Be sure to discuss these costs with the CFO upfront to avoid any surprises. Bank Restructuring Advisory is the process of understanding your history with your bank. It also focuses on understanding the questions that your bank may potentially have. Natasha transitioned law firm bookkeeping to venture capital after a career in banking built in prestigious firms such as JPMorgan and ESM. Allow us to help you determine if our team/system is right for your office. Call or send us an email using the form below and we will reply promptly.

• When the coronavirus crisis hit, businesses were in survival mode and had to, in a sense, “triage” the situation.
• The CEO’s Right Hand takes charge of your finance, accounting, human resources, and other foundational functions so you can focus on what you do best – running your company.
• A fractional CFO can help create a go-to-market strategy by providing revenue forecasts, analyzing market trends, developing pricing strategies, and developing financial models to ensure your launch is financially viable.
• Full-time CFOs require a high salary, an average of $420k per year, plus benefits.
• Reporting and planning, to cash flow management, budgeting, forecasting and more.

So when factoring in bonuses, benefits, equity, and overhead — you could be looking at over $300,000-$400,000 annually. That means hiring a CFO on a part-time basis can easily deliver over 50% in cost savings. Companies bring in a fractional CFO for this work because they lack the resources or skills to tackle such financial challenges. Or, they want an outside, unbiased opinion to inform their financial strategy.

Make More Informed Business Decisions

“Ideally, a fractional CFO should work with other management team members to drive strategy, not just closing the books and providing management reports,” says Jung, a Goldman Sachs and McKinsey alum. Fractional CFOs—highly-experienced finance chiefs who work contractually—are increasingly in demand. But what would make a finance leader who has worked on a full-time permanent basis at multiple companies pivot to becoming a fractional CFO?

This will provide you with a lower hourly cost and stable monthly payments while giving them predictability in their monthly income. Without Shiny, the process will look like a standard candidate hiring process, except it should be more rigorous. The CFO position needs to be filled by someone who is a great fit, so don’t settle for someone who is a decent fit.

#2 You Want to Build Efficient Accounting Systems

Instead of getting lost in the numbers, you can focus on making data-backed decisions based on what your fractional CFO provides. Startup fundraising can be tricky, and one of the biggest challenges startups face. But, a fractional CFO can bring the necessary expertise to make it easier. They can help you build your investor presentation, set financial goals and budgets, and identify potential investors. Generally, between $10 million and $50 million of revenue is when financial functions gain more complexity. When revenue is scaling up at this fast-moving stage, there is likely a need to establish long-term stability on the finance team.

Fractional CFOs often command competitive compensation rates, thanks to their specialized knowledge and experience. If you have a unique skill set or expertise in high-demand areas, you can earn top dollar for your expertise. You can choose the clients you work with, set your own rates, and determine the scope and nature of projects you work on.

Large business

Usually, small and mid-size businesses hire fractional CFOs because they are operating on a small-scale, and thus, they don’t require full-time professional CFO assistance. In addition, the scope of work can expand or shrink, along with the cost of services. It is common during leveraged buyout (LBO) processes to change the companies’ management structure.

• For fractional CFOs, this typically means having a Fractional CFO Services Agreement that outlines the scope of services, duration of engagement, fees and compensation structure, and other important details.
• The convenience of getting access to the support of an expert CFO in minutes rather than months—along with the lower prices of short-term commitments—makes fractional CFOs a popular option for startups.
• This keeps your work fresh and exciting, while allowing you to continue learning and growing as a finance professional.
• This could range from simply advising the CEO on financial matters to taking on 2-3 responsibilities of the full-time CFO.
• Attend finance events, connect with other financial professionals, and build your online presence.

Employee Compensation Framework is a process grounded in your Annual Operating Plan, employee reviews, and capability or capacity gaps to achieve your corporate goals. Accessing Capital is finding the right capital from the right lenders or investors to fund your business. This can include conversations with banks, venture capitalists, private equity funds, or mezzanine lenders. It is an all-consuming effort, touching all core functions within the business.

With these documents, you can allocate your budget better, prepare for the future, track your team’s performance, and give investors a big-picture POV. Hiring a fractional CFO is a cost-effective alternative that provides the strategic guidance of a full-time CFO. A fractional CFO makes efficient decisions based on your startup’s financial health.

With the guidance of a fractional CFO, your business can grow, operate smoothly, and make strategic decisions with confidence. Additional regulation, such as reporting, compliance, and disclosure obligations, requires specific and professional skills. The ramifications of under-reporting or misinterpreting rules can be financially and reputationally disastrous, so it’s always best to over-prepare. A fractional CFO can unburden the CEO and senior management of these requirements while assuring external stakeholders that the task is being handled appropriately. A modern CFO’s responsibilities are varied and complex; thus, each company’s role requirements will vary depending on their situation.