Why should you consider a fractional CFO in your recruitment strategy?

The growth and expansion plans of the organization, as well as the increase in profit from a financial point of view, are valid arguments in the recruitment process of a fractional CFO. There is no doubt that these changes or adjustments have to be guided by professionals with accounting, administrative and financial expertise.

The importance of recruiting or hiring an outsourced (CFO), as they are also called, contributes to the improvement and updating of the organization’s financial activities and tasks. Thanks to the knowledge and handling of accounting tools such as: Balance Sheet, Profit and Loss Statement, cash flow, financial ratios.

It is important to recognize that optimizing the growth and expansion strategies of the organization requires an accurate reading and interpretation of the information we obtain from the returns on invested capital and the figures we obtain in the cash flow, the balance sheet and the profit and loss statement.

This set of activities should be understood as an important step in improving and updating financial information, assisting in the preparation of cash flow reports, price management reports, and the comparison of the number of targets achieved versus those projected.

A successful fractional CFO will spend time learning the essentials of the company.

For the fractional CFO, the financial and accounting aspect of the organization is a top priority. Hence, the review and study of the data collection generated by the accounting and financial tools, and their application to the administrative process, initiates a process of managerial decision making to improve time and money savings.

The knowledge of the company’s systems and procedures and the handling of financial tools, such as the Balance Sheet, the cash flow, and the profit and loss statement, among others, thanks to the knowledge and experience of the fractional CFO, allows to prioritize and assume the business challenges.

The ability to capture and propose adjustments to financial information in short periods of time can be done by a fractional CFO. Due to his professional capacity, he recognizes the importance of updating financial reports, and the contribution of all this data to elaborate growth plans.

There are cases associated with the administrative staff of a company, where the employees do not have the expertise or do not know how to deal with a strategic situation, and need to be guided or replaced so as to optimize the procedure and its results. A fractional CFO creates and ensures to follow the financial model. By analyzing the concept or definition of a financial model, we could say that it is a version of the company’s financial reality, expressed in numbers. That is why the fractional CFO, because of his expertise and knowledge in financial matters, in his analysis seeks to optimize the administrative processes of decision making.

The construction of this financial model will be based on the study and interconnection of financial tools, such as the Balance Sheet, Profit and Loss Statement, Cash Flow, and the financial ratios obtained.

The importance of the implementation of a financial model in a business requires the knowledge of the employees and the rules and procedures that must be followed by all of them, in order to be able to benefit from the management results. It is also important to point out that one of the professional assets of the fractional CFO is the short period of time it takes to detect problems or failures in the administrative processes associated with finance. Likewise, he/she would analyze the technological tool in use and the products it generates.

Automating, updating and implementing a financial model is the work of a fractional CFO. It is necessary to observe and comply with the administrative regulations, which indicate the management and reading of the results obtained.

Complying with the transit or flow of information is also important in order to keep monitoring the model implemented, in addition to being able to observe and compare the results in an automated way, giving us time to make corrections in the decision making process.

A fractional CFO will automate tasks in order to allow the staff to focus on necessary jobs

The automation of administrative processes of accounting or financial nature, require the previous study of the above mentioned systems, for its update and improvement, allowing the work team to obtain better results, thanks to the focus and facilitation of the tasks to be fulfilled.

This initial activity, performed by the fractional CFO, reinforces the intention of automating the accounting and financial processes, facilitating the staff to perform their functions, which translate into improvements for the growth of the company.

The professional experience of the fractional CFO, once decided to automate the accounting and financial processes, among the most outstanding, allows him to implement technology, facilitating the achievements of optimal results of its employees. Since professional knowledge is accompanied by technological benefits, it allows us to make and study proposals, with time and quantity, that would benefit the company.

A fractional CFO creates and  ensures to follow the financial model

Money and time give the real impression that they walk together and hand in hand. The monitoring and follow-up of financial projects are spectacularly important, because they give us updated and truthful information.

In addition, it allows us to follow up, associating our financial project with our accounting system. Moreover, it allows us to control and realize cash flows based on the projections we make financially, thanks to automation.

The focus on the necessary and important jobs, thanks to automation, would have a daily trend, with the particularity that they will always be scrutinized avoiding the obsolescence of the technology in practice. It is important to clarify that the fractional CFO, recognizes as one of its main work activities, the supervision of the personnel that make up staff, in such a way that it can be updated in case it is necessary, and to be able to fulfill the CFO’s business plans.

More articles

Why hire fractional COO for scale-ups

Scaling up a business is an exciting and challenging time for any entrepreneur. As a company grows, it becomes increasingly complex to manage and requires more specialized skills to keep…

Key roles in startups

In any organization, the decision of whom to hire plays a very crucial role in the future of the organization

Sign up to our