How to Prepare Your Business for Fractional Finance Help

October 4, 2022

As a growing business, it’s crucial to ensure you have a pulse on your financials. In some cases, this may mean hiring additional help to ensure you manage and report your finances accurately. One way to do this without committing to a full-time financial team member is to hire fractionally.  Hiring fractionally provides organizations with access to the expert resources they require at a fraction of the cost.  

Here are a few things to consider before you hire fractional finance help for your business:

Know what you need: 

It’s imperative that before you hire fractional finance help you understand what level of support you require. First, consider where you need additional help immediately, and then, as your business evolves, you can grow your team accordingly.  To understand your needs, you should have a thorough understanding of the main financial positions: 

  • Bookkeeper: This is generally one of the first financial hires a company will make. A bookkeeper will be responsible for daily recording and assessing basic accounting information.
  • Accountant: As a business grows, recordkeeping will become more challenging; an accountant will become a key member of your management team and can help to communicate with bankers and lenders. They’ll also ensure compliance with local tax regulations.  They will deal with handling money in and money out, payroll, preparing financial reports and maintaining financial controls.
  • Controller:  A controller will oversee a company's financial health by taking ownership of the financial reporting process. They’ll work alongside the CFO and sometimes the financial director to provide financial leadership. 
  • CFO:  A CFO leads companies through growth cycles and business downturns.  They will oversee the financial operations of a company and will work to identify the best investment opportunities, develop relationships with key partners, and minimize finance costs.

Do your research

Not all providers of fractional finance help are created equal. Take the time to research and find a provider that suits your specific needs. Read reviews and compare different providers before making a final decision. If you have a current team in place that you trust, review the candidates with them and encourage their feedback.  When dealing with any type of fractional help, you must find a company/partner that you can both trust and has experience in providing the service you require.

Financial documents 

Compile and organize your current financial landscape for your upcoming financial partner. This includes putting together a comprehensive and accurate picture of your business's finances, as well as ensuring that all your current financial procedures are up to date. You should also have copies of your most recent accountant-prepared financial statements and visibility to your bank accounts, loan agreements, and other contractual agreements. This will allow your new partner to come into the business with a clear and detailed view of where your organization stands. 

Set clear goals 

Sit down with your team and identify the goals you want to achieve by working with a finance partner.  

Consider the below questions:  

  • How will you determine success in this new role?
  • What support do you/your team need to provide your new partner? 
  • What are the top priorities in the next 3-6 months?
  • Where are you hoping to grow your business in 1-3 years? 
  • How much time will be required from your financial partner to achieve your goals?
  • Who will oversee their progress and deliverables?

By taking the additional time to prepare both your team and your organization internally for a fractional finance partner, you’ll ensure that you setting your company up for success and providing a stable ground for your new partnership to be built upon.

If you’re ready to take the next step in your business, our expert financial team at The Finance Group comprises seasoned team members with years of experience integrating into organizations and helping them achieve their financial goals.

Alyssa Huizenga
Director, Business Development
[email protected]

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