There is a reason why established corporations have a large C-suite. Different executives take on different responsibilities, working together to steer the company towards greater success. One of the most important is the CFO, or Chief Financial Officer, who takes control over all the logistics related to a business’s financial future.
A CFO is crucial to running a successful business, but up-and-coming businesses and start-ups usually can’t afford to hire an extensive C-suite. That’s where a fractional CFO comes in. Here is your guide to this role and why your business may need one.
What Does a CFO Do?
First, it helps to establish what a regular CFO’s role is inside of a company. The Chief Financial Officer oversees everything that has to do with a company’s finances, including investments, expenditures, and budgets. The CFO stays on top of a company’s earnings and spending, always having an accurate picture of the company’s financial health.
The CFO also makes financial planning decisions for the future and reports predictions for a company’s financial health.
What Is a Fractional CFO?
A fractional CFO is someone that does the job description of a CFO, but only works with a company for a limited time. They may hire on for just a specific project, when preparing for a round of fundraising, or as a consultant for a business getting ready to launch.
Fractional CFOs are a good solution for businesses that need financial support, but don’t have the budget to hire a C-suite executive full-time.
