7 Essential Questions to Ask a Fractional CFO Before you Hire Them
A fractional CFO is considered a strategic hire—one that will help “move the needle” in your company. When hiring this expert, it’s important for organizations to do their due diligence to ensure their fractional CFO has the experience, knowledge, and expertise to perform well in your organization.
1 – What Type of Industries do you Specialize in?
It can be helpful to find a fractional CFO who has experience in your industry or in a comparable industry. This can help your CFO have better benchmarks and market data, competitive analysis, and contacts within the industry. It also ensures they have a good feel for how things work in your industry, including workflows, laws and regulations, and relationships.
2 – What is your Prior Project Experience?
It’s important to know that a fractional CFO’s experience lines up with the type of challenges or initiatives your company is undertaking. Make sure you have a clear feel for the type of projects your fractional CFO has completed in the past, and don’t be afraid to ask for references.
3 – Are your Fractional CFO Services a Side-Hustle or your Primary Method of Income?
You want to make sure your fractional CFO has the time and attention to dedicate to your company. If being a fractional CFO is a side-gig in conjunction with a full-time career, you may not get the time and attention you’re hoping for in a CFO. However, a fractional CFO who intentionally makes providing fractional CFO services their primary form of income is most likely better equipped to provide your company the time and attention you require.
4 – What are my Options if I Have Questions or Concerns About my Services?
While it’s unlikely you’ll be dissatisfied with your fractional CFO services, on occasion you may have questions about the work your receiving or have a specific concern you’d like to address. It’s important to know who you can go to and what the plan of action will be if this is ever the case.
Fractional CFO services are important and often time-sensitive, so you want to feel confident that you’ll never be given the run-around. At Preferred CFO, for instance, our clients are given the personal cell phone number of our CEO and managing partner, Jerry Vance, and can call at any time with any concerns or questions.
5 – Who, Exactly, Will be Performing the Work on my Project?
Most fractional CFO organizations will be thorough in letting you meet and vet the CFO who will lead your case, as well as any controllers or bookkeepers who will assist. Make sure you have a good feel for whether the CFO is simply overseeing work that will be done primarily by the controller or bookkeeper, or whether your fractional CFO will provide the majority of the services for your needs.
6 – What Deliverables can I Expect on this Project?
It’s imperative that you stay in-the-know with the efforts and initiatives produced by your CFO. Before you sign the contract, make sure you have a clear picture of the timeline of events and the specific deliverables to expect from your fractional CFO.
7 – Do you Have References and Case Studies?
Be wary of any fractional CFO organization that is hesitant to hand out contact information or who doesn’t have a track record. A trustworthy expert fractional CFO will have a number of clients who are happy and willing to vouch for their services. It can also be helpful to ask for references in your particular industry or with your specific fractional CFO. It can also be useful to see or discuss case studies relevant to your project to get a feel for how your fractional CFO has approached similar situations in the past.
What Services Does a Fractional CFO Provide?
Fractional CFO services, like most executive services, vary based on a company’s industry, stage of growth, and goals. While the services themselves will be specifically tuned to your company’s particular needs, one thing they all have in common is that a fractional CFO’s main goal is to maximize your profitability and growth potential, to optimize operations, and to create and implement a detailed game plan for accelerated and sustainable growth (or to move you toward a transaction or exit).
Below are some of our most common fractional CFO services:
- Expert Financial Strategy
- Short- & Long-Term Forecasting
- Raising Capital
- Systems Strategy & Design
- Expanding Products, Services, or Geographies
- Optimizing Cash Flow
- Maximizing Margins
- Interim CFO Services
- Accelerating Sustainable Growth
- Mergers & Aquisitions
- Preparing for an Exit
How Can We Help?
Preferred CFO is an elite team of some of the most experienced fractional CFOs and controllers in the United States. At Preferred CFO, high-level strategic financial strategy is our life. If you’re looking for a simple accountant or part-time bookkeeper, we can certainly point you to some of our contacts. But if you are looking for a powerhouse team of CFOs who can make a big impact in your growth and profitability, then you’re in the right place.
Learn more about our fractional CFO team under the About Us tab in our menu, or contact us directly to speak with one of our CFOs. We don’t have salespeople on our staff, because we know as an entrepreneur you don’t want to be pitched or given the runaround with people who don’t actually have experience in finance. Contact us today to speak with an expert about your business and to see if Preferred CFO is the right fit for you.
About the Author
Founder & Managing Partner
Jerry Vance is the founder and managing partner of Preferred CFO. With over 15 years of experience providing CFO consulting services to over 300 organizations, and 28 years in the financial industry, Jerry is one of the most experienced outsourced CFOs in the United States.
You may also be interested in…
Turn on the Headlights: 7 Essential Financial Tools Every CEO Needs to Confidently Accelerate Success & Growth Many businesses make the mistake of believing that financials are all about historical numbers and budgets. However, if these are the financial tools you...
We've recently seen more and more CPA firms, fractional CFOs, and financial experts advertising 13-week cash flow plans. The messaging behind these offers insinuates that this simple 13-week financial reporting document can help businesses ease the burden of financial...
On May 28, 2020, the U.S. House of Representatives approved a bipartisan bill, the Payroll Protection Flexibility Act 417 to 1. On the evening of Wednesday, June 3, this bill passed in the Senate and is now on its way to the President's desk where he is expected to...
The COVID-19 situation has caused financial stress for many businesses, causing uncertainty and leaving many companies with decreased financial security and revenue. What makes this time especially difficult is that not only are many businesses suffering a cash...
Managing Business Cash Flow During a Crisis Early in 2020, we were hit with an international crisis that most businesses were not prepared for. As COVID-19 swept through countries, quarantines and stay-at-home orders created economic stress that caused many business...
Organic vs. Inorganic Growth – Pros, Cons, and an Investor’s Perspective Every company loves to see growth – it’s a signifier of potential success and that things are “working” within the organization. However, not all growth is created equally. In general, growth is...
If your company is preparing to raise capital or if you are currently writing a business plan, you may be getting ready to build your 5-year financial forecast. It can be intimidating to plan this far into the future—as well as knowing what kind of projections to...
7 Common Cash Flow Issues & How to Fix Them Cash flow-related issues are one of the most problematic for organizations. A study by Jessica Hagen of U.S. Bank showed that 82% of businesses that failed had some sort of cash flow issue. However, many cash flow issues...
On September 25, 2019, Troy Skabelund presented a webinar for Navigator Business Solutions to discuss 5 common pitfalls many businesses make when financing inventory. These issues, he explains, are often blind spots to businesses that hold inventory. In this webinar,...