Why Your Business Needs a Fractional CFO

Why Your Business Needs a Fractional CFO

Why Your Business Needs a Fractional CFO

When it comes to c-suite positions, a CFO is at the heart of every business. The Chief Financial Officer acts as a vital lifeline for the business, ensuring every aspect of its financial operations. It’s your CFO that will help your business tick by day by day and achieve its long-term goals.

It’s a common misconception that only Fortune500 companies or those listed on the stock exchange can afford a Chief Financial Officer. It’s often start-ups and SMEs that need a CFO most. Many are put off the idea of adding a CFO to their business because they expect them to be one of the most expensive employees on their payroll – but they don’t have to be.

You don’t have to hire a CFO on a full-term basis. A fractional CFO will allow your business to benefit from their experience without paying a full-time salary. If you want to expand your c-suite leadership without the financial burden of a full-time staff member, then a fractional CFO is the perfect option for your business.  You might be interested in: How the UK Fractional CFO Market is growing?

What is a fractional CFO?

A fractional CFO is a c-suite position where a financial professional works on a contractual basis for a company, usually a start-up or an SME. These professionals usually have extensive experience with previous CFO roles and work with companies on short-term or temporary assignments.

Unlike full-time CFOs, most fractional CFOs work for multiple businesses and organisations. A fractional CFO can be hired for a specific project or to help you overhaul your business.

The role a fractional CFO plays in your business

The role of CFO is one of the most diverse of any c-suite position. Finance is the backbone of their work – covering everything from daily budgeting to accounting and financial reporting. As companies grow, they often outgrow working with an accountant and need to bring their financial management in-house.

As a CFO oversees your business’ finances, they’re also responsible for creating a strategy to meet your growth goals, including fundraising. Strategy is what sets fractional CFOs apart from other financial professionals, such as accountants. You can hire a fractional CFO to go in and overhaul your existing strategy and curated a strategy that is a winning formula for your business.

Once a strategy is in place, a fractional CFO will oversee its implementation. As your business starts to grow, you’ll need to implement more systems that are in-line with your strategy. A fractional CFO will call upon their experience to ensure that every new system is implemented as seamlessly as possible and without impacting the rest of your business.

Fundraising is one of the top priorities for any CFO. As your business expands, you’ll need to find new sources of working capital. You can hire a fractional CFO to oversee your fundraising efforts – from valuing your company to finding potential investors.

A CFO can also help your business to navigate a transition or carry out an audit. Internal audits are a way of spotting problems within your organisation before they become large-scale. While most internal audits are legally mandatory, others can focus on the systems in place. Auditing is a task that most entrepreneurs aren’t familiar with and hiring a fractional CFO can bring a fresh pair of eyes to your business. You might be interested in: How to become a CFO a step by step guide from FD Capital Recruitment.

Why you should hire a fractional CFO

Hiring a fractional CFO can be a game-changer for your business. The main benefit of hiring a CFO on a fractional basis instead of full-time is the cost. If you’re a start-up or a business with limited assets, a fractional CFO can give you access to the expertise that you need without adding another c-suite employee to your payroll.  The majority of our CFOs are ICAEW qualified.

Many fractional CFOs come from an extensive financial background and have worked with companies across different industries. Most fractional CFOs are offering their experience on a freelance basis as it gives them the freedom to work with a diverse list of clients. As freelancers, fractional CFOs have extensive experience in dealing with all sorts of scenarios and are used to being proactive in their thinking.

One of the biggest benefits you’ll get from hiring a fractional CFO is the flexibility that it offers. When you hire a CFO on a temporary or fractional basis, you’re not committing yourself to add a new permanent c-suite executive to your team. Many start-ups have lost their way or become the victim of internal disagreements between c-suite executives who don’t share the same vision.

Hiring a fractional CFO means that you can focus on the rest of your business. You can delegate responsibility to your new CFO to oversee your fundraising and financial strategy, giving you back time and energy to grow your business.

How to hire a fractional CFO

Hiring a fractional CFO is just like hiring for a full-time position. You want to find the right candidate for business, someone who will gel with the rest of your team, and help you strive towards your future goals. At FD Capital, we work with start-ups and SMEs to help them find the fractional CFO who will fit right into their team.

You’ll want to hire a fractional professional who has experience within your specific niche or who can undertake any specific projects you have in mind, such as auditing or fundraising. As one of the leading recruiters for CFOs, we’ve helped hundreds of our clients grow their businesses with the help of a fractional CFO.

Our team will draw up a shortlist of candidates and help you find the one that ticks all the boxes. You’ll find potential candidates with experience in almost every industry within our portfolio, from tech start-ups to the healthcare sector.

Hiring a fractional CFO is a win-win scenario for any start-up or SME. You can get all the benefits of having a CFO on your leadership team without making the financial commitment of hiring a full-time c-suite employee.

Are you ready to take your business to the next level? Contact us today to start the recruitment process for your fractional CFO.

Call us today for a no obligation initial discussion

CALL 020 3287 9501