What is the Difference between a Part-Time, Fractional, and Interim CFO?

A fractional CFO is an experienced CFO who provides services for organizations in a part-time, retainer, or contract arrangement. This offers a company the experience and expertise of a high-end CFO without the in-house cost—salary, benefits, and bonuses—of a full-time CFO. CFO Hub provides fractional CFO services for businesses ready to take their brand to the next level. We offer full-scale financial services to companies of all sizes, assisting with responsibilities including routine bookkeeping, audit preparation, regulatory compliance, and controller services.

• For many fractional CFOs, one of their most important contributions will be providing a financial forecast that will act as a blueprint to achieve the growth in the most efficient, accelerated, and sustainable way possible.
• Based in Boulder, CO, Solid Ratio is a team of Chief Financial Officers, Controllers, Analysts & Accountants with over 20 years of experience who also help businesses optimize their people, processes & technology.
• An older, midsize company might need help to prepare for an audit or complete a strategic analysis.
• If you’re looking to accomplish a specific goal, it is essential that the CFO has done it before and can share the results.
• New Life CFO sources contractors with a wide variety of industry experience who have served at least ten years as full-time CFOs.
• Our experienced personnel will provide the guidance you need to align your goals and elevate your business.
• They can also help you identify your business’s most appropriate funding sources and assist with fundraising.

They typically report to a CFO, but in some cases, the responsibilities of the position are combined, especially in smaller companies. While larger businesses can spread financial responsibilities around, small businesses tend to put more tasks on one person’s list. Financial forecasts are estimates of a company’s future financial performance based on historical data and expected future economic and market conditions. A fractional CFO can provide budget forecasting services to help you plan for the future. Using data and analytics helps you develop a more accurate and reliable view of the future for your business so you can plan ahead.

CFO vs Controller: WHAT DOES A FRACTIONAL CFO DO COMPARED TO A FRACTIONAL CONTROLLER?

A fractional CFO brings the same credentials and experience as an in-house CFO, providing a cost-effective way to get the senior-level, hands-on finance supports your business needs at the level you need it. With the current trend of companies opting to operate lean and agile, the marketplace for expert support in non-full-time equivalent roles in startup and small to medium businesses have been growing quickly. Fractional CFOs tend to work with a diverse range of clients across different industries and growth.

Different from a CPA who relies on historical information, a CFO makes predictive recommendations through their financial analysis.

Benefits of Hiring a Fractional CFO

A finance professional is one of the most important people to have in your corner as you expand. But, if your business cannot afford a full-time accountant yet, consider a fractional CFO. With fractional leadership, you only pay for what you need, and (depending on who you use) they may also be able to provide fractional resources for other financial tasks, such as bookkeeping. For example, Brownsworth Incorporated, under the parent company Forbinde Hold, needed high-level executive advice on whether to hire a full-time CFO or go the fractional route when their CFO of 20 years left the company. On the surface, these may simply seem like different titles for the same role, as there is a lot of crossover between definitions. Understanding your needs and goals will help you ask the right questions so you can make the most valuable hiring decision.

As you might expect, the monthly cost depends on a number of factors, such as hourly rate, complexity of tasks, and breadth of responsibilities you assign your Fractional CFO. To become a fractional CFO, one typically needs at least 15 years of experience working in finance and at least a few years of prior experience as a CFO or VP of Finance. Occasionally, you might find a fractional CFO with fewer than 15 years of experience.

What is a Fractional CFO? Does My Business Need One?

Having a finance expert on the team from the start helps in ways that founders typically don’t realize until they hire a fractional CFO. Typically, a company will hire a fractional CFO to provide the same services that large companies get from a full-time CFO, but at a lower cost. A fractional CFO offers the knowledge and expertise of a high-end CFO at a portion of the cost.

A lot of times, a good CFO will take the lead in finding creative ways to fund key business operations. Consider gaining experience in different sectors to broaden your skills and expertise. This can include taking on consulting or advisory law firm bookkeeping roles, or even volunteering your services to non-profit organizations. It is of particular importance when a business is in its growth stage that the growth be managed carefully, as growing at too quick of a pace can be risky to a business.