Frequently Asked Questions
About what's a Fractional CFO...
How do I know if I need a fractional CFO?
To figure out if a fractional CFO is right for you, consider your business needs. If you’re having trouble with financial management, require strategic financial decision-making, business growth strategies, or want to make better financial decisions, a fractional CFO could be a valuable asset.
As a Fractional CFO firm, we are here to make your purpose more profitable by becoming your finance team.
Is a Fractional CFO the same as an accountant and a bookkeeper?
- Not exactly. In the small business world, a business owner refers to an accountant as someone who prepares your tax return. They do not provide a strategic direction for the company. An accountant could also be someone who handles the day-to-day recording of your business and understands how the day-to-day can impact the profit and loss and the balance sheet.
- A bookkeeper is someone who records the day to day invoice and bills and bank transactions, but not necessarily understand the impact any transactions have on the profit and loss and the balance sheet.
- In contrast, a Fractional CFO has extensive experience in the operational aspects of a business and this role is your trusted advisor. They offer valuable insights and practical know-how that can lead your business growth to the next level. They have a broader perspective and can translate it into effective strategies.
What is the difference between a Fractional CFO and a Chief Financial Officer?
- Both Fractional CFO role and CFO role are an experienced finance senior executive. They join your leadership team, bringing their strategic finance expertise, overseeing a company’s financial operations, managing the finance team and providing guidance on the cash flow and forecasting as well as ensuring accurate and timely completion of the company’s financial reports.
- The big difference is the frequency of their involvement with the company. A Fractional CFO partners with you on a part-time basis until you and your business are ready to hire a full-time CFO. A CFO, on the other hand, partners with you on a full-time basis.
Will hiring a fractional CFO reduce my workload?
Bringing in a Fractional CFO can make your workload more efficient. They’ll spot gaps in your financial processes and create a strategy tailored to your needs.
Fractional CFOs are experts in finance and planning, handling complex financial tasks. This lets you focus on other aspects of your business and ultimately lightens your workload.
Shared values and alignment between your business and your accountability partner, a.k.a. Fractional CFO, are crucial for achieving the best results.
How can I determine if my business is prepared to engage a Fractional CFO?
- You’re a women founder leading a mission-driven business. Alignment of values is essential for both parties.
- Your business has achieved total revenue exceeding $1 MM USD and above in the past year.
- You’re in a growth phase and require expert financial advice or strategic planning for expansion.
- Your business requires customized solutions for specific milestones.
- You need assistance in getting ready for financial due diligence.
- Your business is in search of strategic counsel, to create and improve your overall forecast processes.
If I’m not ready to hire either a Fractional CFO or a CFO, how can I prepare my business finances for future engagement with a Fractional CFO?
As you grow your business to the next level, one of the most important steps you can take is to ensure that your finances and financial foundation are in good shape and capable of sustaining your company’s growth.
This means having someone in charge of accounting who ensures that month-end procedures are properly completed.
This includes reconciling not only bank statements but also critical accounts such as accounts receivable, accounts payable, payroll liabilities, revenue, and cost of services. These accounts should be thoroughly maintained and reviewed every month.
Additionally, it’s crucial to establish a clear report structure that suits your business, which means, the monthly report should tell you if you have a good grasp of your gross margin, and if you understand the components of your operating expenses.
A disorganized reporting structure can create confusion for a CEO trying to comprehend the business’ financial health.
We hope the information above can assist you in preparing your business for the next level.
When the time is right, we are here to support your success!
About Profit Reimagined™ Inc...
Will a Fractional CFO from Profit Reimagined be on my leadership team?
Even though a Fractional CFO’s role is more like a Strategic Advisor, we work closely with your leadership team. We provide financial insights and guidance to help your business grow.
As a busy founder running a growing business, let us contribute to your success.
Do you offer standalone bookkeeping, accounting, and tax services?
No, we exclusively provide Fractional CFO and Advisory Services.
What is the pricing Profit Reimagined charge?
To provide you with the best support, we begin with a 6-month contract commitment. This helps us gain a deep understanding of your business model and tailor solutions for your success.
Our pricing is customized to meet your specific business needs. If we find that our services might strain your finances, we’ll work to suggest a more suitable solution.
Is Profit Reimagined™ Inc. designed for startups or early-stage companies?
If you are a startup or your business is in its early stages, we may not be the best fit for your current needs. Profit Reimagined™ Inc. is oriented towards businesses that are prepared for growth or scaling. Nevertheless, we are more than willing to provide you with financial resources that can aid your understanding of your business in the initial stages of its lifecycle. You can start with our podcast and our blog.
How much time will it take to work with you each month?
The time spent working with us can vary based on your specific needs and the complexity of your operation.
Typically, you’ll dedicate a few hours each month to sit down together with our team. The frequency can be adjusted to align with your requirements and budget.
Are Profit Reimagined™ Inc. services exclusively for women founders?
We hold the belief that the world could benefit from a greater number of successful women founders who establish and manage sustainable businesses. We specifically opt to collaborate with women women, women CEOs, or women in senior positions. Our goal is to enhance the profitability of your purpose by becoming an integral part of your finance team. However, we welcome anyone who believes in seeing more women succeed in business.
Is Profit Reimagined™ Inc. a virtual service?
Absolutely! We operate as a fully distributed team. You’ll have the opportunity to collaborate with dedicated finance professionals who are deeply invested in your business’s success. We don’t just advice from a distance; we dive in and work closely alongside you.
Is Profit Reimagined™ Inc. a B Corp?
Yes, and we love it! We’re incredibly proud of it. We firmly believe in the positive impact of business. That’s why we’re thrilled to be B Corp certified and active members of B1G1.
