In a world that is becoming increasingly more online, with digital-first strategies and remote working being more popular than ever, we are becoming more accustomed to hiring people through the camera rather than the traditional in-person method. Arguably, financial roles are at the forefront of the digital outsourcing revolution. From hiring a digital bookkeeper to outsourcing your entire accounting team to a cloud system, a position we have seen becoming more popular in outsourcing is a Fractional Chief Financial Officer (CFO). However, what exactly is a Fractional CFO, and how can it transform your business? Let’s dive into it.
What is a Fractional CFO?
A Fractional CFO is a senior financial professional who helps businesses steer their financial decisions to ensure optimal financial health. They usually work on a fixed-term or contractual basis with the company that requires their expertise.
The nature of the business often dictates the time at which it will need the assistance of a Fractional CFO. For example, a smaller startup business that doesn’t require a considerable proportion of capital to get started might only require these services once a certain level of growth has been reached. On the other hand, a startup tech business typically requires large amounts of capital and funding from the on-set. As a result, they might need the help of a CFO at the very beginning of their new business venture to ensure that all financials are and remain to achieve maximum business success.
What duties does a Fractional CFO carry out for your business?
As far as your business financials are concerned, there isn’t much that a Fractional CFO can’t help or offer expert advice on. Being financial professionals in finance and most segmented into specific industries, there is no doubt that a Fractional CFO can genuinely transform your business. Here are some of the duties they carry out in businesses across the board.
Improved decision-making, tax and cash optimization
Knowledge is key. Knowing that you have an individual who is an expert in your field and has your best financial interests at heart is an invaluable factor in growing a successful business. In addition, it will naturally enhance the decisions made in your business. Often, input from an expert can mean the difference between wishing something to happen and seeing a vision being executed. Do you worry that you are not structured right or missing out on tax credits?
Improved Financial Planning & Analysis (FP&A)
Reviewing your financials will allow for strategic decision-making based on the business’s financial position. The plans you have for your business can easily be implemented based on accurate financial projections, and you can rest easy knowing that the most qualified person puts these projections and projects together. You might already have several systems and processes but don’t feel comfortable with the overall plans and/or need help mentoring your current team.
Company Scaling Up
In most companies, there comes a time when costs need to be increased or cut. However, it can be challenging for a business owner to know precisely where and in what department costs should be scaled up and which could be reduced. Sometimes, difficult decisions have to be made to reduce expenditure, but also to make strategic investments. A CFO can help you identify where your business is losing money and what could help enhance financial success.
Transitioning Solutions – Ownership, Leadership and/or Mergers & Acquisitions
There are some complex tasks that your business might eventually find itself undergoing, for example, an ESOP, merger or acquisition. These often come hand in hand with financial valuations and many external activities. Having a Fractional CFO overseeing all financial aspects of an organization is invaluable during these complex transactions. You don’t want an internal bias or external advisors not aligned with your people and legacy. How you structure and communicate with your team can have serious positive or negative outcomes.
Better market perspective
As we mentioned above, you will likely have the option of a Fractional CFO who is highly qualified in your business’s industry. Having someone with a different perspective or more insight into the market you are trading in is hugely beneficial. In addition, as Fractional CFOs are contracted, they will work with various companies within the same industry, offering much more insight into your business. Some people might also want someone from another industry to get more external perspectives.
Flexibility
One of the most attractive benefits of a Fractional CFO is the flexibility and ease of hiring one. As they work on a contractual basis, you can pick and choose when you need the assistance of one, which can help you manage your budgets and bring one into the business when required. You don’t have the risks and costs of hiring a full-time CFO, so it’s a mutually beneficial relationship to suit your needs.
Meet Sam McQuade & Panterra Finance
Sam McQuade is the owner here at Panterra Finance. Sam has successfully scaled his decades-old ideas into an innovative full-service Financial Partner Solution for incubators, startups, and emerging business concepts, as well as well-established international companies, corporations and organizations with the introduction of Panterra Finance. During pivotal transitions, the Panterra Finance professional executive team members are equipped to provide an industry-leading concept of an on-demand Fractional CFO. In disrupting the traditional contracted title of CFO, Panterra Finance innovatively offers all its clients thought leadership based on international financial market experiences. Panterra Finance provides a unified global approach to businesses in the Americas, Europe, Asia, and Africa.
The Fractional CFO and Interim CFO experiences gained by the executives assigned to these positions throughout Panterra Finance offer them a broad perspective of the dynamic changes in international markets. The part-time CFO executives at Panterra Finance have access to worldwide teams that are proficient in and have initiated innovative strategies in projects centred on Defi, Blockchain, Bitcoin, Ethereum, Crypto, Tokenization, ICO, IDO, and STO services.
If you feel your business could benefit from Fractional CFO services, we invite you to book a call by clicking the below button. It could transform your business. https://panterrafinance.com/get-started/