A fractional CFO is one type of outsourced financial executive. They are experienced executives who provide services on a project or recurring basis. The Fractional CFOs offer businesses the flexibility to find the right expertise for their specific growth stage and goals at a fraction of the cost of a full-time executive.

An interim CFO is a strategic advisor who temporarily works with a business, typically full-time, to help a business maintain continuity during a transition in leadership. Interim CFOs can also be hired when a business can’t yet justify a full-time CFO in order to provide dedicated leadership during a special project or transaction.

Interim CFO services can include everyday financial management and strategic advisory, as well as support during major initiatives, such as a capital raise, a merger & acquisition or a turnaround.

Some of the services a CFO offers are:

• Fundraising: Guide venture funding or raising debt to finance growth, developing pitch decks, financial modeling, completing due diligence
• Market expansion: Do competitive research to decide which markets to expand into to maximize return on investment.
• Financial growth strategy: Decide which projects to undertake and assess business initiatives to develop a long-term plan.
• IPOs and exit strategy: Create a strategy for going public or selling the business.
• Cash flow management: Create a sustainable plan when a company’s growth outstrips its capacity to produce, fund operations or reinvest.
• Finance department management: Oversee, mentor and strategically hire finance and accounting personnel.

An outsourced CFO is a financial executive sourced outside of the company. They can be working on a project basis, also known as fractional CFOs, or functioning as dedicated interim CFOs during a leadership transition.

Outsourced CFO services are often provided through an accounting or consulting firm or through a third-party talent marketplace. These remote services are similar to what a traditional CFO would provide, such as financial strategy and planning, fundraising or assessing operational efficiency and opportunities for cost reduction.

The cost of an outsourced CFO varies based on a company’s needs and the experience and skills of the professional. Cost can be on a fixed or hourly basis, and can cost a business anywhere from a few hundred dollars to a few thousand dollars in a month. However, businesses don’t have to pay for benefits or other full-time costs, such as training and onboarding.

The cost of a part-time CFO is similar to that of an outsourced or virtual CFO in that you won’t have to pay the costs associated with full-time employment. However, you can expect to pay several hundred dollars per hour for a highly experienced CFO, and the cost can be well worth it for the long-term benefits to your business.

Virtual CFO services include the typical duties of an in-house CFO, but they are performed by a remote hire. These include funding procurement, overseeing financial operations and growth strategy, as well as many other duties. Virtual CFO services allow businesses to tap into the best available talent across the country rather than be limited to local talent pools.