Understanding the Responsibilities of a Part-Time CFO
If you are bringing a fractional CFO into the folds of your business, you should have a solid grasp on the types of tasks and responsibilities he or she will provide. A fractional CFO’s role typically falls within the scope of their financial expertise—their job is to provide that financial strategy and leadership needed to guide the operations of your business both short-term and long-term.
So what won’t your fractional CFO do? Here are five things that won’t be on their to-do list:
- Daily Bookkeeping: Fractional CFOs are not responsible for the day-to-day recording of financial transactions, data entry, or routine bookkeeping tasks. These responsibilities are usually handled by bookkeepers or accounting staff.
- Micromanagement of Operations: Their role is primarily focused on financial management and strategy. They do not engage in the day-to-day micromanagement of operational aspects of the business, such as production, logistics, or employee supervision.
- IT Infrastructure: Fractional CFOs are not responsible for managing the company’s information technology (IT) infrastructure, including hardware, software, and cybersecurity. IT-related matters are typically handled by IT professionals.
- Legal Compliance: While they may provide financial data and analysis to support legal compliance efforts, fractional CFOs do not typically handle legal compliance matters directly. Legal compliance is usually overseen by the company’s legal team or specialists in the field.
- HR Management: Managing human resources functions, including hiring, firing, performance reviews, and employee relations, falls outside the scope of a fractional CFO’s role. These responsibilities are typically managed by HR professionals.
Other more obvious tasks that a fractional CFO does not typically perform include managing sales and marketing activities, handling customer support or service, managing facilities, or overseeing your production processes.
Your fractional CFO’s specific tasks and responsibilities will vary depending on your company’s unique needs and terms. The primary focus of your CFO is to provide financial leadership, strategy, and expertise to help your company make more informed financial decisions and reach your financial goals.