Is your business growing, and your finances feel increasingly complex? If you're not ready to invest in a full-time CFO, a fractional CFO can provide the high-level financial strategy and clarity you need during this critical stage of growth. Here are some key considerations.

Quick Takeaways

• A fractional CFO offers high-level financial strategy without the full-time cost.
• Ideal for growing businesses that need financial leadership but aren’t ready to hire a full-time CFO.
• Fractional CFOs help manage cash flow, support fundraising, and bring clarity to financial decision-making.

Do You Need a Fractional CFO? 5 Key Questions to Ask

Unsure of the right path for your business? Here are five key questions to consider.

1. Is your business growing rapidly? Suffice to say, as businesses grow, finances get more and more complex. As a key leader, you are likely already juggling multiple responsibilities, so financial planning might be at the bottom of that list. By bringing on a fractional CFO, you can build strong financial systems, clarify your cash position and develop valuable financial strategies that support your company’s growth. With these key duties under their care, you can focus more on hiring, launching new products and entering new markets (without losing sight of your finances).
2. Are you unable to afford a full-time CFO at this time? Hiring a full-time CFO takes a great deal of time and money. If that is currently out of reach, hiring a factional CFO provides you that expert level guidance at a much lower cost.
3. Is cash flow becoming a problem? Are you dealing with delayed receivables, inconsistent payments or cash flow stress? Bringing on a fractional CFO will help streamline your accounts receivable and payable processes, improve cash flow forecasting and keep working capital in check.
4. Are you looking to fundraise? Investors are looking for more than a pitch deck, they expect a solid financial picture of your business (including accurate projections, compliance and your plans for growth). A fractional CFO can help prepare your financials for due diligence, build investor ready models and ensure you’re presenting a strong, audit-ready case to potential investors.
5. Are you looking to move beyond just bookkeeping? Bookkeeping, though essential for staying compliant and organized, does not provide the strategic insight needed to get your business to that next step in strategic growth. A fractional CFO can help you align your financial strategy with business goals and help you spot opportunities to make smarter, data-driven decisions. They can help identify trends, forecast growth and make informed decisions to support long-term success. 

Real-World Example: Benefits of Bringing on a Fractional CFO

Check out our case study, Environmental Pools experiences a 20% increase in profits ($20 million to $24 million) after working with KLR Outsourcing.

Here’s a sneak peek:

Challenge: Environmental Pools, a fast-growing family-owned business, was facing growing pains (project backlogs, inaccurate job costing, and lack of financial visibility). Despite increasing revenue, they were operating without a clear picture of profitability and financial direction.

Action: Instead of hiring a full-time CFO, the CEO turned to a fractional CFO through KLR Outsourcing (strategic financial leadership without the full-time cost).

Solution: The fractional CFO helped implement better job costing, financial forecasting, automated accounting systems (including AI-based tools), and long-term goal planning. Among other key results, this helped EP achieve a 20% increase in profitability (from $20M to $24M in 8 months).

Read the full case study here.

FAQ: Fractional CFOs for Growing Businesses

1. How is a fractional CFO different from a bookkeeper or accountant? Bookkeepers focus on day-to-day transactions. Accountants help with tax and compliance. A fractional CFO looks at the big picture and helps guide growth and strategy.
2. How much time will I get with a fractional CFO? That depends on your needs. Many businesses start with a few hours per week or month and adjust as needed.
3. What size or stage of business benefits most from a fractional CFO? Typically, companies that are scaling quickly, preparing for investment, or facing financial complexity, but aren't yet ready for a full-time CFO, are the best fit for a fractional CFO.
4. Is it easy to scale up or down with a fractional CFO?
   Yes, one of the biggest benefits is flexibility. You can adjust the level of support based on your evolving business needs.