A fractional CFO is a cost-effective alternative to hiring a full-time CFO for your company. They bring a wealth of financial and strategic experience to your business and can provide guidance on accounting & finance issues specific to your business, helping you, thereby, achieve your strategic goals.

A fractional CFO can also help with budgeting, forecasting, and financial reporting and provide a fresh perspective on your financial strategy. With a fractional CFO, you can get the benefits of having a CFO without the long-term commitment or the high cost of a full-time employee

The role of a Chief Financial Officer (CFO) is to provide financial leadership and support to the business. The specific responsibilities of a CFO may include the following:

• Financial planning and analysis: The CFO will work with the management team to develop financial plans, budgets, and forecasts that align with the company’s overall strategy. They will also analyze financial performance and provide insights to support decision-making.
• Financial reporting: The CFO produces accurate and timely financial reports for internal and external stakeholders, including board members, investors, and regulators.
• Pricing strategy: In a CPG company, the CFO will play a key role in setting pricing strategies that balance profitability and market competitiveness.
• Cost management: The CFO will work to optimize costs and manage margins, including analyzing and controlling direct and indirect costs of goods sold.
• Business performance improvement: The CFO will work with the management team to identify areas for improvement and implement initiatives to increase efficiency, profitability, and growth.
  

Before hiring a virtual CFO, you must judge whether the individual is of the required caliber. He should have knowledge and skills related to finance, accounting, and business strategy. It would help if you also evaluate whether the fractional CFO has experience working in your industry. You can consider asking for the individual/company’s references to assess the virtual CFO’s past performance, including the results he might have achieved for previous clients. The next step can be to ensure that the CFO is available and can work with your schedule. Consider their ability to work remotely and the technology they use.
Lastly, choose a CFO that you trust and in whose ability to safeguard your company’s financial interests you can confide.