5 Reasons Why a Fractional CFO Is a Bad Investment

Fractional CFOs are a hot topic among business owners right now. Maybe that’s because it’s so hard to find and hire good people. Or maybe it’s because companies are trying to save money any way they can.

Fractional CFOs are usually older, more experienced executives who are now offering to work part-time or on a contract basis.

“Wow, what a bargain!” you may think. “I can get all this experience for a fraction of the cost!”

But will a part-timer really save you money in the long run? Will a partial CFO, who may not be able to find a full-time job, be able to be a strategic asset on your management team?

1. There’s less chance they can really get to know and understand what your company does and how the operations work.

2. The times they are present at your business may not be when you need them most.

3. They have no skin in the game, as they are not there to grow with you and the business.

4. A good finance person at any level adds value over time. Through direct experience, they will learn enough about the company to be able to point out how management can increase profits and grow faster. A fractional cannot do this.

5. It’s hard to truly get a solid return on your money from a fractional CFO, especially if you don’t have the expertise to hire such people.

We have a track record of helping our clients hire and retain full-time financial professionals who have increased profits by 50% or more. Financial professionals like that more than pay for themselves.

What is your opinion?

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