You may ask yourself: What is a fractional CFO and why would you want one?
When it comes to your company’s finances, keeping all your ducks in a row can be a real hassle, especially if you’re not a numbers person. Here’s where a CFO comes in. A CFO (Chief Financial Officer) has the job of helping you establish and reach your financial goals, making them seem a little more like molehills and a little less like mountains. A fractional CFO is someone who does this contractually. Someone who helps you kick start your company’s financial journey. This is especially relevant if you’re launching a start-up business or are new to some part of the finance world, CFOs guide you to take the right first steps.
So, you know what a fractional CFO is, you’ve hired one, and you’re wondering, “How can I maximize the value of this service?”
Here are 8 tips to help you maximize the value of your fractional CFO:
- Network
Part of maximizing the value of your fractional CFO is choosing the right one. Talk with friends, and other companies, or research online. What do you need help with? Are you looking to strategize ways to grow your business? Are you working on a financial forecast? Maybe you’re wanting to invest and expand your business or cut costs and budget but don’t know where to start. Researching and networking with other companies or individuals in similar positions to you could help you find a Fractional CFO who will understand your needs and best help you fill them.
- Establish your goals
To maximize the value for your Fractional CFO you need to know what you want to accomplish with them. Sit down and think about your needs. Prioritize them. If you’re not sure how to prioritize them, that’s okay. Just write them all down. This is going to play into tip #3.
- Tell them your goals:
Sometimes we can visualize a destination and yet be lost when it comes to reaching it. Once we have our goals written down, we need to communicate them. Whether it’s for your start-up business, investment advice, or team management, sharing your financial goals with your new fractional CFO will help them guide you in establishing the right steps to take to achieve them. Together you can build a plan tailored to your needs and set up short-term thresholds to help you reach those long-term goals.
- Ask questions
The financial world has a lot of jargon and can be hard to navigate at times. A CFO is trained to speak this language and can help make it accessible to you. CFOs can help forecast revenue, predict sales, set up financial models, and help you evaluate areas that need development.
Asking questions can seem embarrassing, especially if you don’t know what to ask. Again, this is what your fractional CFO is there for. You’ve hired them to help answer these questions and make sense of the complexity
- Skip the email, and set up a meeting.
While emails are a primary mode of communication today, sometimes they can be a barrier to saving time. Make sure you schedule time to talk to your Fractional CFO. Are they in their office during the week? Book a meeting. If you’re across the country or can’t go meet him/her in person, set up a zoom meeting. Speaking face to face, virtually or in person will let them see your face and reactions and better answer your questions without having to go through the wait time of an email.
- Evaluate, plan, evaluate again
Your fractional CFO has helped you set up your goals and make a plan. Now what? Evaluate. Are you meeting your revenue goals? Are you still on track with your budget? Does your bookkeeping reflect costs accurately? Are you ready for an audit? Are you up to date with risk evaluations? Have you analyzed tax strategies? Are you keeping on top of your debt payments? You gotta evaluate what’s working and what’s not. Reframe your perspective and ask your fractional CFO to come at it from a fresh angle. Make new plans and keep evaluating as you go.
- Know your CFO’s services
Did you hire your fractional CFO to help oversee bookkeeping but now find your company’s growth requires a complete reevaluation of your tax strategy and a review of your records? Your fractional CFO can help you. Educate yourself on their services and see how you might take advantage of each one to get the most out of your partnership.
- Be professional
Last but not least, be professional. While the ins and outs of business and finance can often involve personal investment, and be a stressful environment, it is important to keep a professional and respectful working relationship with your CFO. Clear communication is integral to this. Implementing clear lines of communication and frequent touchpoints will help you build a good reputation and encourage your fractional CFO to do everything in their power to assist you in achieving your goals.
These tips are helpful, but they’re just a jumping-off point. At the end of the day, maximizing the value of your fractional CFO is in your hands. Research and evaluate: know what services your fractional CFO offers, whether you are taking advantage of them, and think about how they’re serving your needs.
Know your goals and know how you want to grow your business. Communicate these goals to your fractional CFO to see how you can help each other to make those plans a reality.
If you have questions or want to start your journey and find the right CFO for your needs, reach out to us today and we’ll help you conquer your mountains.
