How to become a fractional CFO

The Controller is responsible for ensuring the financials are telling the right story so the CFO can correctly guide you and take your business to the next level. They also suggest business improvements that help achieve your goals for the business. At TGG, the Controller is the Client Lead and Project Manager for the client engagement to help manage both the TGG and internal (client employee) teams. Companies at $5mm to $75mm requires some CFO services, but they can’t justify adding a high-cost, full-time CFO position to their payroll. Instead, an outsourced CFO usually bills by the hour (saving your company the high cost of salary plus benefits). Fractional CFOs are often brought into an organization when there are financial challenges that the company’s existing team does not have either the skills or manpower to overcome.

A company could outsource the Controller role to manage their day-to-day accounting operations, while working with an outsourced CFO to develop and execute their financial strategy. For CFO candidates, prioritize those with experience managing finances for a company of similar size and complexity to yours. Look for Controllers who are proficient in accounting software and have experience with internal controls and financial reporting. While the Controller versus CFO debate continues, becoming a CFO requires a broader skillset than a Controller. A Controller must develop additional skills and expertise to succeed in a CFO position, such as business strategy, leadership, and financial planning.

Bottom Line: What’s Right for my Business?

At a big company with a full-time CFO, that individual has a team to take on various responsibilities; the CFO manages and reviews the team’s work. If we must use the term “fractional CFO”, we think of it as a way to get exactly what your company needs at a fraction of the cost of having a full-time CFO. As such, these solutions quickly become insufficient in supporting all of the company’s needs and become bottlenecks for growth. Whether you’d like to be a fractional CFO and stay with a company for a couple of months or years or be a permanent full-time finance chief, there’s no lack of opportunities as CFOs are in demand. “An advantage is that you can kind of stay above the fray of office politics because you’re an outsider,” DeGolier says.

Having a fractional CFO on your team can help strengthen relationships with these key stakeholders and ensure they’re comfortable trusting you to provide financial transparency. Additionally, if your startup is hitting speed bumps, your CFO will find solutions and present them to the board. At the end of the day, your fractional CFO will effectively become the financial voice of your company and (in some cases) possess the authority to make decisions. Therefore, it’s critical to find someone with a solid professional reputation that you can trust implicitly. At The CEO’s Right Hand, our fractional CFOs have decades of experience across multiple industries.

The Benefits of Hiring a Fractional CFO

Some companies require the services of a CFO, but they don’t have the means (or need) to fill that role with a full-time employee. There are many more reasons to enlist fractional CFO services, so https://www.bookstime.com/articles/fractional-cfo it’s best to discuss with an advisor, your board of directors, or a finance professional. Fractional CFOs are also helpful in optimizing or implementing more forward-facing financial visibility.