March 12, 2023

What does a Fractional CFO Do?

Most fractional CFOs bring both large and small company experience to the table. They understand which processes and tools you should implement at different business stages. They often only need 4-6 hours a week to deliver direction and monitor the financial health of the business. They partner with accountants and controllers to deliver the data CEOs and Boards of Directors need, without the expense of a full-time equivalent, or FTE, employee. A select group of these CFOs are very successful at building and presenting your business case to venture partners, private equity companies, and investors. Many have raised $10s of millions of dollars. 

Some of the deliverables fractional CFOs can work on for you:

  • Fundraising to support growth
  • Setting up regular financial reporting practices and systems
  • Making sure financials accurately reflect the state of the business
  • Compliance to local and national laws on reporting
  • Completing or managing tax returns
  • Working with creditors, investors and board members 
  • Cash flow modeling 

Typically a fractional CFO can deliver all this in one day or less per week, making the full-time CFO obsolete.  Fractional CFOs are not inexpensive on an hourly basis, but the value received far outweighs the full-time choice. Check out this case study of a company that split the full-time CFO role into two fractional roles and got better performance at a lower cost.