What Is a Fractional CFO?
A fractional CFO is an executive-level employee who operates as a business’ financial expert. Their financial expertise may involve offering relevant advice to the other executive team members and outlining high-level plans and roadmaps to achieve financial success.
Since the CFO is “fractional,” they offer their financial expertise part-time or as needed. Most fractional CFOs have at least several years of experience working as financial advisors/executives for other companies.
A fractional CFO is also referred to as a:
- Part-time CFO
- Remote CFO
- Interim CFO
- Outsourced CFO
Table of Contents
- What Does a Fractional CFO Do?
- How Are Fractional CFOs Different from Full-Time CFOs?
- When Should You Use a Fractional CFO?
What Does a Fractional CFO Do?
Fractional CFOs are primarily concerned with two things:
- Outlining the company’s financial plan, and
- Helping that plan become a reality
They may accomplish these goals by a variety of means, such as:
- Communicating with connections who may want to invest and provide capital (applicable for startup ventures)
- Planning for a company’s financial future
- Overseeing the accounting department of a business
- Performing strategic analyses of companies’ financial well-being
- Working with internal accountants and controllers to create and review financial reports
- Offering relevant advice
How Are Fractional CFOs Different from Full-Time CFOs?
Full-time CFOs and fractional CFOs both complete similar tasks. However, since fractional CFOs work on an as-needed basis, they do not typically receive the same salary and benefits package as their full-time counterparts.
When Should You Use a Fractional CFO?
Fractional CFOs are ideal for:
- Businesses that can’t afford a full-time CFO but need help with a particular situation, such as a financial audit or an acquisition
- Startups and other companies that need help defining financial missions
- Companies that need help balancing the financials of a specific project
- Organizations seeking a new full-time CFO but looking for financial support in the interim