5 Benefits Of Hiring A Fractional Cfo For Cannabis

fractional cfo

Let us help prepare documents, oversee due diligence, tap into our robust lending and investing network, negotiate contracts, and more. Our fractional CFOs will forecast your capital needs , strategize the best debt-equity mix, and oversee the raise. What you don’t know is how many hours a fractional CFO will quote you. Individual efficiency and quality vary quite a bit, which affects your overall cost. Manufacturing, transportation, distribution, real estate and construction are very financially complex and require a specialty fractional CFO.

Various firms come to siliconCFO in search for someone who can simply bring best practices with them and implement them at their quickly growing startup. Founders should take their time to find the right fractional CFO for their startup. It’s important to choose a CFO that fits your needs, work ethic, and experience requirements. Finding the right CFO for a startup is a tough task and is the main reason why siliconCFO exists! A CFO’s role isstrategic, which means they can streamline processes, drive goal setting, and create the financial infrastructure that supports a company’s ability to grow and scale. In other words, a CFO helps the CEO plan for the future – whether it’s three months, six months, or one year – while keeping track of the firm’s progress over time.

Our team brings extensive professional experience to assist businesses with their accounting needs. CFOs report to the Board of Directors, CEOs and C-Suite Team Members to implement their directives and most importantly, they create shareholder value. To ensure the profitability of the business, CFOs have many unique responsibilities to support and enable the growth of your company.

Your Team

When you contract with a unearned revenue you’re getting all the skills and experience of a regular CFO, but on a part-time basis. They have the expertise and industry experience to move the needle in your business. We tell our clients to consider your Fractional CFO to be an investment, not an expense.

fractional cfo

For some companies, hiring a fractional CFO would fulfill only a portion of their needs. They still need help managing their day-to-day finances, preparing financial statements, and completing taxes, which is where bookkeepers and accountants can help. Delegating everything to an outsourced CFO would be an expensive and poor use of their talents. Companies bring in a fractional CFO for this work because they either lack the resources and/or skills to tackle such financial challenges. Or, they want an outside, unbiased opinion to inform their financial strategy. Wolf and company is one of the leading public accountant and business consulting agency in the United States.

Decades Of Experience At Your Fingertips

Another instance of fulfilling immediacy necessities is if an existing CFO suddenly leaves your business. Bringing on a part-time cannabis CFO ensures you can continue your operations without any hiccups or delays. This is someone who immediately comes in to fulfill your business’s financial needs. Without the exhaustive search for a full-time CFO, it’s an option to allocate it towards other important business matters. Hiring a part-time CFO is even an option for as you’re going through these transitions. For instance, if you’re trying to secure outside financing or expanding into new markets, it might not be an option to bring someone in full-time. However, a part-time CFO is a viable option to fuel your cannabusiness’s growth.

On some occasions, our clients need a fulltime CFO for up to six months. We refer to this as an interim CFO that can help with accounting services and managing growth. But 90 percent of our clients engage us part-time, typically for five to fifteen hours per week to help with business decisions. Often, these part-time team members can offer impartial advice that brings your business’s operations to the next level, as well. For difficult decisions, it could be a good option to seek advice from an outsourced cannabis CFO, especially when considering the additional experience these professionals have across the industry. Improve management performance.In order for a company to achieve strategic alignment, the operations of the firm must be assessed and managed.

Probably the most obvious advantage is the ability to have a seasoned veteran on the team at a fraction of what it would cost to hire a full-time equivalent. Most fractional CFOs also have experience with many different companies. This allows them to have a very unique lens to view the company through. Additionally, both the organization and the fractional CFO have the opportunity to initially work together on a limited scope and can get a sense of whether or not there is a good cultural fit for all involved.

Other times, you might need to scale back their services to fulfill some other financial demands. Regardless, when you have a part-time CFO, you can allocate funds to increase their focus on your cannabusiness or to boost another aspect of your business that promotes its scalability. Kevin is a QuickBooks Certified ProAdvisor and member of the American Institute of Professional Bookkeepers. His diverse educational background and accounting services experience benefit small businesses in all industries.

Generally, a fractional CFO engagement tends to last about 3 months, it could also be much longer depending on if the CFO is being replaced. That being said, there have been cases where a fractional CFO engagement lasted from 6 months to about 5 years. However, when it comes to engagements, the most common ones tend to last 1 to 2 years. Experience across companies of different sizes—from entrepreneurial endeavors to blue-chip firms.

  • That being said, there have been cases where a fractional CFO engagement lasted from 6 months to about 5 years.
  • Since a fractional CFO is a “use them when you need them” kind of position, you’ll never feel like you’re paying for time and work that is unnecessary.
  • It might be good to bring in a fractional CFO during peak season because he can be available in the heat of the moment.
  • Our goal is to help companies move the needle by scaling and accelerating growth, optimizing resources, overcoming obstacles, and maximizing shareholder value.

Kevin’s diverse educational background and accounting services experience benefit small businesses in all industries. Our CFO services provide the experience and creativity needed to help you do things easier, faster, and more efficiently. This knowledge helps drive greater productivity throughout your business, resulting in greater profitability. Solution – Change their operating accounting method from Cash to Accrual Basis.

What Is A Fractional Cfo Service?

