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When Should a Company Hire a Fractional CFO (Part-Time CFO)?

CFO-DevelopmentPlain and simple, the best time is when a company needs to get the expertise needed at a fraction of the cost. 

Most small companies have many of the same needs to that of a large business when it comes to the finance and accounting function.  The biggest difference is that they don’t need it on a full-time basis, along with the sizable salary and benefits expense.

The company’s intent may be to grow to a size needing a full-time Chief Financial Officer, but they are not there yet.

In a growing company, management at some point will decide it needs a more a strategic decision making process in its Finance & Accounting functions. 

Preparing financial projections & related strategy will help better plan for the future and understand the capital requirements of the business needed to attain the growth is seeks.

At this point, many companies often make the mistake of hiring a full-time CFO when the job itself does not require full-time support. This will create two major issues:

1.  It can financially strap the company when it is not ready to support the salary requirement of a full-time CFO, and

2.  Create an environment where the company ends up asking the CFO to perform non-related tasks that may simply be outside of that particular employees area of expertise.

This Company needs to consider the idea of a part-time CFO (Fractional CFO Services).  By bringing in a financial & accounting expert at a fraction of the cost, the company is able to cover the entire spectrum of needs for the business in a much more cost effective manner.

Robert P. Brown, Director of CFO Services

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