Why It Is Important

A fractional CFO can offer small businesses great benefits. They are an affordable alternative to hiring a full-time advisor. Also, many businesses that rely upon accurate financial information may benefit from having a part-timer, or virtual CFO, on staff as a trusted advisor.

There are many advantages to hiring a fractional CFO. The most obvious benefit is the ability to save money on paying out large fees, such as those involved in hiring an accountant or a consultant. In many ways, the hiring of a fractional CFO is akin to hiring a full-time accountant, except that the individual is not fully paid for the services performed. Instead, the entrepreneur only pays for the services when they are needed. In many ways, the individual is treated as a contractor.

The benefits of hiring one include the ability to take advantage of on-site training opportunities, while still being able to use the services when needed. By delegating the accounting functions to a fractional CFO, the entrepreneur can have the chief financial officer focus on strategic planning and other business dynamics, while the company focuses on running the business.

Fractional CFOs are great additions to a small business owner’s payroll. This option allows the business owner to hire a part-timer to handle some of the accounting work. The CFO will usually be responsible for taking care of some of the bookkeeping. By delegating some of these responsibilities to a fractional CFO, the small business owner is able to free up some of their own time to handle other aspects of the business effectively.

Small businesses are encouraged to look into this option as a cost-effective solution to tracking financial affairs. The majority of small business owners do not feel they possess the experience to be able to handle such things on their own or learn them.