The Rise of the Fractional CFO Firm - IV
Updated: Apr 28, 2022
Expectations of the Fractional CFO
PART 4 of 6
Future Fractional CFOs take a longer-term view. They talk about internal controls, security, organic growth, and roadmaps. What they don’t do is try to be the CEO. A Fractional CFO understands the scope of their role and focuses on the administrative function of the organization. Some current Contract CFOs want to be management consultants and forget the real reason they are there. It is exciting to talk about strategy and participate in the entrepreneurial spirit of the company. However, a good CFO will remember that this is secondary to their administrative role as the Chief Financial Officer.
The aspects of what a Fractional CFO should bring to the table, accounting knowledge, business law acumen, fiduciary responsibility, risk management, and a general compliance mindset, lend themselves to the education and training of a CPA. Yes, others can acquire this knowledge by doing the work, but when hiring a Fractional CFO, one should ensure these skills, requirements, and experiences are truly present. Anyone can call themselves a CFO, but it takes education, examination, and verified expertise to be a CPA. All the reasons above show why the CPA profession will grow into this new Fractional CFO space in the future, and future CPA firms will be dedicated to this space. Unfortunately, time is too valuable, and the stakes are too high to allow your Fractional CFO to learn on the job.