What is a Fractional CFO, and how can your business benefit from one?

As we creep closer to the mid-way point of 2021, we continue to see monumental shifts in daily life. Many consumers and investors are optimistically gravitating toward a post-pandemic lifestyle. Yet, one of the most notable – and concerning – issues for many small business owners is the labor shortage.

According to an article in Forbes last month discussing “The rise of the independent worker: Why everyone wants to work in the gig economy now,” the reality is that professional expectations are shifting. Both for employees and employers, there’s value in making intelligent, strategic decisions to minimize risk and maximize a return to profitability. The truth of the growing gig economy is that it’s not just employees who see the value in outsourced work. There’s still trepidation to head right into a hiring frenzy for companies that are recovering, rebuilding, and growing as the economy rebounds.

The good news is the availability of experienced financial experts at the C-suite level who are primed and ready to help your business efficiently and strategically thrive. A Chief Financial Officer (CFO) is critical for every growing business. And while a senior-level financial expert may seem unaffordable, those who can complete the work in half the time are able to work as Interim consultants helping non-competitive companies with seasoned expertise. Working with an outsourced CFO creates efficiencies for your business. Trusted third-party advisors are best at devising optimum cash flow systems, advising on tax strategies, and reviewing your business’s working capital and payroll structures. In a fraction of the time, an experienced CFO working as an independent counselor will focus their solid accounting and finance capabilities on your business ledger, so you can concentrate on delivering the best products and services to your customers.

Companies looking to partner with outsourced CFO advisors find that working with established agencies and networks benefits their business with a multidisciplinary approach. Finding an experienced “CFO-for-Hire” team can help your business by bringing their industry-specific knowledge to expedite any learning curve climbs. Once a fractional CFO begins consulting for your business, they will quickly advance your business financial goals.

So, what’s the tipping point for small business owners trying to determine when it’s time to employ a gig economy part-time CFO? Ask yourself if you’re looking to:

• Gain the experience of a high-level, experienced CFO.
• Save on operating costs for a full-time, highly experienced in-house CFO.
• Continue to grow and adapt as business needs change.

Though we’re hoping to be heading toward a world with more certainty, it’s still essential to maintain financial controls and limit your risk of fraud or theft. An outsourced CFO works as much or as little as needed, aiding with financial questions and advice.

The Rockridge Financial fractional CFO consulting services provide high-level financial perspective and expert advice so that you can make better decisions for a more profitable business. Contact our team to schedule a complimentary 45-minute consulting session to discuss your specific questions, review key business decisions, and gather overall feedback.