Signs Your Business Needs a Fractional CFO

August 11, 2022

Fractional CFOs are increasing in popularity among startups and small businesses. These professionals have extensive business management and financial expertise that can aid companies on a part-time or project basis.

The benefits of hiring a fractional CFO are numerous, but how do you know if it’s the right time for your business? Consider these signs your business needs a fractional CFO.

What Is a Fractional CFO?

A fractional CFO is another term for a part-time CFO. This is someone who uses their financial expertise to serve a business (usually a startup) on a contractual basis.

Fractional CFOs are typically used in two different scenarios:

  • To help startups get on their feet
  • To help small companies get professional accounting and finance services without committing to a full-time hire

Fractional CFOs can help you create a professional financial strategy, laying the groundwork for more consistent profits.

Top Signs Your Business Needs a Fractional CFO

Here are some reasons you should consider hiring a fractional CFO if you run a small business or startup.

You Need Help with Bookkeeping and Accounting

Bookkeeping and accounting are foundational aspects of any business. If you're too busy to perform these tasks internally or find them overwhelming, you could benefit from hiring a fractional CFO.

Bookkeeping is essential for your business as it:

  • Helps you budget your business finances accurately
  • Keeps you prepared for tax season
  • Keeps your business records organized
  • Enables you to forecast trends for business success
  • Keeps you up-to-date on government regulations

Without these puzzle pieces, it's challenging to have peace of mind as a business owner.

You’re Not Sure How to Forecast Trends

Forecasting consumer trends is also crucial to any business. These trends help you identify and plan for inventory, allocate your budget, and plan for unexpected expenses.

Forecasting uses historical data to create informed estimates to predict your company's direction. A fractional CFO can perform this function or provide you with another set of eyes so that your business is set up to optimize profitability.

You Want to Get More Effective in Managing Debt

Whether you're getting into new debt or refinancing old debt, a fractional CFO can help protect your investments and assets.

Your fractional CFO can help you negotiate bank loan terms and plan strategic investments. They can also assist with fundraising initiatives, which are vital for startups that rely partly on fundraising to get up and running.

Budgeting Isn’t Your Strong Suit

Budgeting and other decisions regarding your business's budget can be complicated. And if you're at the helm of a high-growth company, you may need help determining where cash will be best spent.

A fractional CFO can help you evaluate projects and make informed decisions about where funds should go, freeing you up to handle other aspects of the business.

Finding the Right Fractional CFO

Identifying the need for a fractional CFO is only half the battle — the other half is hiring the right one. works with a network of expert fractional CFOs who could be an asset to your business. Contact us today to start your accounting review and assessment.

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