We understand that staying healthy is priority number one. However, we recognize many businesses are also facing sudden, unforeseen challenges affecting how they manage cash flow, remote operations, and their strategy during this time. We've seen similar challenges in the past, and are here to offer reassurance.
Focused Energy utilizes business information to home in on strategies and tactics to reduce stress, improve profitability, and increase a business’ chances of success. There are many ways our fractional or outsourced CFOs can work alongside a company's currently existing financial team.
What is a fractional CFO?
What, exactly, is a fractional chief financial officer? They serve as your consultant from virtual or outsourced CFO firms. They are an experienced CFO who works with organizations in an outsourced, part-time, retainer, or contract arrangement. This provides a company with the experience and expertise of a C-level finance executive without the in-house cost—salary, benefits, and more—of a full-time employed CFO.
Small to mid-sized business owners certainly know the importance of having employees dedicated to providing financial reports, insight and business strategy. It is also typically the case that these companies do not have the resources to employ a full-time, dedicated C-level finance executive. But where do virtual CFO services enter the picture?
Most growing enterprises do not need a full-time CFO as part of their staff at this point. Yet, most companies need supplemental assistance in overseeing the manifold of financial aspects of their business. In this scenario, a fractional CFO can be an invaluable asset to a company.
How Our Fractional CFO Services Help You Reach Your Financial Goals
Focused Energy’s interim CFO services are designed to help your finances grow. Our team comes from different industries and backgrounds, so they have a clear idea of what your business needs and how we can maximize your existing opportunities. Instead of simply presenting accurate data to you, our consultants provide the answers you need to boost your financial goals.
Our trusted advisors provide the financial insights and skill sets that your organization needs. We go over the details of your finances and study the implications of your financial decisions. Given this knowledge, we help you take more confident steps toward the future of your business.
Read through our shared CFO services:
- Budget Analysis and Planning
Our consultants give you sound advice on the fiscal aspects of your operations. We study your business strengths, weakness, and opportunities to help you create a feasible annual budget.
- Business Strategy
We’re invested in your organization’s financial health and stability. We create a business strategy that is patterned after your vision. We also recommend other CFO services that complement your strategy.
- Board Reporting and Representation
If you need us to step up, we provide board representation and reporting services. Our consultants can report in internal fiscal processes and take charge of investor presentation. Let’s arrange it for you.
- Cash Management
There’s more to your cash flow than making the payroll and paying the bills. Our cash management solutions make sure your organization always has cash-on-hand for steady operations and growth.
- Fundraising Planning and Support
It’s rarely easy to raise capital. Fundraising is one of the most frustrating times for any business. With our entrepreneurial experience, we help plan your fundraising initiatives and see them to completion.
- Exit Support (M&A and IPO)
The growth of your business depends on the extensiveness of your exit strategy. Whether it’s an initial public offering or a merger and acquisition deal, count on us for support.
Get a free consultation: fill out our contact form or call 844-413-6287 today.
Related reading: benefits of a virtual CFO
Fractional CFO versus traditional CFO
The fractional CFO is an outsourced chief financial officer whose duties and pay can be more easily scaled than a full-time, in-house CFO. A traditional CFO role would by definition include heavy involvement in determining the long-term goals and strategic decisions of a company. A fractional CFO, while also involved in steering the company in the right direction, would function in a more consultative role.
A full-time CFO generally manages and provides all general financial strategy and management. An interim CFO performs CFO duties before or between hiring a new CFO. A fractional CFO’s typically works on a project basis and tends to be specifically focused on a particular challenge or goals at a company.
Why Outsourced CFO Services are a Good Idea
Outsourced CFO companies harness data that is necessary to execute your vision. But the benefits of fractional CFO solutions go deeper than that.
The following are reasons to trust our consultants with your fiscal needs:
- You need help with accounting, bookkeeping, and financial forecasting
- You notice limited financial growth and are exploring organizational changes
- You’re creating a new business plan and aren’t sure of its long-term effects
- You’re planning to open your business for IPO, or are looking into a merger
There are many more aspects of finance that an outsourced CFO can do for you. Discuss your needs with an experienced consultant today.
What Does a Fractional CFO Do?
Fractional CFOs perform many duties related to the protection of the financial well-being of a company. They focus on helping a company in three main capacities. One is to work through financial challenges. Another is to attain forward facing financial support. This includes facilitating business growth, partaking in business planning and implementing financial systems. The last is helping companies to achieve their business goals. This often involves raising capital and preparing for a business audit, merger or acquisition.
Some services that they may provide to a company include:
- Financial Planning and Strategic Implementation
- Short- and Long-Term Financial Forecasting
- Fundraising and Debt Financing Advice
- Systems Strategy and Design
- Budgeting and Forecasting
- Expansion of Products, Services, or Geographies
- Cash Flow Optimization and Management
- Maximizing Margins
- Interim CFO Services
- Proposals for Sustainable Growth
- Merger and Acquisition Support
- Preparing for an Exit
Fractional CFOs have to be versatile in their skill set and have experience in a number of different fields.
Related Blog: Secret to Success: Outsourced CFOs
Benefits of a fractional CFO
What are some benefits that fractional CFOs can bring to small or medium-sized growing enterprises? There are several potential advantages to consider.
Related Blog: Four Benefits of Hiring an Outsourced CFO
The first, and perhaps most obvious advantage is revealed by comparing the average yearly salary of a traditional, full-time CFO with the average salary of a part-time, or fractional CFO. A fractional CFO costs roughly $200,000 less every year than a full-time CFO, and that does not necessarily include benefits or perquisites.
Secondly, the duties of fractional CFOs are much easier to scale up or down according to the business need. In a busy part of the fiscal year, a business owner may have them heavily involved in financial planning and oversight, whereas in slower parts of the year this level of interaction may be unnecessary. This ability to adjust as needed offers a big advantage over a traditional CFO.
An outsourced CFO can provide an outsider's perspective on the company's financial health, short-term decisions, and long-term strategies. In many companies, this is sorely needed. An in-house CFO may easily become complacent, favor certain internal or external relationships above the company's interests, and be biased in preferences on strategy. A fractional CFO on the other hand, is less influenced by office politics and culture. They can provide a fresh, clear perspective on matters.
How a fractional CFO can work with your team
There are many ways a fractional CFO can work alongside a company's currently existing financial team. If a hierarchy of financial officers is already in place at a company, (for example, the company already employs a CFO, CPA, bookkeeper, or other accounting employees), then a fractional CFO would function largely as a consultant and fellow strategist. However, if that infrastructure is not in place, then a fractional CFO, along with other outsourced accounting professionals, can fulfill all of those duties as well, depending on the need.