As a small business owner or the executive director of a nonprofit organization, managing finances effectively is crucial for your success. While you may already have a bookkeeper or an accountant to handle day-to-day financial tasks, you might find that your organization requires more specialized financial guidance. That’s where a Fractional CFO comes into play, and you’ll need a job description to hire one.
In this blog post, we will provide you with an in-depth understanding of what a Fractional CFO is, their hourly rate, retainer strategy, salary, and most importantly, a detailed job description for you to edit, post online, and find the perfect fit for your organization.
What is a Fractional CFO?
A Fractional CFO is a financial expert who offers their services on a flexible basis. Unlike a full-time CFO, a Fractional CFO works with multiple clients, providing expert financial advice without the cost of hiring a permanent executive. They are an ideal solution for small businesses and nonprofits that need high-level financial expertise but don’t require a full-time CFO’s commitment.
Fractional CFO Job Description
To effectively communicate your requirement for a Fractional CFO, it’s crucial to have a well-thought-out job description. Essential components of this should include a comprehensive introduction to your company, a detailed job overview, responsibilities, requisite skills and qualifications, availability expectations, and application instructions. Here is a guide to help you craft the perfect job description:
Company Introduction
Commence by presenting a thorough yet succinct introduction to your organization. Detail out your mission, unique attributes, and core values.
Job Description
Follow the introduction with a brief overview of the job. Discuss the expectations from the role and the kind of candidate you are looking for.
Responsibilities
Highlight the responsibilities that will be entrusted to the Fractional CFO, such as strategic planning, financial operations oversight, financial reporting, and advising on fundraising efforts.
Skills and Qualifications
Specify the educational qualifications, experience, skills, and certifications required for the role. Highlight the need for excellent communication skills, decision-making abilities, and knowledge of financial analysis, budgeting, and forecasting.
Availability
While the role is part-time, specify your requirements for regular availability for team meetings and finance-related discussions.
How to Apply
Conclude with the application procedure. Request the inclusion of a detailed resume, cover letter, references, and any additional certifications.
Template Fractional CFO Job Description
Company Introduction
[Your Organization’s Name] is a [brief description of your organization and its mission]. We are a [mention any unique attributes, such as being a locally-owned business or a well-established nonprofit] dedicated to [organization’s core values and objectives].
Job Description
We are seeking an experienced and highly skilled Fractional CFO to join our team on a part-time basis. The ideal candidate will be a strategic financial leader with a proven track record of guiding small businesses or nonprofits toward financial success. As a Fractional CFO, you will work remotely [or on-site as needed] to provide valuable financial insights and expertise, helping us make informed decisions to achieve our short-term and long-term goals.
Responsibilities
- Collaborate with the executive team to develop and implement financial strategies that align with our organization’s objectives.
- Provide expert financial guidance on budgeting, forecasting, and cash flow management to ensure financial stability and growth.
- Conduct regular financial analyses and prepare comprehensive reports to present to the leadership team and board of directors.
- Oversee financial operations, including accounts payable, accounts receivable, and payroll processes, to ensure accuracy and compliance.
- Review and improve existing financial policies, procedures, and internal controls to optimize financial efficiency.
- Assist in fundraising efforts and grant applications by providing financial projections and financial information for donors and grantors.
- Stay updated on industry trends, regulatory changes, and best practices to ensure our organization remains financially compliant and competitive.
Skills and Qualifications
- Bachelor’s degree in finance, accounting, or a related field. MBA or CPA qualification preferred.
- years of experience as a CFO, Financial Controller, or in a similar financial leadership role.
- Proven experience working with small businesses or nonprofit organizations.
- In-depth knowledge of financial analysis, budgeting, forecasting, and financial modeling.
- Familiarity with accounting software and financial management tools.
- Strong understanding of nonprofit accounting principles (for nonprofit organizations).
- Excellent communication and presentation skills, with the ability to convey complex financial information to non-financial stakeholders.
- Exceptional problem-solving and decision-making abilities, coupled with a strategic mindset.
- Demonstrated ability to work independently and effectively manage time and deliverables.
Availability
In this role, the Fractional CFO is expected to provide consistent, reliable services to our organization. While the nature of a Fractional CFO’s role is part-time, we require regular availability for team meetings, consultations, and urgent finance-related discussions. The flexibility of hours is one of the benefits of hiring a Fractional CFO; however, our ideal candidate will also understand our need for routine interactions, scheduled updates, and critical decision-making meetings. We value both the independent work and collaborative efforts in achieving our organization’s financial objectives.
How to Apply
Interested candidates are encouraged to apply via our online application portal (insert link here). To help us understand your capabilities better, we ask you to include your detailed resume highlighting your relevant experiences and achievements, a cover letter expressing your interest and why you are a good fit for this role, and two references we may contact for more insights into your work ethics and capabilities. Any certifications, such as an MBA or CPA qualification, should also be noted. The application deadline is (insert date), and only shortlisted candidates will be contacted for an interview.
Contact or Learn More
We encourage interested candidates to visit our website at [Insert Website Here] to learn more about our organization, its mission, and the impact we’re making in our community.
