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Florida CF Group
(877) 352-2367ASK A CFO

One of the Best Ways to Keep Your Company's Financials in Order Is with a Fractional CFO

August 12, 2021
| By: Don Noble

Introduction to fractional CFOs

Partnering with a fractional CFO service provider provides you with a trained member of staff who has a strong knowledge of the industry and with experience in using financial software and systems. A fractional CFO is an employee who's responsible for the day-to-day operation of a business' accounting and financial management systems. This employee is hired to solve your company's accounting problems on an ongoing basis, often dealing with data aggregation, complicated reconciliations, and spreadsheets. With a fractional CFO, your staff accountant becomes a member of your finance team — working on tasks that are only relevant to the company in question.

Why choose a fractional CFO?

CFOs are hard to find. It's unlikely that your company's accounting systems are fully operational. Without them, you have no way of knowing whether you are getting paid your fair share of taxes, or how much money is being made and lost because of the state of your accounts. You need to be able to compare your financial statements to those of your competitors. You need to know your financial health and plan for the future. When your accounting system is working properly, you need to bring in a CFO to provide you with the insight you need to keep your organization in top form. It's an unusual responsibility and may be a daunting task for a company with no experience with corporate finance.

What are the benefits of using a fractional CFO service?

Practical: The fractional CFO service removes one of the biggest challenges companies face, namely finding qualified accounting professionals at the best price. Fractional CFOs are experts in the niche fields in which they focus and are a big help in steering businesses clear of their accounting problems. The fractional CFO service removes one of the biggest challenges companies face, namely finding qualified accounting professionals at the best price. Fractional CFOs are experts in the niche fields in which they focus and are a big help in steering businesses clear of their accounting problems. Minimal overhead: A fractional CFO service generally handles all of the financial tasks related to the company and the financial accounts.

The advantages of hiring an outsourced CFO

Because so many companies are still utilizing outdated accounting and reporting practices, managing a business can be extremely challenging without an expert finance team in place. According to a survey by Associated Bank, 85 percent of respondents cited poor budgeting as the top problem in their organization, followed by financial risk management (80 percent), under-funding a 401k (73 percent), and poor cash management (69 percent). These are factors that can be improved with the aid of a financial specialist. Outsourcing with a fractional CFO service provides a customized solution for your company.

Considerations when hiring a CFO

Working with an outsourced CFO means that you can focus on other aspects of your business. Even the highest-level businesspeople have many other obligations. The best CFO services offer a full range of accounting services from handling accounts payable to reconciliation. Services that cover these areas effectively are well worth the price tag. You can take advantage of the knowledge and skill of highly qualified accounting professionals. These professionals can assist in cutting down on the number of time-consuming and costly operational tasks that you have to perform on your own. These are all things that can be done by many different accounting systems, and they are time-consuming.

Conclusion

At the end of the day, the best companies know that their financials are among their most valuable assets. Therefore retaining an expert CFO on retainer will ultimately improve your company's financial health, streamline your process, and allow you to focus on more strategic initiatives for your organization.

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