YOUR FRACTIONAL CFO
In the traditional role of a Chief Financial Officer or CFO, the responsibilities are to oversee the management of the finance infrastructure (accounting, treasury, finance) of the organization. However important the role is to an organization, this position doesn't come without adding additional overhead, which can be very costly to any organization looking to growth. This creates the need for an interim CFO or Fractional CFO.
As a fractional CFO, the organization is able to benefit from having an "Off-the-books" financial expert working alongside the organizations decision-makers, while not carrying the burdens of additional salaries, employee benefits, office space, etc. The fractional CFO is especially beneficial to smaller organizations who are experiencing growth but are not yet ready to bring in a full-time Financial Executive.
Think your company is too small to have a chief financial officer (CFO)? Or will you hire one once you’ve reached a certain size or level of profitability? We believe you might find value in having CFO knowledge even for a few hours a month.
Why Hire An Fractional CFO?
Many small businesses and entrepreneurs struggle with important business issues such as cashflow, inventory control, hiring and retaining staff, poorly-used accounting systems, processes and procedures, and cost controls. The right CFO can help you formulate and validate strategies for growth and viability. More than a controller, a CFO provides a financially-oriented voice to the owner. He or she understands “business drivers,” risks, and how to create value. The CFO is someone who works hand-in-hand with the business owner to carefully navigate the opportunities and the risks of taking your business to the next level.
Benefits of Hiring a Fractional CFO
Be more strategic — A CFO can evaluate opportunities and build strategies around markets, geographies, products and services, pricing, and competition.
Sharpen accuracy — CFOs provide timely and accurate financials and metrics, and importantly, good interpretations of those numbers to guide actions.
Manage risk — Every organization needs a right-sized risk prevention infrastructure to protect against fraud, errors, and business risks. An experienced CFO helps identify and mitigate exposure by establishing and enforcing appropriate financial and operational controls.
Manage growth, profitability, cash flow, and expenses — While everyone has some responsibility in these areas, CFOs are the conductor on the train working hand-in-hand with all levels of management and staff to help track these metrics, and make sure performance is in line with company goals and strategy.
Negotiate with suppliers and customers — A CFO can help your company achieve the most advantageous rates, terms and conditions, credit lines, and payment options on the revenue and expense sides of the ledger. This can help ensure that you have the cash flow available to keep operations running smoothly regardless of the state of your organization.
Establish relationships with funding sources and lending institutions — When capital is required, a strong CFO will identify and put in place the right types of capital from multiple investors or lending institutions. This vital role can provide you with the lines of credit or working capital you need to expand.
Manage organizational changes — Mergers, acquisitions, and IPOs are all major ownership changes that your company may want to consider as part of your growth strategy. A CFO with the right background can provide the appropriate quantitative analysis and strategic direction to lead your organization smoothly through the process.
Why Our Clients Love Fractional CFO'S
Experience the peace of mind of having all your company’s financial processes running seamlessly in the background. DMG is centered around the idea of making life easier for entrepreneurs and business owner's.
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