Finance is undoubtedly the bloodline of every business. To manage the finance of the company, a chief financial officer or CFO is usually appointed. However, small companies or specifically start-ups, cannot afford to have full-time CFOs. That is why they opt for fractional CFO service. Are you wondering what is the role of a fractional CFO in an organization? In this blog, you will get to know everything about fractional CFO. Let’s begin!
A Quick Overview of Fractional CFO
A fractional CFO serves as a part-time CFO for start-ups and small organizations. They offer their financial expertise on a contractual basis. They take care of the financial and accounting tasks of your organization. The fractional CFOs also help in developing financially viable strategies for the optimum success of businesses. They assist businesses in raising the required capital for effective expansion. Moreover, they also perform internal audits to evaluate the financial health of the companies.
Prominent Reasons to Hire the Services of Fractional CFO
There are several reasons to hire fractional CFO services. Here are the most common ones.
- You find financial forecasting to be stressful and complicated.
- You are occupied with other tasks and have less time to perform accounting and bookkeeping.
- You are planning to raise equity capital outside.
- You are onboarding new equity partners.
- You are about to acquire or merge with another business.
- You are planning to enter new markets.
Services Offered by the Fractional CFOs
Here is a list of services the fractional CFOs provide small businesses.
- Annual budgeting
- Negotiation and debt arrangements
- Month-end accounting
- Regular bookkeeping
- Forecasting profits, expenses, cash, and revenues
- Performing due diligence
- Maintaining relationships with lenders, investors, and banks
- Working on annual tax filling along with the CPAs
- Analyzing the cost of customer acquisition.
Tips to Hire the Fractional CFO
Are you planning to hire a fractional CFO for your small business? If yes, here are the tips to follow.
Consider the Experience and Expertise
When you want to hire a fractional CFO, you must first look for their experience and expertise in the domain. Make sure they have prior experience working with different companies. The experienced professionals have in-depth knowledge in the field and can assist you in the financial tasks in the best possible way.
Ask for Referrals
Before finalizing a fractional CFO, you must ask them for references. Connect with previous clients and take their reviews. It will help you get an idea of the type and quality of services delivered by the experts.
Interview the Professionals
Once you have shortlisted some of the best fractional CFO, you must interview them. It will enable you to gain more understanding of their knowledge and experience. Also, evaluate their communication style and select the best one.
Fractional CFOs are indeed important for start-ups and small companies. Are you ready to hire professional CFO consulting services? If yes, trust Interactive Accounts for all your needs. With years of experience in the industry, they can offer you reliable account support services in Singapore.