Fractional CFO Service + Accounting For Your Company.

Frequently asked questions

Is a fractional CFO the same as a virtual CFO, part-time CFO or outsourced CFO?

The name Fractional CFO is often used interchangeably with Part-time CFO, Virtual CFO, Interim CFO, Outsourced CFO and Consultant CFO.  These terms are frequently used to describe a financial management expert who provides support to a company on a part-time or as-needed basis. The specific term used may depend on the nature of the engagement and the specific needs of the business.  Learn more: What is a fractional cfo?

1. Part-time CFO: The name Part-time CFO refers to a CFO who works for a company on a part-time basis, normally for a fixed number of hours per week or month.
2. Virtual CFO: A virtual CFO provides financial management support to a company remotely, using tools such as video conferencing, email, and text messaging for communication with the company.
3. Interim CFO: An interim CFO is a temporary CFO who provides financial management support for a company during a transition period, such as during a search for a full-time CFO or during a period of rapid growth and change.
4. Outsourced CFO: This name refers to a CFO who is engaged by a company on a contract basis, rather than as a full-time employee.
5. Consultant CFO: A consultant CFO is a financial expert who provides independent advice and support to a company, typically on a project or limited scope basis.

What is a fractional CFO?

A Fractional CFO is a financial expert who provides CFO-level support to companies on a part-time basis. Unlike a full-time CFO, a fractional CFO is engaged on a part-time basis, providing the company with the financial expertise it needs without the cost and overhead associated with a full-time employee. What is the definition of a Fractional CFO?

What services do fractional CFOs provide?

Fractional CFOs provide a range of services including financial modeling, strategic and operational planning, cashflow forecasting, profitability analysis of business units, trend analysis, long-range planning and quantification of goals, merger and acquisition assistance, bookkeeping, accounting, and month-end financial closeout.  Some Fractional CFOs will also liaison with a company’s bankers, attorneys and strategic vendors.  SignalCFO provides all of these services.

Who uses fractional CFO services?

Fractional CFO services are often used by SMB companies with revenues of $500,000 to $25 million, who are growing and scaling and need access to financial expertise but are not ready to afford the cost of a full-time CFO. Fractional CFOs can also be used by larger companies looking for specific financial management support for a project or to strengthen the resources of the existing finance team.

Note: SMBs are small to midsize businesses often with fewer than 100 employees.

What are the benefits of using a fractional CFO?

There are many benefits of using a fractional CFO for small and growing businesses.

1. Access to expert financial advice and guidance: A fractional CFO can provide small and growing businesses with strategic financial planning, analysis, and decision-making support.
2. Flexibility: A fractional CFO can be engaged on a part-time basis, giving businesses the flexibility to tailor their financial support to their specific needs.
3. Improved financial management: A fractional CFO can help their clients implement better financial processes and systems, leading to improved financial management and greater efficiency.
4. Enhanced decision-making: A fractional CFO can provide valuable insights and data-driven recommendations, enabling business owners to make more informed decisions about their finances.
5. Cost-effective solution: A fractional CFO can be hired for a fraction of the cost of a full-time CFO.

 

How do fractional CFOs work with their clients?

Fractional CFOs typically work with their clients on a regular basis, providing financial reporting, analysis, and support. This includes regular meetings and communication to review the financial performance of the company and suggest any necessary adjustments to a company’s financial and operating plan. Fractional CFOs also take a proactive approach to financial management, working with the client to identify areas of risk and opportunity and develop strategies to address these issues.

What industries does SignalCFO serve?

SignalCFO serves a variety of industries including: Software as a Service (SaaS), Technology, Manufacturing Professional Services, Engineering, Architecture, Data Science, Digital Marketing, Property Management, Food Service, Online Retail

Glossary of financial terms related to fractional CFO services

1. Financial Planning and Analysis (FP&A): The process of creating financial models/projections and analyzing a company’s financial performance to support decision making and long-term planning. Learn more about the value of financial modeling.
2. Financial Modeling: Macro-level, structured and systematic financial analysis to support strategic decision making.
3. Financial Reporting: The process of presenting a company’s financial information to stakeholders, including financial statements, budget reports, and other performance metrics.
4. Financial Management: The process of managing a company’s financial resources, including budgeting, forecasting, and financial reporting.
5. Capital Planning: The process of evaluating and allocating a company’s financial resources to support growth and investments.
6. Risk Management: The process of identifying and mitigating potential financial risks to the company.
7. Corporate Finance: The process of raising capital, managing financial resources, and making strategic financial decisions to support the growth and success of the company.
8. Mergers and Acquisitions (M&A): The process of combining two or more companies into a single entity through either a merger or an acquisition.
9. Strategic & Operational Planning: The process of defining a company’s mission, goals, and strategies to achieve its long-term vision.
10. Return on Investment (ROI): A measure of the return generated by an investment, expressed as a percentage of the original investment.
11. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company’s financial performance that excludes the impact of interest, taxes, depreciation, and amortization.
12. Working Capital: The difference between a company’s current assets and its current liabilities, indicating its ability to meet short-term obligations.
13. Capital Structure: The mix of debt and equity used by a company to finance its operations.
14. Cost of Capital: The cost of obtaining funds to finance a company’s operations, including the cost of debt and equity.
15. Cash Flow: The movement of cash into and out of a company, including cash generated from operations, investments, and financing activities. Six strategies to fix cash flow problems
16. 13-Week Cash Flow Forecasting: A forecast that provides a short-term outlook for a company’s cash position. This type of projection looks ahead 13 weeks (i.e. three months) and predicts how much cash the company will have on hand at the end of each week.