10 reasons why a fractional CFO/FD is good for business growth

A fractional CFO or FD is a senior financial professional who works for a company on a part-time or project basis. Hiring a fractional CFO can benefit business growth for several reasons:

1. Cost-effectiveness

Fractional CFOs are typically less expensive than full-time CFOs, making them a cost-effective option for businesses that do not require or cannot afford a full-time CFO but still need financial expertise.

2. Expertise

Fractional CFOs are experienced financial professionals who can provide the same level of financial expertise as a full-time CFO. They can help businesses improve financial processes, develop strategies, and make informed financial decisions.

3. Flexibility

Part-time FDs offer flexibility in terms of their availability and the scope of their work. They can work on specific projects or tasks, and their workload can be adjusted based on the needs of the business.

4. Strategic focus

Fractional CFOs can help businesses focus on strategic financial planning and growth. They can provide valuable insights into financial trends and help businesses develop long-term financial strategies to achieve their goals. They can assist with business planning, financial forecasting, and developing financial strategies to increase revenue and profitability.

5. Objectivity

A part-time FD can provide an objective viewpoint on financial matters. As external professionals, they can offer unbiased advice and recommendations without being influenced by internal politics or relationships.

6. Customized service

A fractional FD can provide customised financial services tailored to the business’s needs. This can include financial planning, forecasting, budgeting, cash flow management, and other financial analysis.

7. Increased efficiency

A fractional CFO can help businesses streamline financial processes, reducing the time and effort required to manage finances. This can free up time for business owners and internal staff to focus on other areas of the business. This can be particularly beneficial for small business owners who may be stretched thin and need to focus on core business activities.

8. Access to networks

Fractional FDs often have extensive networks of financial professionals, including accountants, tax specialists, and other financial experts. This can benefit businesses that need to tap into specialised expertise as their needs evolve.

9. Improved financial reporting and management

A fractional CFO can help businesses improve their financial reporting, ensuring that financial information is accurate, timely, and presented in a helpful way for decision-making. Fractional CFOs can develop and implement financial policies, procedures and systems. They can also help businesses manage cash flow and optimise working capital.

10. Risk management

A fractional FD can help businesses identify and manage financial risks, ensuring that the business is prepared for unexpected events or financial challenges.

Hiring a fractional CFO can benefit businesses, including access to customised financial services, increased efficiency, access to networks, improved financial reporting, and better risk management. A fractional CFO can be an effective way for businesses to gain financial expertise, improve financial processes, and achieve their growth objectives without the cost and commitment of hiring a full-time CFO.

  • Romesh Jeyaseelanayagam

    The FD Consultant is a collective of Portfolio Finance Directors/Chief Financial Officers working with SMEs, Scale Ups and High Growth organisations on a part-time/fractional basis. Our clients receive exceptional quality, excellent value & highly flexible services with our effective senior strategic & financial consulting.