Having organized, clean financial documents is the key to understanding the value of your business and ensuring a smooth transition when you’re ready to begin the acquisition process – but when you’re a busy entrepreneur, things can get messy with your attention being pulled in a hundred different directions. When you’re seriously considering a sale within the next 9-24 months, it’s time to bring in someone to help you prepare for this journey – it’s time to engage a Fractional CFO.
Who Is A Fractional CFO?
A Fractional CFO, also known as an outsourced CFO, is a financial professional that provides management and advisory services on a part-time or project basis. These experts are typically employed by small to medium-sized businesses who may not have the resources for a permanent CFO (Chief Financial Officer), but still require financial expertise and oversight.
Understanding The Differences Between Key Financial Roles
While all Fractional CFOs, Controllers, and CPAs all play critical roles in business financials – they have a number of key differences in their scopes of work:
- Fractional CFO: A Fractional CFO is a strategic financial leader who provides high-level guidance and oversight to businesses. They focus on the broader financial aspects, including financial planning, strategic decision-making, and long-term financial sustainability. Fractional CFOs focus on actions to drive business growth
- Controller: A Controller is responsible for the day-to-day financial operations of a company. They often facilitate the management of internal financial systems and mid-level financial teams. Unlike Fractional CFO, they typically do not provide advisory to executives and work in a more administrative capacity. Controllers focus on communications to ensure streamlined operations.
- CPA: A CPA (Certified Public Accountant) is a financial professional who has met specific educational and examination requirements to achieve this elevated professional designation. CPAs have a narrow, specialty focus in terms of business financial operations handling operations only related to accounting and taxation. CPAs focus on compliance to handle regulation financial obligations.
While a Controller and/or CPA can help keep your books, billings, and taxes in order from a technical perspective, a Fractional CFO provides strategic guidance and focuses on long-term business planning to drive overall success.