For more insights into our organization’s culture, day-to-day operations, and the team you’d be working with, feel free to follow us on our social media platforms:
- Facebook: [Insert Facebook Page Link Here]
- LinkedIn: [Insert LinkedIn Page Link Here]
- Instagram: [Insert Instagram Page Link Here]
- Twitter: [Insert Twitter Page Link Here]
For any further questions regarding the role, application process, or anything else you’d like to know, please reach out to our hiring team at [Insert Contact Email Here].
We look forward to receiving your application and potentially welcoming you to our team.
Hourly Rate and Retainer Strategy
Understanding the compensation structure is a pivotal step when considering hiring a Fractional CFO. Generally, Fractional CFOs are compensated on a fixed weekly or monthly price for a specific set of services.
Hourly Rate Explained
Several Fractional CFOs opt for an hourly rate for their services. This rate can oscillate between $100 to $500 per hour, depending on the CFO’s professional experience, industry specialization, and the unique financial needs of your organization. With this model, smaller organizations requiring only a few hours of consultancy a week can expect an estimated cost of $400 to $2,000 weekly.
Retainer Strategy
Alternatively, some Fractional CFOs might prefer a retainer strategy. Here, you pay a predetermined amount per month or quarter for a fixed number of hours of financial services. Typically, retainers can range from $2,000 to $15,000 per month for about 10 to 40 hours of service, allowing consistent access to financial expertise while permitting the CFO to effectively allocate their time across their client portfolio.
A typical Fractional CFO might earn anywhere between $100 and $500 per hour, depending on their level of experience and the complexity of the financial tasks they handle. On a retainer basis, a Fractional CFO could cost your organization between $2,000 and $15,000 per month, depending on similar factors. Bear in mind that these rates are approximate and may vary considerably depending on your location, industry, and the specific CFO’s expertise.
When to Hire a Fractional CFO
Rapid Growth and Expansion
It’s time to consider hiring a Fractional CFO when your organization begins experiencing rapid growth and expanding operations, resulting in more complex financial scenarios that your current team may not be equipped to handle effectively.
Preparation for Significant Financial Events
If your organization is preparing for a significant financial event such as mergers, acquisitions, or large-scale investments, a Fractional CFO’s expertise could be invaluable.
Strategic Financial Planning Challenges
If you’re consistently facing challenges in developing strategic financial plans, budgeting, forecasting, or interpreting financial reports, these are clear signals that your organization may benefit from a Fractional CFO’s services.
Filling a Gap in Financial Leadership
Hiring a Fractional CFO can be a strategic move if you’re trying to fill a gap in financial leadership without the long-term commitment or cost of a full-time executive.
Bringing Fresh Perspectives and Driving Innovation
A Fractional CFO can bring not only specialized financial skills but also a fresh perspective and new processes that can drive innovation and growth in your organization.
Find Fractional CFOs for Hire
To find the right Fractional CFO for your organization, there are a few avenues you can explore.
Fractional CFO Companies
Many specialized companies offer Fractional CFO services, providing a pool of experienced CFOs for you to choose from. These companies often match you with a CFO whose expertise aligns with your industry and needs. Velu is one of these companies that offers outsourced fractional CFO services.
Networking
Reach out to your professional network, attend industry events, and engage with financial communities to find suitable candidates. Personal recommendations can lead to excellent matches
Online Platforms
Consider using online platforms that connect businesses with Fractional CFOs looking for part-time opportunities. Such platforms make the hiring process more accessible and efficient.
Preparation for Hiring a Fractional CFO
Identify Your Needs
Identify the specific financial challenges you want the Fractional CFO to address. Is it cash flow management, strategic planning, or fundraising? Understanding your needs can help you select the right candidate.
Budget
Determine your budget for a Fractional CFO. It’s crucial to balance cost with the value they will bring to your organization.
Define the Role
Clearly define the role, responsibilities, and expectations for the Fractional CFO. This will help candidates understand whether they are a good fit for your organization.
Check Culture Fit
While a Fractional CFO won’t be a full-time member of your team, it’s still important that they fit well with your organization’s culture and values.
Onboarding
Onboarding a Fractional CFO requires a thorough introduction to your team, systems, and procedures, including exposure to your financial software and key financial documents, as well as setting up initial meetings with relevant team members.
Final Thoughts
Enlisting the expertise of a Fractional CFO can offer transformative benefits to small businesses and nonprofits, providing high-level financial guidance without the full-time commitment. The process of hiring a Fractional CFO involves identifying your organization’s specific needs, allocating a budget, and ensuring a culture fit. These professionals not only manage financial complexities but can become strategic partners, aiding in achieving financial stability and growth. They offer a flexible approach, making them an invaluable asset for businesses navigating the intricate financial landscape. Therefore, when evaluating your organization’s financial leadership needs, consider the significant advantages of a Fractional CFO – their unique combination of knowledge, strategy, and flexible commitment could be the key to your organization’s financial success.
Tyler Wilcox, CPA
Tyler’s extensive background in accounting, tax, and financial consulting set the foundation for Velu’s outsourced accounting solutions for nonprofits and small businesses. As a fractional CFO, he goes beyond routine duties, guiding organizations with strategic insights for sound financial decisions. Velu’s services address the unique challenges faced by nonprofits and small businesses, fostering sustainable growth. Tyler places great emphasis on meticulous attention to detail in financial record-keeping, implementing efficient systems to ensure transparency and streamline operations.
Learn more about Tyler and the Velu team on our About Us page. We’re excited to connect with you!
