A fractional CFO is a wise investment in any economic climate, but during a recession, their input can truly be critical. No business is totally recession-proof, but a fractional CFO can provide expert-level guidance to help you weather the storm. Here’s how a fractional CFO can help you.
What Is a Fractional CFO?
A fractional CFO is an individual or organization that serves as your company’s Chief Financial Officer (CFO) on a part-time or contractual basis. With this arrangement, your business gets all of the advantages of having a CFO but at a fraction of the cost of hiring a financial professional.
Fractional CFO services are often offered through online accounting firms, which can provide virtual financial services that give you access to world-class financial advice from anywhere in the country.
How a Fractional CFO Can Help During a Recession
During a recession, you might be resistant to investing in new products or services. But investing in a fractional CFO can actually help you survive a recession. Here’s how.
Reduced Operating Costs
Hiring a full-time financial consultant can be costly, but a fractional CFO offers industry-leading advice without the expense of hiring an actual employee. Additionally, many fractional CFOs work remotely, so you won’t have to worry about carving out valuable office space. This convenience likewise reduces your operating burdens.
Boost in Productivity
Chances are that you and your employees are trying to handle your financial decisions on your own. But the time you’re spending on these administrative needs only steals focus from your core business activities.
A fractional CFO will help you handle these operational needs and allow you to stay focused on the revenue-generating activities your business needs to thrive during an economic recession.
Specialized Experience
Most fractional CFOs are found through accounting firms that hire whole teams of financial professionals. Investing in a fractional CFO service means you’ll partner with a CFO who can offer industry-specific help and guidance to you and your team.
A fractional CFO will usually also bring advanced education and an understanding of current best practices that can improve your operational viability both in and out of a recession.
Economic Guidance in a Period of Uncertainty
One of the most important things that a fractional CFO can do is offer advice and guidance. Again, this is especially valuable during a recession, when the path forward seems unclear.
A fractional CFO can provide a broader perspective of the state of the economy and introduce solutions to help you know when to focus on maintenance and when to take on new opportunities and initiatives.
Better Internal Controls
During a recession, mistakes and fraud are some of the last things you want to worry about. A fractional CFO places your company under constant watch, adding an additional, unbiased layer of accountability.
This monitoring helps to minimize — if not eliminate — instances of financial fraud as well as provide support for ongoing reconciliations and other financial processes. This service keeps you up to date and allows you to measure your progress toward your most important benchmarks and KPIs.
Accurate, Up-to-Date Reporting
Fractional CFO services ensure that you and your team are always operating with the best information. A fractional CFO can help you develop revenue forecasts and budget projections that offer clarity regarding the future of your company.
Because fractional CFOs typically operate with online accounting firms, you’ll enjoy 24/7 access to your most valuable information. These reports and data can be especially helpful if you need to apply for financing to cover your expenses as a recession persists.
Improved Stakeholder Confidence
Investors and other stakeholders appreciate companies that adapt and innovate. Hiring a fractional CFO can give your stakeholders greater assurance that your company can weather the current economic climate.
A fractional CFO can also help you identify ways to stay ahead of the competition, and having this edge may entice other investors to support your company.
Don’t Just Survive — Thrive
At Zabel and Co., we understand the challenges business owners face during a season of economic instability. That’s why we offer fractional CFO services that can help you stay the course, if not thrive, during a recession. To discuss your options, contact our team today.