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A business that engages a full-time CFO enjoys the benefit of having a dedicated individual overseeing the company's financial matters. But what about a business that is not yet ready to engage a full-time CFO?
Last time, I mentioned that growing companies can consider engaging a fractional CFO first to consult on executive-level finance matters—balancing the need for finance leadership with cost optimization. [Click here to access the article When should a growing company hire its first CFO?] Even so, how can an engagement with a fractional CFO work well for the growing company?
Fractional CFO services are advisory by nature, which means a lot of things can be scoped into the engagement. Hence, some level of customization may be needed to ensure the company’s needs are met. If you're not sure where to start, have a conversation first with the potential fractional CFO and allow the individual to understand the company's business goals, company structure—particularly those related to finance—as well as internal and external developments. Based on this conversation, the fractional CFO can then make a recommendation on matters the company should consider prioritizing—for example, establishing the budget and financial reporting process, reviewing potential internal control risks, and sharing best practices. Both the company and the fractional CFO need to be transparent and aligned on expectations to make the engagement work even better.
If you're navigating growth and need finance function guidance, contact VMC.
VMC's views are general insights—not one-size-fits-all advice. Every company's situation is unique.
