The Fractional CFO space is growing as more companies realize the value an experienced CFO can bring to their bottom line. But if you’ve never had a CFO in your business, you might not know what to look for in a Fractional CFO.

I’ve put together a few tips to guide you based on what we talk to CEOs and business owners about every day. You’ll have a better CFO experience if you make sure they have these five qualities. 

1. They have previous CFO experience

Unfortunately, anyone can call themselves a CFO — there’s no test to take or other qualification process to earn the title. Be cautious: Working with someone under-experienced can take you down the wrong road.  

At the end of the day, you’re looking for someone to bring deep financial experience and expertise to the table. Do your research through LinkedIn and the websites of a candidate’s previous companies to review their CFO experience and find out if it aligns with your needs.

2. They have industry expertise

I’m confident that a qualified CFO can help any business, but imagine if a CFO could walk in ready to work on Day 1 because they already know your customers, vendors, software and all the quirks of your industry. Bringing in someone who can hit the ground running is a big advantage to your company.

That’s also one of the perks of working with a Fractional CFO firm instead of an independent contractor  — you get the hard-earned insights of a whole team across a range of industries.

3. Their perspective fits yours needs

Any Fractional CFO you choose should be focused on forward-looking strategic planning for your business. With that in mind, consider: 

• Does the potential CFO share the same financial philosophies as you?
• Do they understand and align with your goals for the company?
• Are they compatible with your corporate culture? 

While you want to challenge each other and avoid groupthink, choosing someone who’s a general fit for your outlook and mindset will be more productive overall.

4. They’re a match for your budget

Do you need someone two days a week, two hours a month or something in between? A Fractional CFO working two hours a month might be a good sounding board but won’t be able to move mountains.

If you’re looking for major change management within your company, you need to be realistic about your needs and budget to have a CFO working on your behalf more often.

5. They’re a good fit for a long-term relationship

Choosing the right Fractional CFO means finding someone who will be around for the long haul instead of just looking for projects while they seek full-time employment. There’s a big difference.

A long-term relationship means they’ll help you begin looking forward in your business and be there along the way to help you stay on track or adjust when needed.

Embrace the opportunity to add financial expertise to your team

Every company and situation is different. While there’s no perfect way to evaluate potential candidates, keeping the above points in mind will increase the success of your engagement and help you hire the right Fractional CFO for your company.

If you’re in Kansas City, Crown CFO has a CFO that’s a perfect fit for your company. Contact Kerry George [email protected] to bring a trusted, expert Fractional CFO to your business.