The easiest fit is a company that needs financial and strategic leadership — a person to assist the owner in financial decisions and defining the path forward. Ed is an executive with 30 years of experience leading management and strategic planning resulting in M&A deal completions and subsequent “hands-on” integration. His passion and deep experience in managing M&A transactions includes 5 deal completions in 7 years as President of a multi-channel Retail CPG manufacturer-distributor providing $104 million in new retail revenue. Fractional CFOs can also usually perform or direct the administrative functions of your business, from assisting with HR through facilities and stakeholder relations. This allows for an immense amount of freed-up time that can be better spent on enhancing other parts of your business. The more time made available to business owners, the more productive they can be in achieving their organization’s goals.

fractional cfo

The Ascent CFO team is ready to give your company the financial expertise you need, when you need it. A CFO is not just a manager implementing financial planning, but is rather the fulcrum of the financial leadership. The fractional CFO also works alongside the company’s controller and other accounting staff to ensure the company’s financial statements are in order. Many times, the fractional CFO will close the month’s books after the accounting staff have entered their data and then issue the financial statements. This adds an extra layer of oversight and can provide additional internal controls to ensure best practices are being followed. Flexibility and the ability to build something are key components of the role that may differ from a full-time job. Every CFO position is different; however, this largely depends on the needs of the company in hiring a CFO.

Cap Table Management & Planning

Rethink CFO supports our clients by managing these additional services. Dialled in leadership realizes the importance of strategic planning. With Rethink CFO, goals, plans, and accountability discussions are focused on metrics. Rethink CFO will ensure the proper financial systems and processes are put into place so that the company is compliant with tax requirements. This entails implementing systems, bookkeeping, and structured reporting. Generally speaking, a part-time CFO costs between $3,000-$10,000 per month.

The information on this website is for informational purposes only; it is deemed accurate but not guaranteed. Testimonials are not a guarantee, warranty or prediction of what your experience with us will be. By providing certain contact information herein, you are expressly authorizing the recipient of this message to contact you via the methods of communication provided. fractional cfo Problem – An e-tailer doing $45 million in sales had financial reports showing months of solid profits, alternating with months of deep losses. The owners were satisfied with the results until the company ran out of cash. Curating financial data – Set policy and infrastructure to yield the quality and presentation of financial data investors are accustomed to seeing.

They would need to be trustworthy in order to analyse the organisation’s financial strengths and weaknesses, track cash flow, and propose corrective actions. XcelHR does not only exist to run payroll, administer HR, and provide cost-effective solutions for benefits. They exist to assist you grow and guide you through the journey of employee management. They provide rules and guidelines that help keep you from making costly errors. Their services can lower the cost of benefits administration and workers’ compensation insurance, allowing you to realize other efficiencies that will boost your bottom line. At KRUZE they assist you in raising capital or beginning hyper-growth? They offer professional CPA’s & Automated Systems deliver books that you and your investors can trust.

Short on cash, he cut back on inventory purchases to build cash reserves. This guide was based on the rankings of Wimgo, a company that ranks service providers. We are powered by people who do business the Midwest way, delivering comprehensive business, financial and technology solutions. The cost of a Fractional CFO can be anywhere from Free to $10k per month, but the average is around $3k to $5k per month. Most CFOs will charge within that range, but there are always outliers. CFOs outside the US, in countries with a lower cost-of-living, might charge as little as $30 per hour. On the other hand, CFOs who are incredibly experienced and efficient can charge up to $500 per hour.

Part-time CFOs can fulfill your cannabusiness’s financial obligations with expertise and knowledge leading the way. As a cannabis business operator, it’s easy to get “tunnel vision.” Sometimes, we can become so focused on managing the business that we forget to think outside the box. However, bringing on a fractional CFO offers a new opinion that can add to your business’s success.

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We truly step in as your CFO to provide your team with financial insight and the elbow grease to get things done. The only difference for us at New Life CFO is that we serve the smaller entrepreneurial business market, companies without enough full time CFO level work to justify adding a $250,000 salary to the payroll. We pride ourselves in the diversity of our fractional CFOs’ industry backgrounds. Let us know what you’re looking for and we will share our information sheets of the best fractional CFOs we have to fit your needs. Most of our agreements are months to maximize impact, though we do offer shorter term project solutions.

At times, a corporate action could put a member at risk of being personally conflicted. In these cases, a fractional CFO can be parachuted in as an interim board member to oversee the event, free of any conflicts.

The projects a fractional CFO can assist with are multi-disciplined and split between financial and non-financial duties. The role of the CFO is complex and can be unbundled into specific pain points and influence areas. Natasha transitioned to venture capital after a career in banking built in prestigious firms such as JPMorgan and ESM. The five-level service offering we provide is designed to align with your business’s current needs and to help take it forward to where you desire to grow. Rethink CFO works with innovative growing companies looking to dial up their financial capabilities. Focused attention for deeper analysis and discussion with you of what’s working, what’s not working and what can be done to improve financial performance.

A bookkeeping provides high-end knowledge and expertise at just a fraction of the cost, which is what makes this option so compelling. LTV, CAC, CAC payback, MRR, ARR, pipeline, bookings, revenue, deferred revenue, TCV, ACV, COGS, GM, MAU, CMGR, churn, burn, the list goes on. Our CFO services allow startups to understand business performance better and provide data for quarterly investor reporting. A fractional CFO should be a strategist, being able to assist the CEO in novel opportunities, becoming more strategic, and taking on a role more akin to a business partner. This means being able to set goals for the company which the finance team can work towards.

I’ll listen to your story and ask about your biggest challenges, the current state of your business, and your plans for the future. Leaders have a lot on their minds – everything from day-to-day problems to big picture strategic issues. I can alleviate some of that weight and add value by acting as a sounding board. It’s often helpful to get a second point of view from a seasoned executive who knows your business. See if they can charge you a flat rate, otherwise set a retainer with a lower hourly rate. This will provide you with a lower hourly cost and stable monthly payments while giving them predictability in their monthly income. Allow for you to be more financially focused from the start by taking the finance function off your plate and applying their expertise to your business.

Fractional CFOs could be particularly useful during times of significant change. This can include not only periods of high growth, but downturns as well. Either one of these scenarios may be new to you as a small business owner.

Author: Kevin Roose