If you own a startup company, it can be quite difficult to afford to fill all of the executive positions that are needed for the proper functioning of the business. One of the most difficult to fill is generally the Chief Financial Officer. This is why it is a smart idea to hire a fractional CFO to perform these duties. There are many benefits to doing so.
Not Full Time
Since a CFO that is considered fictional works for several different clients, they are not paid on a full-time basis. Generally, they are paid per project that they offer guidance on. This saves the burgeoning a tremendous amount of money versus paying someone a salary when they are not particularly needed all of the time.
Cost-Effective
Hiring A CFO in this manner is generally considered quite cost-effective because you are only paying for services that are actually needed and used. This is much more likely to fit within the tighter budgets of smaller companies.
Experience
Since a fractional CFO tends to be a retired traditional chief financial officer, they bring with them years of industry experience that the company can leverage at a greatly reduced rate. This means that you are getting the same knowledge as larger companies without the massive expenditures that are necessitated by salaries and associated benefits.
Scalability
A CFO who is retained on a fractional basis can offer their services at scale. They can be available as little or as often as your company needs them.
