Rapid Growth Causes Increased Risk
Small to medium sized businesses that are in rapid growth also are experiencing increased financial risk as a result. Growth requires expansion of the company’s automated systems and access to additional financing to fuel the growth. Managing these financial risks may be foreign territory for the business owner and his team. The company needs a CFO to manage the bigger picture. The CFO will make sure that the systems, processes and people are in place to produce accurate financial information so that the owner of the company can make better decisions managing growth. However, many small and medium sized companies simply cannot afford to hire a full time CFO.
Fractional CFO and Controller Services are the Solutions
Fortunately, there are firms that provide outsourced fractional CFO and Controller services that are affordable. The best way for a company to identify a good service provider is to tap its network of trusted advisers, such as bankers, investors, attorneys or CPA firm. These advisers can direct their client toward a firm that provides the comprehensive accounting and financial reporting support, as well as strategic financial initiatives, that will help drive growth.
What Does the Role Entail?
Businesses who decide to engage a CFO are looking to acquire a person that can guide them with strategic initiatives, but what does that look like? In our experience, a fractional CFO can:
- Assist companies who are preparing for an acquisition or sale and guide them through the examination phase and financial due diligence required to execute transactions
- Provide guidance in reconciliation projects
- Offer advice in software system reviews and recommendations
- Review company processes and offer guidance on optimization
- Enhance reporting setup and support
Ultimately, the role will depend on the needs of the company who is interested in engaging in controlling services. Are you interested in engaging a fractional CFO for your business, and if so, what would that role look like?