1 (801) 804-5800 info@preferredcfo.com
Facebooktwitterpinterestlinkedinmail

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
  • Budgeting
  • 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

Jerry Vance

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…

10 Steps to Prepare for Raising Capital

10 Steps to Prepare for Raising Capital

Finding funding for your business is a process that takes a lot of time and effort, especially during the startup phase. Many entrepreneurs fail in their first attempts at fundraising because they are poorly prepared. Others get themselves into trouble by choosing the...

read more
How Can a Fractional CFO Help You Save Money?

How Can a Fractional CFO Help You Save Money?

In these days of economic challenges and changes, many companies struggle with uncertainty about the future, seeking tools and resources to best position their businesses for financial success. Often it can be beneficial to bring in a financial advisor who has...

read more
What is a Capitalization Table and Why Does it Matter?

What is a Capitalization Table and Why Does it Matter?

Capitalization tables, commonly called “cap tables,” are highly useful spreadsheets maintained by companies that have multiple owners or investors. Cap tables are especially important for private companies at startup and in the early stages of the enterprise. They...

read more
Top Benefits of Financial Staff Augmentation

Top Benefits of Financial Staff Augmentation

Many companies experience times when they find their accounting departments short on staff or short on expertise. Sometimes emergencies and financial needs arise that are beyond the capability of their financial personnel to address. This is particularly true in times...

read more
Qualities of an Effective Profit & Loss Report

Qualities of an Effective Profit & Loss Report

A Profit and Loss (P&L) Report, also called a Profit and Loss Statement, is a key financial document that details a company’s income and expenses over a specific period of time. This time period is typically a month, a quarter or a year. Depending on company needs...

read more
What Is a Quality of Earnings Report?

What Is a Quality of Earnings Report?

When a business sale, acquisition, or major investment is contemplated, one important step in the due diligence process is the generation of a Quality of Earnings report, sometimes abbreviated as QOE. Even though a company may have strong financial statements, those...

read more
What Is the Purpose of Accrual Accounting?

What Is the Purpose of Accrual Accounting?

What Is the Purpose of Accrual Accounting? There are two methods of accounting: cash and accrual. In cash accounting, transactions are recorded when payment occurs. In the accrual method, revenues and expenses are matched and recorded at the time the good is delivered...

read more
3 Things to Know Before Choosing a Supplier

3 Things to Know Before Choosing a Supplier

Choosing the right supplier for your business can be complicated, especially if a large portion of your product comes from a single company. For many companies, supplies are secondary only to labor in their expenses. But choosing the right supplier has even more...

read more
How Does a CFO Influence Strategic Decisions?

How Does a CFO Influence Strategic Decisions?

In every company, there are important decisions to be made on a daily basis. Some decisions are mundane and have only short-term consequences. Others are strategic and can affect the company’s performance and profits for years. Too often, these critical decisions are...

read more
Facebooktwitterpinterestlinkedinmail