Fractional CFO Services 101: Everything You Need to Know

As a leader, you’re laser-focused on the success of your organization – whether you’re enhancing consumer offerings, safeguarding your team, or maximizing profits. But to get the best results, you’ve probably realized you can’t do it alone. 

The more your business grows, the more important financial clarity, strategy, and process become. And so for larger organizations, that’s often where a CFO comes in. But for many, hiring a CFO can be expensive, time-consuming, and difficult. Not to mention, there’s no guarantee you’ll hire the best candidate the first time around. 

Fortunately, there is another route you can take to reap the benefits of senior help and input on your organization’s high-level financial strategy. 

BELAY fractional CFOs allow you to scale your organization to new heights, delegate financial strategy and management tasks, and grow financial confidence. And because our team has such a wide range of highly vetted CFOs, we’re prepared to help leaders of startups and Fortune 500 companies alike.

Before we dive into the difference between fractional and on-staff CFOs, let’s refresh ourselves on the basics:

CFO: Role & Responsibilities 

Along with tackling financial reporting and data analysis, a CFO is responsible for developing financial strategies, assessing risks, managing budgets, and more.  

Responsibilities include:

• • Tracking cash flow
  • Financial planning
  • Analyzing financial strengths and weaknesses
  • Recommending corrective actions
  • Making decisions related to risks and investments
  • Navigating legal and regulatory requirements
  • Developing long-term plans 
    

Why Fractional CFO Services?

Put simply, fractional CFO services entail outsourcing to a CFO to meet your unique needs. This approach comes with more flexibility and less commitment. It’s also typically much more cost-effective – especially for small and mid-sized businesses.

You should consider a fractional CFO if:

• • You’re facing an official launch, and need help developing financial models, forecasting your runway, and ensuring you have a solid financial foundation.
  • You’re navigating rapid growth, and need help managing cash flow effectively, optimizing expenses, and making informed decisions.
  • You’re working to secure funding, and need help building compelling pitch decks, investor-ready financial models, and strong narratives for impactful presentations.  

Of course, just like any other CFO, not all fractional CFOs offer the same level of expertise and quality of offerings.

Fractional CFO Services: Finding The Right Fit

To find the right fractional CFO for your business, there are a handful of factors to consider: 

• Proximity: From tackling urgent needs to scheduling meetings, having a CFO who’s located in the same country as you can be enormously helpful in terms of timely communication that fits your working schedule. That’s why all BELAY CFOs are U.S.-based for your convenience.

• Expertise: The best CFO is a highly-vetted CFO. For example, all BELAY’s CFOs undergo an exhaustive recruiting process including video interviews, skill assessments, and more.

• Specialization: Finding the right CFO isn’t just about skill; it’s about specialization. To meet your specific needs, BELAY specializes in finding and matching you with the best fit.

• Peace of Mind: Rely on more than a CFO. To ensure your needs are met, BELAY connects you with a dedicated Client Success Consultant who has your back every step of the way.

Once you think through these factors, there are a few more steps you can take to prepare for an efficient and effective search:

Step 1: Define Your Needs
Your business is unique, and so are your financial needs. To begin your search, start by asking yourself what your biggest financial challenges are, what you hope to achieve by hiring a fractional CFO, and if there are any must-haves or restrictions you should consider. 

Step 2: Do Your Research 
There are plenty of fractional CFOs to choose from. In fact, BELAY has CFOs who specialize in everything from startups to Fortune 500 companies. To find the right fit, look through factors like relevant industry experience, available service reviews, and more. 

Step 3: Interview Candidates 
Once you’ve completed your research and narrowed down your options, interview potential candidates to learn more about their experience, qualifications, references, and even communication style. A simple conversation goes a long way!

Step 4: Negotiate Terms
Set your CFO and yourself up for success by negotiating the terms of your agreement before diving into any further action items. Make sure your negotiation includes the scope of work, price, and payment terms.

Fractional CFO Services: The Direct Impact 

Let’s say you’ve made the decision to hire a fractional CFO with BELAY. How will this choice impact your organization – and your day-to-day workload? 

1. Bandwidth: Handling CFO services yourself takes up valuable time; it also requires a lot of brain power. By hiring a CFO, you can reclaim your bandwidth, focus on your strengths, and dive deep into your specialties.

2. Optimization: A skilled CFO, like a BELAY fractional CFO, takes a strategic approach to optimize your finances. From conducting rigorous reviews to profit planning and execution, this professional can boost your business’s profitability by turning insights into actions.

3. Longevity: In addition to navigating short-term goals, the right CFO looks at your finances holistically – helping you envision and actualize your company’s ideal future state.

4. Transparency: A CFO keeps you in the loop with financial insights, so you can know and understand what’s on the table without having to put in the hard work yourself.

5. Liaison: Conversing with tax experts, lenders, investors, and more can easily take over your to-do list. That’s why BELAY CFOs serve as liaisons with third-party professionals.

6. Proactivity: CFOs are highly strategic, implementing data-based insights and risk management processes to help you stay ahead of both goals and challenges.

7. Scalability: Different organizations have different needs. That’s why BELAY has such a wide range of highly-vetted CFOs who specialize in startups, Fortune 500 companies, and beyond.

NOW WHAT?

Are you interested in hiring a BELAY fractional CFO? Curious how else we can help you reach your financial goals? If so, we’d love to chat with you! Schedule a free consultation today to see how BELAY can help you optimize your finances and get back to what you do best. 

From financial planning and analysis to risk management and strategic decision-making, our CFOs bring a wealth of knowledge and insight to every client engagement.