Top 5 Advantages of Hiring a Fractional CFO
If you’re planning on growing your SME, you’re likely aware of the cost involved in doing so - hiring new heads, investing in new spaces and upgrading your software/technology to enable operations to run smoothly. But where should you invest first? Do you need to raise funds, and if so, where from?
If you’re asking these questions and you’re not sure about the right step for your business, ultimately, your first port of call should be to invest in an experience CFO to help you. A CFO works alongside your board of directors to help make financial decisions that’ll benefit your company long term.
But of course, hiring a full-time, experienced CFO comes with its serious investment and is, therefore, a difficult step for many SMEs to take. The solution? Hiring a fractional CFO with The Finance People. Still not convinced? Here are the top 5 advantages of hiring a fractional CFO.
1. You’ll get access to expert CFOs at a much lower annual cost
The most important advantage of hiring a fractional CFO is the fact you’ll gain access to a finance expert for a fraction of the cost. Gone are the days where you need to find the capital to invest in a full-time CFO – instead, you can still be guided by the expertise of an CFO and only pay for their time 1-3 days per week, should you wish to.
Working efficiently throughout their allocated time for your business, you’ll get the same level of expertise as you would from a full-time CFO, but simply within a part-time timeframe, at a lower cost.
2. They will plan and strategise in alignment with your business’s objectives
Hiring a fractional CFO is not too dissimilar to hiring a full-time CFO, in that despite working part-time they will be able to plan and build a Finance strategy in alignment with your overall business objectives. A fractional CFO would help you to expand on your business plan and guide you with long-term decisions for the benefit of your business.
3. They’ll build relationships and help raise funding
Having a fractional CFO within your business helps to provide connections and networking opportunities. They’ll have pre-built relationships with banks and an expert understanding of the five main fundraising options for your business. Ultimately, they’ll be able to provide their opinion on which options will be the best for your SME, as well as help you create those connections and begin the fundraising journey.
4. They’ll provide advanced-level financial reporting and forecast
Not only will your fractional CFO help to provide insight and expertise that’ll drive your business forward, they will also help you to build forecasts and provide advanced financial reporting. Having the right financial data on your business will not only assist you in decision-making now, but for years to come. By hiring a fractional CFO for your business, you’re setting the foundation and laying the groundwork for years of data-driven decision-making.
5. Ultimately, they will drive increased revenue for your business
Most importantly of all, hiring a fractional CFO will drive increased revenue for your business. Whether they’re helping you to make smarter decisions with your money, encouraging investment externally, building relationships with banks, improving your cash flow or guiding you on budgeting – a CFO will enable you to gain a better understanding of your SMEs finances and make decisions that’ll benefit your business long term. The overall impact of this is increased revenue and growth.
Ready to make that all-important part-time hire?
At The Finance People, we help SMEs gain access to financial experts to help their business thrive. Whether you need a part-time, interim or fractional CFO, a finance manager or controller, or even just a few outsourced tasks - at The Finance People, we'll find the right fit for you. Get in touch today.