When looking for a fractional CFO, many companies choose to go with a fractional CFO organization as opposed to seeking a freelance fractional CFO. This is because hiring a fractional CFO through a fractional CFO organization is a simpler process and can often come with more assurance than hiring a freelance CFO. A fractional CFO company also tends to have more resources and connections at their disposal than a freelance individual.
6 Benefits of Hiring a Fractional CFO Company over a Freelance Fractional CFO
There are some benefits to hiring a freelance fractional CFO, such as being able to handpick the individual and having a little more flexibility over monthly cost. However, it also takes more legwork and vetting to find the right fit, and can often come with more risk than hiring a fractional CFO company.
Here are # of the main reasons we recommend choosing a fractional CFO company over hiring a freelance fractional CFO:
1 – Simpler Hiring Process
No headhunting, job posting, or interviewing. Fractional CFO companies typically have several expert CFOs on staff and ready to take on your project at any given time. You still have the opportunity to vet the CFO that will be working with your company, but you’re also getting the top picks from the fractional CFO organization which saves you time, money, and resources.
2 – Longer, More Robust Track Record
Working with a fractional CFO company as opposed to a freelance CFO can mean a more thorough proof of service. Fractional CFO companies like Preferred CFO have helped hundreds of clients through a multitude of challenges and have the track record to prove it. Look for a fractional CFO organization that has experience dealing with a variety of challenges and initiatives with multiple industries and with companies at all stages of growth. This conglomeration of knowledge and experience translates into a knowledge and expertise that cannot be replicated by any single individual.
3 – Continuity of Service
If for some reason the CFO assigned to your project doesn’t work out, a fractional CFO company that uses a standardized methodology is better equipped to maintain continuity of service. The services provided by a fractional CFO organization are often standardized across the company, making it easy for a new CFO to pick up where the old CFO left off. There are also more people involved in your project, including controllers, bookkeepers, and in many cases a project manager—or in our case a managing partner & CEO—who oversees all accounts.
4 – Better Able to Hit the Ground Running
While many freelance fractional CFOs are providing fractional CFO services as a side-service to their regular 9-5 careers, a CFO at a fractional CFO organization is typically a fractional CFO by trade. Traditional employees take 8-12 months to get up to speed and working at full-capacity within your organization. However, an experienced fractional CFO is used to taking on new projects and getting up to speed as quickly as possible. The fractional CFO organization will also have systems and processes in place to onboard new clients and hit the ground running so there is no time wasted.
5 – Supported by Controller & Bookkeeping Team
A fractional CFO organization usually has several controllers and bookkeepers on staff to support the CFO’s efforts. In many organizations, the controller and bookkeeping work can create bottlenecks in the implementation of financial strategies. However, a fractional CFO organization usually has enough financial controller and bookkeeping experts on staff to ensure bandwidth never slows down strategy or process.
6 – More Resources & Contacts
In a fractional CFO organization, you usually have dozens of CFOs and financial experts working together to solve problems and achieve objectives for clients. Even though you’ll likely have only one CFO assigned to lead your project, that CFO has regular access to the entire organization’s expertise, contacts, and resources. Partnering with a fractional CFO organization is a great way to get access to some of the best minds in the financial industry for less than the cost of a single in-house full-time hire.
Would You Like to Speak to a Fractional CFO Team Today?
Preferred CFO is led by the most experienced fractional CFO in the industry, Jerry Vance. Jerry created Preferred CFO to offer top-level fractional CFO services to organizations looking for help to achieve goals, resolve challenges, or to support or accelerate growth. Jerry has hand-picked an exclusive team of CFOs, controllers, and bookkeepers and provides fractional CFO services across the United States.
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