Employing the right people in your team is essential for business success. You need an expert who can make sure everything runs smoothly and that’s where a modern part-time fractional CFO comes in. A modern fractional CFO is invaluable to all businesses regardless of their size, complexity or market for the following reasons –
Use of accurate information for data-driven decisions
The modern fractional CFO oversees data from all areas of the business ensuring this is both accurate and up to date. This is used to provide informed advice on how to proceed with any investment, operation or other strategic initiative within the business.
Ability to adapt
Technology, regulation and laws – especially around your business operations are continually evolving or changing. It is the role of a fractional CFO to both remain up to date in all and to ensure their compliance or application has the best possible outcome for the business. Most recent emergences have been in cloud computing, automation and AI aiding efficiencies in routine tasks and capabilities in management reporting and analysis set against the challenges of home working and cyber security.
This said systems, controls and the level of information needs to be appropriate for the size of the company – ideally with scalability factored in. This needs to be suitable for its intended readers – i.e. senior leadership team, shareholders, executive committee and employees.
There are many MDs which do not completely understand their accounts but feel (incorrectly) reassured by graphs and charts – too much information is as bad as not enough. The best reporting in the world is worthless if its message is not understood!
Maximising Profits
An effective fractional CFO will audit current costs and identify potential areas for cost savings and efficiencies. They also help develop plans for future budgeting and forecasting activities so the business is always aware of their financial outlook ahead of time. A budget is used as a yardstick to compare against actual performance (good or bad), the results of which being used for future forecasts and planning.
Improving Compliance
The modern fractional CFO ensures compliance with accountancy rules and ensures submissions to HMRC and Companies House are both accurate and timely. They keep track of changes in legislation together with compliance with existing rules. This reduces the risk of future fines due to non-compliance issues.
Bringing out the best in the in-house bookkeeping team
A fractional CFO will develop, motivate and provide direction to your in-house bookkeeping team. This will be achieved through setting goals, targets and priorities so ensuring transactions are accurately processed competently performing routine tasks so ensuring reporting is timely and accurate – a true aid to decision making.
The glue to hold other areas of the business together
The fractional CFO’s ability to read business information should enable them to use this to drive informed change. They should be ‘critical friends’ with all areas of the business challenging managers to provide ‘cost-benefit’ for any expenditure or investment purchase done without affecting the ability of the company to carry out its underlying strategy.
Having a modern finance director as part of your team can be invaluable when it comes to maximising profits, improving compliance, and making data-driven decisions within your business – no matter its size! Not only do they provide expertise in various financial matters but they also act as a valuable resource for generating new ideas and strategies for taking your business into different areas.
A modern fractional CFO is invaluable to all businesses regardless of their size, complexity or market. Our flexible tailored packages start from one day per month making this service truly available to all. This is a core specialism of FD Solutions and Accounting please contact us for more information and to discuss our flexible packages.