Are you a business owner or nonprofit Executive Director frustrated with running day-to-day operations and spending additional weekends and evenings attempting to be both bookkeeper and CFO? A part-time or fractional CFO for small businesses is the answer you’ve been searching for.
What is a Part-Time or Fractional CFO?
A fractional CFO is a part-time CFO for small businesses (SMBs) and nonprofit organizations, often contracted in an outsourced capacity. Outsourcing a fractional CFO is a way to engage a CFO without the burden of hiring, and allows small businesses and nonprofits to access expertise and a financial skillset they might not otherwise be able to afford.
What Do You Get with a Part-Time or Fractional CFO?
Common responsibilities for a fractional, outsourced CFO include:
- Bookkeeping, month-end reviews, and preparation or oversight of monthly financials.
- Monthly and annual budgeting.
- Subsequent forecasting to ensure company and financial goals are managed and met.
- Communicating and negotiating with banks and financial institutions on debt and financing options.
- Working with CPAs on taxes and tax planning.
- Strategizing ways to maximize cash flow, invest profits, and manage lender relationships.
- Playing an essential role in hiring and training accounting staff.
- The advent of online and remote bookkeeping solutions has broadened the possibilities for SMBs and nonprofits to access affordable CFO services.
The advent of online and remote bookkeeping solutions has broadened the possibilities for SMBs and nonprofits to access affordable CFO services. A CFO who is available remotely expands the possibilities for hiring or contracting a part-time or fractional CFO by including candidates outside the company’s geographical area.
Why Your Company Needs a Part-Time or Fractional CFO
Financial skills, accounting, and bookkeeping require specific competencies, especially as organizations grow. Internal growth and market expansion require an enhanced skill set. Industry-specific CFOs bring a wealth of experience to growing or struggling companies. Specialty fractional CFOs understand financially complex businesses such as nonprofits, manufacturing, real estate, transportation, and construction, to name a few.
CFO Services for small businesses go beyond traditional bookkeeping and accounting services. An experienced fractional CFO can assume the role of advisor, mentor, and strategic thought partner. The CFO’s experience can provide insight, forecasting, and the second set of eyes when critical decision-making is required. (They can also hold you accountable!)
Fractional CFO services for nonprofits are a viable solution to the challenges nonprofits face in managing salaries and benefits. The nonprofit fractional CFO delivers specific knowledge of nonprofit, budgeting, tracking KPIs and metrics, board reporting, and most importantly, planning and forecasting. CFOs may have grant writing and grant management experience, as well.
What Does a Part-Time or Fractional CFO cost?
The cost of a part-time or fractional CFO can vary widely. Many factors contribute to discovering the right hire at the right price.
- Geographical area
- Your organization’s industry and service offerings
- Level of experience required
- Accounting or bookkeeping staff already in place
- Will you need tax preparation?
Just as your business or nonprofit is unique, so are the skill sets of various CFOs. Here is a quick checklist to help you through the interview and hiring process:
- List the accounting or financial management tasks and duties that you need assistance with.
- Estimate the number of hours per week or month you need the CFO. Perhaps you had a CFO or accounting manager in the past that may be available to help with this.
- Ask for references from prospective outsourcing agencies or contractors.
- Be comfortable with what you can afford and be mindful of that number during the inquiry process.
Build a Financially Healthier Business
Hiring a part-time or fractional CFO can be an affordable solution to managing financial and accounting tasks. Working with Capital CFO+ gives owners and leaders an essential competitive advantage. By outsourcing activities that are routine, administrative, or require specialized skills, you can focus your energies where you are needed most. With the burden and overwhelm of your financials and back-end bookkeeping tasks off your plate –you can be available to work on business growth and sustainability.
Your business. Your solution. Our Expertise.
Capital CFO+. Contact us for a free consultation.
About Capital CFO+
Capital CFO+ LLC is based in Saratoga Springs, New York, providing bookkeeping, accounting, and CFO services. Capital CFO+ helps small firms access the same economies of scale, efficiency, and expertise that large companies enjoy. Visit Pearl, our branch manager at capitalcfollc.com or LinkedIn for more information.