What are fractional CFO services?
Fractional CFO services are when a person or firm provides services that allow companies access to the components and responsibilities that a CFO would usually own. These components include various advanced financial services, usually some combination of accounting, board-adjacent work, modeling, forecasting, and financial planning.
What functions do fractional CFOs provide?
Typical fractional CFO services can include:
Accounting oversight
Developing board decks
Managing models
Developing and updating budgets
Strategic planning
Forecasting changes, additions, and pivots in business
Doing analysis of expectations against what actually occurs (plan vs actual)
Managing cap table
Assisting in fundraising efforts
Guidance on risk
Guidance on market research results
Guidance on financial impact of various business decisions
Sometimes, companies may seek out fractional CFO services to address specific challenges. Because of their multivariable skillset, fractional CFOs can address a variety of challenges and provide value in different areas, allowing them to have a broader impact if desired.
When to hire a fractional CFO?
Companies typically hire fractional CFOs when they do not have the budget or need for a full-time CFO.
Companies in this category are often growing quickly or planning for growth. These companies need well-managed financial planning but have limited budgets or resources. They may have an internal finance team who can manage routine operations but are not able to provide advanced financial insight on challenges like budgeting for growth, preparing for a raise or acquisition, or launching new systems. This is where CFO services come in; fractional CFOs as a cost-effective way of planning for the future on today’s budget.
Most businesses do not need a full time CFO, but they still need accounting and other financial services in order to maximize their business’s growth potential. A fractional CFO sits in the middle of these two options. Companies who intend to hire full-time CFOs in the long-term can look to fractional CFOs to fill this role in the near-term.
Why hire a fractional CFO?
In short: to provide the CFO services listed above at a lower cost bracket or in a more flexible way. But there are several other benefits of hiring a fractional CFO. Fractional CFOs can hit the ground running, saving companies money on training and recruitment.
Fractional CFOs typically have experience at a variety of companies and bring that institutional knowledge to the businesses on their roster. They are used to onboarding quickly and can provide value right away.
Depending on a business’s size, revenue, operational complexity, and KPIs, businesses may have different financial service needs. This can dictate the degree of CFO services a business will engage and can impact contracts and pricing for businesses that decide to pursue fractional CFO services.
If there is a financial team in place, fractional CFOs will step in to collaborate with them and work together to achieve the company’s financial goals. If there are specific financial projects, fractional CFOs will focus their effort on addressing these issues.
Fractional CFOs can be agile or can be focused on one project, depending on the needs of the business.
How are Ursa Consultants different from other CFO service providers?
At Ursa, we integrate CFO services with the other accounting work being provided, essentially giving you two services under one umbrella.
We do things differently when it comes to pricing. It’s common for players offering fractional CFO services to be heads-down and then surprise clients with a bill at the end of the month. At Ursa, we offer transparent and consistent pricing throughout our engagement with clients. We want clients to know the services and deliverables we’re providing throughout, and never be surprised by a bill.
Ursa works as a true business partner alongside its roster of companies. This mindset leads us to develop a higher degree of understanding of the intricacies and the environment surrounding your business. We involve ourselves in the day-to-day operations, increase our knowledge and breadth, and as a result, are better positioned to provide system and process improvements that set us apart as a top tier service provider.
Ursa’s founder and CEO, Jace, has worked cross functionally between the accounting and finance functions of startups since 2014. He has led the functions of over 50 startups and spearheaded diligence efforts for over $200M in accumulated capital raised. Through his time auditing at KPMG and as an experienced consultant, Jace understands the requirements that investors, creditors and boards require of founders.