As a business grows and changes, so does its need for guidance. Luckily, companies can tap into the expertise of a CFO today without bearing the burden of their full-time salary.

Not sure whether you need a fractional CFO yet? Check this list of signs that indicate it’s time to reach out for more guidance.

Rapid Growth

The pandemic has sparked rapid growth in some industries and companies. If your business finds itself grappling with a rapid increase in sales, a fractional CFO can lighten your load, and optimize cash flow.

Declining Profitability

Companies may have managed to maintain or even increase sales during this perilous time. However, they can also see their profits are dropping without understanding the cause.

A fractional CFO can analyze your finances and provide you with insights and guidance so you can get your business back on track.

Entering New Markets

Many businesses now find they must explore new markets to cope with changes triggered by the pandemic. Fortunately, a fractional CFO can tell you whether your business has the capacity and resources to manage growth well.

Need Capital

Growth demands capital and no one is better-suited to help you with the process than a fractional CFO. They will review your financial records for accuracy, organize materials to present to investors or lenders, and increase your chances of success.

A good fractional CFO is experienced in raising money for companies much like yours. They can help you determine how much money you need and the best type of financing. However, they are also invaluable during due-diligence, analysis, and contract negotiations. 

Acquisition or Merger

A CFO is also essential if you’re planning to sell or buy another business. If selling, they will prepare your financial reports and manage a smooth financial transition. If buying, they can analyze financial data to ensure the acquisition suits your financial position and goals.

Going Public

A CFO is a valuable addition to your team when you’re planning an IPO. The process involves audits and demands accurate reporting as your business will have a responsibility to its shareholders.

Cash Flow Problems

A CFO can help you trim overspending by reducing or eliminating unnecessary costs. They can also help your business implement accounts receivable and payable strategies to help create a positive cash flow.

They can also audit departments and inventory, implement checks and balances, make projections, and ensure you have a cash reserve on-hand.

Need Detailed Information

Generating financial reports is easy, but what do they mean? Without detailed financial information it is impossible to make important decisions.

A fractional CFO can help your business attain a detailed understanding of its finances to create a strategy for sustainable growth. They can also help you identify problems and analyze opportunities through accurate financial data.

Finally, a CFO can help you make educated financial projections. By reviewing industry trends, historical financial data, and comparing your company to other similar businesses you can craft a long-term strategy and a realistic financial blueprint.

 

Considering you can tap into the expertise of a CFO, without paying for a full-time employee, it doesn’t make financial sense to go it alone. A fractional CFO is a cost-effective solution with great return on your investment.

If you’re interested in this type of service, contact us. JB CFO offers a full-suite of services for business and a free consultation. Let us help you overcome your challenges to ensure your company flourishes.