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Business Finances: When Should You Look Into a CFO for Hire?


A chief financial officer (CFO) is one of the most important figures in any company. According to Forbes, a CFO must fully understand the business they’re working for, inside and out. That’s because these individuals are tasked with the most crucial financial decisions of the company which includes financial planning, financial management, limiting hidden costs, revenue generation, overseeing cash flow, and so on.

Being responsible for the financial leadership role of a business is no easy task, which is why a CFO is a vital asset in the business world. However, at times, businesses don’t want to hire a CFO in a full-time role. Instead, they look into the option of hiring a fractional CFO.

A fractional CFO or a CFO for hire, is an experienced finance professional who has either worked as a CFO previously, or in an equally high position at the finance department of a business. They’re hired for a part-time, contractual, or project-based role only when the company hiring requires additional resources to manage its financial operations.

As explained by CFO Share, fractional CFOs give businesses of all sizes, including startups, the opportunity to work with an experienced finance professional. Under their guidance, these businesses tend to grow a lot bigger and more importantly become capable of making risky financial decisions in the long run.

A fractional CFO, therefore, sounds like a great idea, but when should you look into a CFO for hire for managing your business finances? Let’s find out.

Complex Financial Decision-Making

As your business grows, you’ll also find that your financial decision-making is also growing a bit complicated. If you find yourself facing intricate financial challenges such as raising capital, developing pricing strategies, managing cash flow, or assessing investment opportunities, it may be a sign that you need the expertise of a fractional CFO.

Fractional CFOs are experienced in making complex financial decisions. Since they’ve already served several other businesses and organizations, they can provide valuable insights and guidance to you and your business. Thanks to that, you and the rest of your team can navigate these financial complexities with ease.

Inadequate Financial Reporting and Analysis

Accurate and timely financial reporting is vital for informed decision-making. If your financial reports are inconsistent, lack detail, or fail to provide meaningful analysis, it can hinder your ability to assess your business’s performance and make strategic choices.

A fractional CFO can help you establish robust financial reporting systems, ensuring that you have access to accurate, relevant, and timely financial information. They can also conduct in-depth analysis, identify key performance indicators, and help you interpret the data to drive informed business decisions.

Cash Flow Challenges

Cash flow is the lifeblood of any business, and managing it effectively is crucial for survival and growth. If you’re consistently struggling with cash flow issues, such as late payments, inadequate working capital, or difficulty in forecasting future cash needs, it may be a clear indicator that you need the assistance of a fractional CFO.

These professionals can develop cash flow management strategies, negotiate with creditors and suppliers, optimize working capital, and create financial models that help you forecast cash needs and identify potential shortfalls.

Lack of Financial Strategy

A strong financial strategy is essential for sustainable growth and profitability. If you find yourself operating without a clear financial roadmap, it can hinder your ability to achieve your business goals.

A fractional CFO can work closely with you to develop a comprehensive financial strategy aligned with your business objectives. They can assess your current financial position, identify growth opportunities, create realistic financial projections, and develop action plans to drive financial success. Additionally, they can monitor your progress, provide ongoing financial analysis, and help you adapt your strategy as market conditions change.

Overwhelmed by Regulatory Compliance

Keeping up with regulatory compliance can be a daunting task for businesses, especially in industries with strict financial regulations. Non-compliance can result in severe penalties and damage your reputation. If you find yourself overwhelmed by the complexities of financial regulations, a fractional CFO can provide invaluable support.

These CFOs for hire stay updated with the latest regulations, ensure compliance with accounting standards, tax laws, and industry-specific regulations, and minimize the risk of non-compliance. They can also liaise with auditors and tax authorities on your behalf, easing the burden on your internal resources.

The Need to Cut Down on Costs

According to, hiring a full-time CEO in the US will set your company back by almost half a million dollars every year. CFOs in the US usually earn an annual wage between $324,378 and $549,293. That’s a hefty amount of money you’re having to spend every year, even if it’s for someone in such a top position on your company’s financial management team.

A fractional CFO, on the other hand, earns between $175 to $300 an hour according to the CMA Exam Academy. When you add up the costs for such a hire, you’ll see that you’re only spending a fraction of an amount of what you had to spend for the same role in a full-time position. That’s because working with a fractional CFO means you only have them oversee your company’s finances when you need them to, so you pay for what you get.

Hiring a fractional CFO is, therefore, cost-friendly for your business, something you’ll really appreciate when your company is cutting down on employee costs or costs in general.

All in all, hiring a fractional CFO is all about the timing. You need them to come in at the right time, shake up your company’s finances a bit, make a few financial decisions, and help the rest of the finance team develop itself through their expert guidance. If you notice any of the above-discussed points within your business, know that it’s time to bring in a CFO for hire and have them take over your company’s finances for a while.

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