by Rob Joseph, Director, BeaconCFO Plus
Fractional CFOs vs. HR: What Makes Us Different
In many companies, the HR function reports to the CFO (along with a number of other administrative departments, such as IT, administrative support, procurement, and contract management). This raises the question of whether a fractional CFO would be the appropriate person to take over HR. The answer is, it depends on how your company is structured.
The hiring of a CFO is a highly strategic decision. Whether you have a project-based need or an ongoing need for financial leadership, you need the right individual in the role. As you approach this hiring decision, you or your team may have concerns over whether the incoming virtual CFO will step on the toes of your existing financial team or HR leaders. While the CFO position will—and should—touch every aspect of your business, it is not a replacement for accounting or human resources.
The outsourced CFO is an experienced outside practitioner with an impartial viewpoint. He or she is someone who brings a unique and specific set of skills and experiences to the table to serve as a resource for your business. A fractional CFO can augment your HR function but , generally, he or she will not take that responsibility over.
These are just a few of the many ways fractional CFOs can bolster your existing team:
- They can identify risks. An experienced CFO is able to assess your current financials, identity gaps or areas of weakness, and determine threats from external factors.
- They help your team make more data-driven decisions. Financial leadership is essential in guiding the long-term strategy of your business.
- They help managers better read—and understand—your company’s financials. Our constant refrain is that business leaders need to know their numbers. This is among the greatest advantages of hiring a fractional CFO.
- They implement better processes and methodologies. The CFO has a unique vantage point to all areas of your business and the ability to enact changes that improve efficiency, productivity, and profitability.
When you hire a virtual CFO, you are giving your team a partner who can enhance and bolster their efforts as well as optimize current systems and technologies. The benefits are many: cost savings, improved cash flow, creation of a healthy bottom line, a sounding board for difficult financial decisions, and more time for your team to focus on important long-term goals.
If you’re ready to speak to one of our experienced virtual CFOs, please reach out to schedule a complimentary session. We look forward to learning more about your business and its current goals and challenges.