in order to be able to identify whether your candidates possess the necessary experience and education to help you improve your financial management function.

Some things to consider include:

Do they have experience in your industry?

Having relevant industry experience is always beneficial as Fractional CFOs can provide valuable insight into the competitive landscape, financial trends and risks, and other business opportunities.

Do they have a proven track record of success?

It's important to ask potential Fractional CFOs for references and samples of their work. This will give you an idea of how successful they have been in past projects, as well as their overall approach to financial management.

How much do they charge?

Fractional CFOs typically charge hourly fees for their services; however, many Fractional CFOs may be willing to negotiate a flat fee or a retainer depending on the scope of the project.

Are they familiar with your current accounting systems, processes, and procedures?

Familiarity with your current accounting systems, processes, and procedures is important as Fractional CFOs need to be able to integrate seamlessly into your existing operations.

Have they worked with similar clients in the past?

It's also important to consider whether Fractional CFOs have worked with similar clients in the past. This will give you an idea of their level of expertise and how their approach is adapted to the needs of businesses similar to yours.

What results have they been able to achieve in similar businesses?

Fractional CFOs should be able to provide tangible results they have been able to achieve in businesses similar to yours. Showing evidence of this will give you confidence that they can deliver the same results for your business.

Do they have an understanding of the current regulatory environment you operate in?

It's important to ensure Fractional CFOs have a good understanding of the current regulatory environment your business operates in. This will help them provide more tailored advice and strategies that take into account any legal restrictions or guidelines your business needs to adhere to.

In Summary

Hiring a Fractional CFO can provide businesses with invaluable advice and support on how to manage their finances more effectively. To get the most out of Fractional CFOs, it's important to consider their experience, track record, fees and rates, familiarity with your accounting processes and procedures and past clients and projects. By asking the right questions, you can better understand how they will fit into your existing team and the level of support and advice they will be able to offer.

About TeamBlueSky's Fractional CFO Services

TeamBlueSky's Fractional CFO Services provide businesses with the financial expertise they need to navigate today’s complex business environment. Our Fractional CFOs are experienced professionals with backgrounds in accounting and finance. We can help you create a comprehensive budgeting and forecasting process that takes into account legal restrictions as well as industry trends. Our Fractional CFOs are also highly experienced with the latest ERP and accounting software, including NetSuite and J Curve, as well as a number of other business software packages, so you can be sure that with our help, your business is staying on top of its financial management. Contact us today to learn more about our Fractional CFO services and how we can help improve your business’s bottom line.

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Henry Sack

General Manager

With over 12 years of experience as a NetSuite implementation consultant, Henry Sack leads TeamBlueSky’s team of NetSuite and accounting experts in his role of General Manager.

TeamBlueSky is a leading Australian NetSuite Alliance Partner whose mission is to provide critical NetSuite BPO and Payroll services to NetSuite clients who are wanting to simplify their back office processes and partner with a leading NetSuite administration expert.

TeamBlueSky have also partnered with global Suite Developer Network partners to offer local solutioning, implementation and support services for global NetSuite SuiteApps.