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Unlocking financial expertise: The power of fractional CFO outsourcing

Aug 29, 2023

An effective CFO helps your organization look forward. They bring valuable financial expertise and guidance that can help businesses navigate challenges, optimize financial operations and make informed decisions — but they also bring a high overhead cost.

To get that same guidance without the full-time salary, turn to a fractional CFO.

A fractional, or outsourced, CFO provides financial expertise mixed with experience in multiple industries to help you solve your financial challenges. And their involvement can be adjusted on demand to the hours, or even to the specific projects, your organization needs.

Consider engaging a fractional CFO if your organization wants:

Optimized processes

Outsourcing your CFO function can give you a deeper understanding of your organization's financial health and performance, making it easier to identify any potential risks or opportunities that may have been overlooked.

By analyzing your financial systems and workflows, a fractional CFO can help identify any inefficiencies or bottlenecks that may be hindering your operations. They can also examine your financial statements, cash flow management, budgeting and forecasting processes, and other key financial indicators to identify areas for improvement.

Additionally, a fractional CFO can also help you implement changes effectively. They bring the soft skills needed to work closely with your leadership to develop and implement actionable strategies and solutions.

A wider range of experience

Fractional CFOs typically have experience working in multiple industries, giving you access to knowledge that you wouldn’t get from a standalone CFO. Bringing that knowledge into your organization can benefit you with:

  • A fresh perspective: A fractional CFO can bring in ideas and strategies that have been proven successful in other sectors, helping your organization stand out from the competition and find new opportunities for growth. They’ve been exposed to different business models, strategies and market trends, which allows them to think outside the box and come up with innovative solutions.
  • A diverse network: Fractional CFOs build relationships with professionals from various sectors, including suppliers, investors and other industry experts. That extensive network can open doors for your organization, providing access to new business opportunities and potential partnerships.
  • Versatility: Fractional CFOs are accustomed to working in dynamic environments and can quickly understand your organization's unique challenges and goals. This adaptability allows them to provide tailored financial solutions and drive positive change within your organization.

Objective insights

As external consultants, fractional CFOs can provide an unbiased perspective on your organization’s financial situation.

They can assess your strengths and weaknesses objectively, without being influenced by internal politics or personal agendas. Greater objectivity also helps them identify the risks, pain points and potential opportunities that may go unnoticed by internal staff.

Strategic decision-making

An outsourced CFO can also improve strategic financial management by providing valuable insights and advice during critical decision-making processes.

One of the core tasks for a CFO is to help the organization with long-term strategy. Fractional CFOs provide that same function, assisting you in evaluating investment opportunities, assessing the financial viability of new projects and identifying potential cost-saving measures. And their expertise in financial analysis helps ensure that decisions are made based on sound financial principles and stay aligned with your organization’s overall strategy.

But the main benefit of using a part-time CFO for strategic decision-making is that they can be more targeted. While you can engage a part-time CFO to help you with wider organizational issues, they can also focus on specific objectives.

It’s not uncommon to fall behind on initiatives or strategic priorities due to a lack of time or dedicated staff. A fractional CFO helps you tackle those strategic projects while freeing up other talent to continue supporting your organization. They give you the additional hours and oversight you need to drive a project or implement the right solutions.

How Wipfli can help

Get the guidance you need to achieve your financial goals with Wipfli. Our fractional CFO services are tailored to fit the unique needs of you organization, helping you make more effective business decisions and increase profitability. Contact us today to learn more about how we can help your organization maintain a growth trajectory.

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Author(s)

Christina Klein Trapp, CPA, MST
Partner
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