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FAQs

What is a Fractional CFO?
The chief financial officer (CFO) holds the top financial position in an organization. He or she is responsible for tracking cash flow, financial planning and analyzing the company’s financial strengths and weaknesses. The CFO will frequently propose strategic concepts and connect the direction of the business with the resources needed to execute.
What does a fractional CFO do?
  • A CFO is responsible for a company’s past and present financial situation and is an integral part of a company’s management and financial future.
  • A CFO has multiple duties, from financial reportage to deciding where and when to invest company funds.
  • A CFO oversees the capital structure of the company, determining the best mix of debt, equity, and internal financing.
  • Addressing the issues surrounding capital structure is one of the most important duties of a CFO.
What are the Fractional CFO roles?

The Major Components of a CFO’s Job are:

Controllership Duties

These make up the backward-looking part of a CFO’s job. Controllership duties hold the CFO responsible for presenting and reporting accurate and timely historical financial information of the company. All stakeholders in the company, including shareholders, analysts, creditors, employees, and other members of management, rely on the accuracy and timeliness of this information. It is imperative that the information reported by the CFO is accurate because many decisions are based on it.

Treasury Duties

The CFO is also responsible for the company’s present financial condition. They must decide how to invest the company’s money, taking into consideration risk and liquidity. In addition, the CFO oversees the capital structure of the company and manages the changes in the “capital stack”, determining the best mix of debt, equity, and internal financing. Addressing the issues surrounding capital structure is one of the most important and sensitive duties of a CFO.

Economic strategy and Forecasting

A quality CFO is responsible for a company’s past and present financial situation, they are also a key player in a company’s future growth potential. A CFO must be able to identify and report what areas of a company are most efficient and how the company can capitalize and take action on this information with the resources available.

How much does a fractional CFO cost?
On average, fractional CFOs cost $3,000/month to $10,000/month. The most common agreements are between $5,000-$7,000/month for most small- to mid-sized companies. The cost of a fractional CFO depends on the scope of work necessary, the size and complexity of the company receiving services, the current state of the financials, and the strength of the current internal finance team.
What is Fractional CFO vs Controller?
Strategy and Forecasting vs Accounting and Bookkeeping
What does a fractional CFO do for the CEO/COO?
Provides timely and accurate financial statements with the strategic guidance to provide a consistent and confident decision-making process.