Unlocking the Potential: Four Things You Didn’t Know a Fractional CFO Could Do for You
You might think a Fractional CFO functions primarily as an accountant for your business — a number-cruncher who can whip up the reports you need and manage your budget.
The truth is Fractional CFOs can make an impact in all sorts of areas across your entire business — and you might find some a bit surprising. While you might just be looking for financial leadership in your business, a Fractional CFO can deliver that and a lot more.
1. Help guide your HR team
The human resources team often reports up to a company’s full-time CFO, and the right Fractional CFO will have plenty of that experience they can bring to your team. McKinsey estimates that one-third of a company’s revenue goes to human and organizational capital — making HR a clear case for a CFO’s experienced input.
A Fractional CFO can help you manage your HR spend and keep it in line with your business goals, whether that’s expanding into new markets or releasing a new product.
2. Weigh in on operational issues
The right Fractional CFO will also have played a big role in operations at the companies they’ve worked for in the past, bringing that expertise to your company. Don’t forget that CFOs aren’t just responsible for the money — their job is to understand how all facets of the organization work together to achieve company goals.
3. Maximize the value of M&A
One thing that often surprises Crown CFO clients is how much value we can create in their business and how that enhances their M&A opportunities. From deal structure to working capital negotiations/calculations, we know what buyers expect in a merger or acquisition and can help you put your best foot forward.
When it’s time to sell, the experience our Fractional CFOs bring will make sure you get the best possible deal — and increase the probability of it closing. Selling a business is a once-in-a-lifetime event for most people, and you want to make sure you get it right. An experienced Fractional CFO can make it happen.
4. Fight fraud to protect your business
Sadly, we sometimes uncover fraud in our work with small businesses. While we don’t start out looking for fraud, it’s easily uncovered when proper controls and procedures are put in place. As we go about our work, we’ll find that A + B is not adding up to C.
Small businesses are often at the most risk for loss from occupational (employee) fraud — and have the most to lose. The Association of Certified Fraud Examiners found in 2022 that businesses with fewer than 100 employees experienced a median loss of $150,000 due to occupational fraud — the most of any organization size. That kind of loss has a much bigger impact on a small organization than on a large one.
The study also showed that, across all business sizes, nearly half (49%) of occupational fraud was caused by a lack of or override of internal controls — and small businesses were far less likely to have controls in place.
While most small businesses hate to think of one of their trusted employees engaging in this behavior, implementing financial best practices can go a long way toward stopping it or preventing it in the first place. The right Fractional CFO will be able to make sure you’re covered.
Find out what else a Fractional CFO can do
Our Fractional CFOs are experienced in guiding Kansas City businesses across a range of industries and can use their deep, varied experience to handle your finances — and beyond. Contact Mike DeMaio at email@example.com to find out how.