Interim or Fractional CFO – What Does Your Business Need?
While a CFO might be what your organisation needs, it doesn’t necessarily have to be on a full-time or permanent basis.
Understanding the capacity at which you need a CFO, will ensure you’re making the right hiring decision. Below we discuss the difference between interim and fractional hires and how to determine which is suited to the needs of your business.
What’s an interim CFO?
An interim CFO can be hired on a temporary basis to provide financial leadership during a period of transition or if there’s a gap in your existing team.
They enable businesses to benefit from the skills and knowledge of a highly experienced senior finance professional, without the time and costs associated with a permanent hire.
Is an interim CFO suited to my business?
Interim CFOs are often engaged when organisations are undergoing significant change. This may be during a merger, acquisition, restructuring or following the departure of a key executive.
Whether you need help stabilising your current financial operations or developing long-term strategies, an interim employee can provide a fresh perspective (with an unbiased view), along with objective guidance.
Critically, they can help to ensure that your company’s financial operations remain strong during challenging periods.
Typically, interim employees are brought in for anything from a few months to over a year, depending on the requirements of your organisation. You do of course have the option to extend the contract if both parties wish to do so.
What’s a fractional CFO?
Fractional CFOs provide part-time expertise to companies that don’t have the need or resources for a full-time CFO. They can help you to improve financial operations, streamline processes, make informed strategic decisions and more.
Is a fractional CFO suited to my business?
There are many reasons employers might not require a full-time CFO. Perhaps you don’t have enough work to hire someone on a full-time basis, you can’t afford to do so, or your business often goes through busy periods followed by quiet spells, meaning that workload and cashflow can vary throughout the year.
In this case, an interim CFO is the perfect solution. You can engage employees on a retainer or monthly basis for a fixed fee which can be customised to fit the needs and budget of your organisation. It’s a cost-effective way for companies to improve their financial operations and make informed decisions without adding a huge overhead.
If you’re still unsure whether an interim or fractional CFO would be better suited to your business, get in touch and we’ll be happy to help. Alternatively, you may find the following resources helpful:
