A fractional CFO has worked on high-level executive teams, giving them the experience to develop staff. It can come in handy when you need a company to guide strategic financial decision-making.
Unlike bookkeepers, CFOs can make forward-thinking decisions based on current and historical data. It helps to ensure that your company grows sustainably.
Saves You Money
When a startup needs an experienced financial expert but can’t afford a full-time in-house employee, hiring a fractional CFO Denver is the solution. They work on a contract basis for an agreed-upon amount of time, bringing all the expertise of a high-level financial leader at a much more affordable rate.
They’ll translate your business metrics into insight that other management team members can use for strategic decision-making. It helps everyone on the team be more aware of where the company is at financially and can prevent costly mistakes.
A good part-time CFO can also help you save money by implementing systems that streamline processes, eliminate duplication of effort and improve accuracy. It can reduce overall costs for your business and help you achieve sustainable results.
Saves You Time
When you hire a fractional CFO, you get the financial expertise your startup needs to grow without the cost of hiring a full-time in-house team. The skills they bring vary from that of a bookkeeper (closed books, paying invoices, categorizing expenses) to that of a controller (aligning revenue and expense KPIs, ensuring GAAP compliance, preparing financial statements, analyzing cash flow).
They also provide strategic guidance. They’ll use models to predict profitability, cash flow, and the effects of different strategies for your business, including the potential effect of running out of money or raising capital.
They can help you avoid trouble by interpreting your financial reports and working with the company to create a strategy that works. They can also handle special reporting, audits, mergers and acquisitions, discussions with lenders, investors, and other due diligence requirements. They’ll have seen a lot in the past and can draw on that experience when solving problems for your unique situation.
Saves You Stress
When a business is overgrowing, keeping up may take work. The extra transactions can strain finances, whether they’re making new investments, scaling production, or hiring for expansion. A CFO can help make sure the business is financially fit for growth.
They’ll also relieve stress by providing hints, tips, and tricks to improve financial performance. For example, they might point out inefficient processes that can be cut or ways to lower COGS and customer acquisition costs.
They’ll also help you get funding from banks and other investors by preparing accurate records for your business. Without reliable financial statements, you won’t be able to raise money for your company. A good CFO can explain your financial situation clearly and concisely, so you can understand it. Reduces stress and frustration for everyone involved in the process. They’ll even take over getting loans for you if necessary.
Saves You Money In Training
A full-time CFO can be costly for most small businesses and startups, which may need more funds to hire one. A fractional CFO is much more affordable and can be hired on a contractual basis, allowing startups to reap the benefits of financial management without spending too much money.
Fractional CFOs are experts in managing cash flow, and they can help you identify expendable expenses and ways to reduce costs. They can also develop a plan for your business, from short-term goals to long-term financial strategies.
They can even create a financial model that shows you how your business would be affected by specific decisions. It will give you a more realistic picture of how your business could do in the future and prevent you from making costly mistakes. Hiring a fractional CFO is an excellent idea to ensure your social impact business is on the right track.