Money is the fuel of every business; it takes a good CFO to know exactly where that fuel comes from and how future decisions will affect it. A good CFO is an indispensable resource to any business owner, and fractional CFOs can provide financial expertise at an affordable price for any business.
A good CFO can take the financial information created by a finance team, verify its accuracy, and then make projections about what it means for the business in the future. It’s that ability to look ahead that sets a CFO apart from other finance roles. They are the ones responsible for creating an effective financial strategy. An effective financial strategy is both a roadmap for normal times and a gauge against when to assess new opportunities. A business owner shouldn’t have to guess how certain decisions will play out.
Your financial strategy should give you a set of variables to play with that help you envision the future state of your company. And even more, that financial strategy has to line up with, support, and enhance the overall business strategy. Many accounting professionals are not comfortable making predictions about what’s to come. Accounting is, by nature, historical record keeping. Necessary and important, of course, but historical. But it takes an entirely different set of skills to look into the future based on these past activities. That’s what a good CFO can do.
The ability to create an effective financial strategy requires experience, and experience comes at a price. A fractional model means that instead of working for one large company, an experienced CFO works for multiple small companies. A fractional CFO allows a business owner to pay for that ability without the burden of hiring that person full-time.
There are many advantages to hiring a fractional CFO. Primarily, they can bring a high level of financial expertise to your business at a cost you can afford. A CFO is responsible for interpreting financial data in a way that helps business owners make decisions for the future. A fractional CFO also brings a unique perspective, one that is broadened and enhanced from working with multiple businesses.
Take a deeper dive into the value that part-time expertise can provide SMBs in this article from Mentors Collective, or learn more about partnering with one of our fractional CFOs.