What to Expect from Your Fractional CFO

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Finance & Strategy, For Business Owners

Traditionally, the role of a Chief Financial Officer (CFO) is associated with larger businesses and comes with a hefty six-figure salary. Many small and medium-sized firms assume that hiring a CFO is out of reach due to the cost.

However, this is not the case with Outmin's fractional CFO service. We provide affordable financial expertise for businesses of all sizes. In this article, we'll explore everything you need to know about fractional CFOs using our first-hand customer stories and examples.

What’s a Fractional CFO?

A Fractional CFO, or fCFO for short, is like having your own financial coach. While accountants may focus on past financial data, fCFOs have a forward-looking approach, helping businesses plan for the future and achieve their goals.

The core responsibilities of a fractional Chief Financial Offer include the following:

1. Financial strategy & analysis

2. Financial reporting

3. Cash flow management

4. Risk management

5. Tax planning

6. Budgeting & forecasting

7. Preparing for audits

However, with a tailored fractional CFO service, you can tailor these services to your needs. You may want the full scope or ask them to focus on specific tasks.

In short, an fCFO is an invaluable part of ensuring your business’s financial health and planning for the future. Or, as Conor S., one of our fractional Chief Financial Officers at Outmin, likes to say:

“Many business owners imagine fCFOs to be like accountants - juggling spreadsheets and discussing technical terms. In reality, we’re more like your business counsellors - here to understand where you want to go and show you how to get there financially.”

What Does a Fractional CFO Do?

Running a business can be a lonely and stressful experience. Business owners often have to put on a brave face for their teams, but behind closed doors, they may be panicking about their finances.

That's where our fCFOs come in. We offer the expertise and guidance needed to navigate the financial complexities of running a business.

For instance, suppose your business relies on just one client for its revenue. This is not a solid financial plan and can be risky. Outmin’s fractional Chief Financial Officer can help you identify potential risks and develop a financial strategy that ensures your business is more resilient and less reliant on a single source of income.

Or let’s take another example – we had a client who had not raised their prices in seven years while their competitors had. As a result, their profits were not growing despite an increase in revenue.

Our fCFOs can help identify missed opportunities like these and develop a roadmap that leverages your financial state to achieve your goals.

Your fCFO will come in with a fresh pair of eyes to make sure you’re maximising every opportunity and not letting anything slip through the cracks!

Benefits of Hiring a Fractional CFO vs a Traditional CFO

Working with a fractional CFO has many advantages compared to hiring a traditional Chief Financial Officer, including:

A Fractional Chief Financial Officer Has Broader Knowledge: A full-time CFO is limited by their previous experience, but an fCFO works with a variety of clients in specific industries simultaneously – meaning they have unique insights into industry-specific trends and best practices. When you hire an fCFO from Outmin, you get a business consultant who knows what’s happening in your industry right now and can offer invaluable guidance.
Affordable Expertise & Flexibility: You don't have to worry about hiring a full-time CFO and paying a fixed salary. Instead, you can engage the services of an fCFO as and when needed.
Strategic Focus: An fCFO doesn’t just focus on number-crunching but also offers guidance on what to do to achieve your business objectives. With an fCFO, you get a strategic partner who can help you make informed financial decisions and reach long-term success.
Team of Experts On-Call: When you hire an fCFO from Outmin, you're not just hiring an individual but an entire team of financial masterminds with specialisations. You’ll have access to a wealth of knowledge and expertise at a lower price since everyone works in the area they specialise in.

When Is the Right Time to Consider a Fractional CFO?

You may wonder when the right time is to hire a fractional CFO. The truth is, it's always a good time to start the conversation to see how they can help you make the most of your business.

However, there are certain situations where hiring a fractional CFO becomes even more crucial. For example:

You Have Specific Goals (or Projects) in Mind: If you’re thinking about raising money for your startup, expanding your business, or optimising your financial operations, it's time to hire an fCFO. They provide you with a clear, actionable roadmap to get there.
You Want to Hire a Jack-of-All-Trades: Experts with specialisations in different financial and accounting areas command significant salaries, and you’re still wasting some of their talents on routine tasks. Fractional CFO services assign specialists in each area to your project, so you’re getting significant cost savings!
You're Facing Cash Flow Problems: Cash flow problems can quickly become a major issue that can cripple your business. Your fractional CFO can help you identify the root cause of the problems and provide solutions to help strengthen your financial standing.
You Need to Take Out a Bank Loan: Getting a bank loan requires you to have a solid financial plan in place. An fCFO can help you prepare financial statements, cash flow projections, and other documentation required by lenders to increase your chances of approval.
You Want to Grow: Plain and simple, a fractional CFO will help you understand your unique strengths and areas of opportunities so you’re not postponing your growth for another year.

These are just a few examples of where having an fCFO really shines. Whether you’re facing restructuring, budgeting issues, or there are regulatory changes incoming, an fCFO can help.

“For example, you can consult a fractional CFO for a project. They’d help you develop your pipeline plan, chargeability forecasts, resources, project cashflow, etc. You’d essentially get a roadmap to running the service.“

- Outmin’s fractional CFO team

However, don’t wait until the last minute! These things take time to prepare for, and your fCFO can foresee any roadblocks before they hinder your growth.

How to Hire a Fractional CFO

Before you jump on a call with our team, there are a few prerequisites that our fractional CFOs have found handy to hit the ground running as soon as possible.

First, you'll want to ensure your accounts are in order so that the fCFO has a clear understanding of your business's financial health.

Once you've sorted that, it's time to onboard with the Outmin platform and schedule a chat with your fractional CFO.

During this call, we’ll discuss your objectives and goals, and the fCFO will start planning how to achieve them. You'll also need to determine the level of involvement that works best for your business – for example, it may be enough for them to take part in board meetings once a month.

With Outmin's easy onboarding process, getting a trusted and qualified fCFO for your business has never been easier!

Take Control of Your Financial Future with Outmin

If you're a business owner looking for a competitive edge, an fCFO from Outmin could be the answer you’re looking for.

The benefits of having an expert in your corner to help you navigate financial challenges and opportunities are clear. By partnering with Outmin, you get access to a team of specialists who can provide tailored guidance for your unique situation.

Say goodbye to the stress of juggling financial tasks and hello to a clearer path forward for your business! Contact Outmin today to learn more and take your business to new heights.

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