At a lower price-point, we add greater value than an individual fractional CFO because we leverage our full-stack finance and accounting – all under one roof. For larger companies with more complex board structures, independent board members must be free of conflicts of interest. At times, a corporate action could put a member at risk of being personally conflicted. In these cases, a fractional CFO can be parachuted in as an interim board member to oversee the event, free of any conflicts.

However, unlike a full-time CFO, who oversees and manages all financial operations, the duties of a fractional CFO can range from solving one-off tactical issues to serving as a long-term strategic financial advisor. This type of service can also assist with developing a comprehensive startup budget that considers projected revenues, expenses, and financial goals. They can also help the startup monitor its financial performance throughout the year and adjust the budget as needed.

CFO vs Controller: WHAT DOES A FRACTIONAL CFO DO COMPARED TO A FRACTIONAL CONTROLLER?

Hiring a full-time CFO involves the type of HR effort that most high-level, internal jobs necessitate, as well as the full gamut of onboarding, training and retaining. If a full-time CFO leaves for any reason, the HR cycle to fill the gap begins again. Fractional CFOs tend to work with a diverse range of clients across different industries and growth. From start-ups to enterprises, you can offer your expertise and guidance to a wide range of businesses. This keeps your work fresh and exciting, while allowing you to continue learning and growing as a finance professional.

If a CFO hasn’t worked with that specific business model they won’t provide in-depth expertise. Fractional CFOs with startup experience typically work with a variety of startups. Having a fractional CFO on your team can be incredibly helpful when making financial decisions. The amount of financial data companies require, and track can be overwhelming.

Fractional CFOs vs. FTE

On the other hand, an outsourced or fractional Controller is the head of accounting and oversees the preparation of balance sheets, income statements, and other financial reports. They also perform compliance audits, run the internal controls, assist the budgeting process, and analyze your companies’ financial data. Some companies also give their Controllers the responsibility of evaluating and selecting the technology used in finance departments. Fractional CFOs provide on-demand finance advice to startups and small firms. You can hire a Fractional CFO as a member of your team or simply bring one in for a one-time project such as financial modeling or pricing strategy.

• FullSend Finance is a company that provides a unique approach to financial planning and investment management.
• Fractional CFOS also helps you generate the reports you need to make effective decisions for your business.
• Growth means more transactions, additional expenses to keep up with production scaling, and more.
• Fractional CFOs are typically part-time and outsource their services on an hourly basis.
• We’re collaborative, explaining what the numbers mean, rather than just emailing reports.

As the company’s needs grow, the bookkeeper who can produce financial statements may not be skilled enough to produce a finance model or cash flow forecast. The software platform that specializes in accounting has limitations on how well it can do variance analysis on budgets to actual deviances. As a result of these gaps, it is quite common for fractional CFO or Controller to also play the role of strategic advisor to business owners and founders. A fractional CFO is mainly responsible for managing the financial actions of your company. This includes cash flow management, financial planning, and analyzing where a company’s financials are strong and where they are vulnerable.

Juxtaposition of CFO Responsibilities

Joining a professional organization or networking group can also help expand your network. Our free Slack community for finance professionals is a prime example of a thriving community that can help you build a strong network and find new opportunities. This includes understanding client needs, developing strategic plans, and communicating effectively. law firm bookkeeping If you lack these skills, consider taking courses or obtaining certifications to help build them. To become a fractional CFO, you’ll need a strong educational background in finance, accounting, or a related field. It’ll also help if you stay up-to-date with industry trends by attending conferences and seminars, and reading relevant publications.

Fractional CFOs most commonly partner with companies to help overcome financial challenges, achieve growth, optimize strategy, implement systems, raise capital, or navigate an audit or transaction. Through our proven retained executive search process, we find, vet, and deliver the top 1% of candidates for positions across the C-suite, including CFO, Chief Accounting Officer, and vice president of Tax. Our process works for all industries, including technology, healthcare, manufacturing, retail, real estate, financial services, credit unions, private equity, and more.