Why Should Small Business Owners Hire A Fractional CFO?

by Aleksey Krylov Strategic CFO/Chief Business Officer

Many budding entrepreneurs or small business owners may wonder about the importance and benefits of hiring a fractional Chief Financial Officer when they already have hired a bookkeeper. Although bookkeeping is mandatory, the contributions of a reliable and seasoned CFO are unmatched in every way.

A best-in-class CFO can contribute to the growth and expansion of a small business and take the business reach to the next level. Moreover, these professionals can bring impactful changes to the cash flow and profitability of the business.

Being an integral part of the business management team, a top-grade CFO acts proactively to help business owners make informed decisions and streamline their lives. In short, the expertise and experience of a CFO act as key driving factors of a small company’s growth and success.

What are the Perks of Hiring a Seasoned CFO for a Small Business?

Preparing Budgets & Ensuring Financial Forecasts:

Most small business owners and budding entrepreneurs remain busy with regular business operations, such as creating budgets and prepare financial forecasts.

However, failing to emphasize attention to detail or considering future circumstances can make entrepreneurs end up missing exciting opportunities. As a result, business owners can go off-track and fail to cater to the visions and missions of their businesses.

A best-in-class fractional CFO can evaluate business financials and address pain points to help business owners achieve long-term goals. Precise financial forecasts and budgets help small businesses grow and make a strong presence in the industry.

Witnessing a Higher Profit Level:

Although small businesses maintain profit and loss reports and leverage them to make financial decisions, not all of them are accurate. Moreover, business owners do not get adequate time to recheck the reports and reevaluate the situation.

For instance, if an entrepreneur does not know where the last month’s profit has disappeared, then it is time to take a strong action, such as hiring a top-grade fractional CFO.

A seasoned CFO can help business owners keep track of accurate profits and losses by leveraging industry averages as well as standards. As a result, entrepreneurs can expect profitable returns by alleviating business expenses. It also helps CEOs make improvements in various areas of their businesses.

Taking the Company’s Value to the Next Level:

A top-grade Chief Financial Officer leaves no stone unturned to help entrepreneurs take their company’s value to the next level. As a result, business owners can make informed decisions if they want to sell their business at some point in life.

Wrapping Up

Hiring a trustworthy and experienced fractional CFO can be challenging and cumbersome for many business owners. Nonetheless, taking referrals from trusted sources and checking out online reviews can help entrepreneurs opt for a seasoned CFO based on their budgets, requirements, and expectations.

Verifying the authenticity, credibility, experience level, and success stories of the shortlisted CFO helps business owners hire a reliable and reputable fractional CFO. It is time for entrepreneurs to fix their budgets and jot down their requirements to take the guide, help, and support of a best-in-class fractional CFO.

Author Bio

Aleksey Krylov, a seasoned CFO, stands out in the dynamic fields of life sciences and medical technology. His impressive track record encompasses over 70 triumphant fundraising and M&A ventures, showcasing his strategic prowess. Armed with an MBA from Columbia Business School, he secured over $100 million in funding for CytoImmune Therapeutics and orchestrated DIH International's strategic move to a NASDAQ offering. With a strong commitment to driving growth and innovation, he leaves an indelible mark on the business landscape, embodying excellence and entrepreneurial spirit.

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Created on Feb 24th 2024 02:38. Viewed 102 times.

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