As a business owner, you understand the importance of having a financial expert on your team. But what do you look for when hiring a fractional CFO? In this blog post, we’ll discuss the key qualities and skills to look for in a fractional CFO.
What is a Fractional CFO?
A fractional CFO is an experienced financial executive who provides part-time or project-based services to businesses. They are typically hired on an as-needed basis and can provide expertise in areas such as budgeting, forecasting, cash flow management, and more. This type of arrangement allows businesses to access the expertise of a CFO without having to commit to full-time employment. Which can be a huge asset to small businesses who can benefit from having access to a financial expert but don’t have the budget for a full time team member.
As a business owner, you might be concerned that a fractional CFO might not be as committed to your company as a full-time team member. Still, statistics show their ability to make a difference contributes to their job satisfaction, and the relationships they build with their employers are the key factors in their desire to work with a company. Fractional CFOs are an underutilized resource that can make the difference between financial success and failure.
Key Qualities of a Fractional CFO
When looking for a fractional CFO, it’s important to consider the following qualities:
1. Financial Expertise: The most important quality of any fractional CFO is their financial expertise. Look for someone who has experience in areas such as budgeting, forecasting, cash flow management, and more. It’s also important to make sure they have experience working with businesses in your industry or similar industries.
2. Strategic Thinking: A good fractional CFO should be able to think strategically about your business and provide advice that will help you reach your goals. They should be able to identify potential risks and opportunities and provide insights that will help you make informed decisions about your business’s future.
3. Communication Skills: Communication is key when working with any financial executive, so it’s important that your fractional CFO has strong communication skills. They should be able to explain complex financial concepts in easy-to-understand terms and be comfortable discussing their ideas with other members of your team.
4. Flexibility: A good fractional CFO should be flexible enough to adapt their services based on the needs of your business at any given time.
Benefits of Hiring a Fractional CFO
One of the biggest benefits of hiring a fractional CFO is cost savings compared to hiring a full-time employee or consultant for the same services. You only pay for the services you need when you need them, which can help reduce overhead costs significantly over time.
Another great benefit of a fractional CFO is that you have access to experienced financial expertise without having to commit long-term or pay expensive consulting fees upfront. Or spending years becoming an expert yourself. This allows you to focus on running your business while still getting advice from an experienced professional when needed.
One of the biggest benefits to hiring a good fractional CFO is that they can help you to scale up or down depending on your needs at any given time without requiring long-term commitments from either party involved in the arrangement.
Hiring a Fractional CFO can be a game changer for your business. You can benefit from sound advice and strategy from experts who understand your field. If you’re ready to grow your business to the next level, or you just need some trusted advice as you navigate through the next season for your business, we are here to help. The experts at Nexagy have a proven system and years of experience helping businesses. Contact us today for more information.