Hiring a fractional CFO is an important decision. It’s not just about saving money but hiring the right person to be an integral part of your business. Hiring the wrong person could mean disaster for your company and could lead to financial ruin. So before you take any steps in that direction, here are five questions you need to ask the prospective fractional CFO.
1. Do You Work in My Industry?
Some CFOs are industry-specific which means they may not have the capabilities to handle any specific work that is unique to your industry. However, one of the things that make our firm best is that we are industry agnostic. We have the skills needed regardless of what the industry is.
2. What Kind of Reporting Will I Get?
Different fractional CFOs provide different levels of reporting. Some might provide only the bare basics, like monthly financial statements, while others will actually develop ongoing reports customized to your company’s needs. The best fractional CFOs are flexible enough that they can tailor their reporting to meet your company’s needs.
3. What Are Your Communication Skills Like?
Hiring the right fractional CFO is more than just hiring someone with the right skillset. They also need to communicate effectively with everyone on your team, including executives, managers, and employees. The best fractional CFOs are great listeners, and they will provide solutions rather than problems.
4. How Will Our Company Benefit From Working Together?
For a fractional CFO to be effective, they need to see how they will benefit from working with your company. The best fractional CFOs will have an overall vision of what your company can gain from their involvement, and you should feel confident that their knowledge and expertise will add value to your company.
Statistics show that only about 50% of startups survive their first five years of existence. The reason for this high failure rate is usually a lack of proper guidance in the initial years. With a fractional CFO, startups can be assured of proper guidance to achieve their goals effectively. When you are ready to get started, reach out to Nexagy for that guidance.