What is a fractional CFO?
Most of us know what a Chief Financial Officer does in a business organization: that’s the person who monitors the flow of revenue and expenses, assesses risks that affect the company’s financial health, and generally keeps the financial heart of the company beating.
Startups or very small businesses often do not have a CFO on board because they may not have the revenue to support a person in that role. But that kind of expertise can be critically important, especially if the fledgling business wants to soar, or the small business wants to grow and evolve.
You could think of hiring a portion of a CFO’s time the way you might decide to go in with others on a fraction of a vacation home: you are entitled to use that asset at an affordable cost because the whole cost is spread among several users.
“A fractional CFO can do many things for a young or small business,” says Amy Sullivan, who serves in this capacity for a range of companies. “My services include managing finances, helping the business owners devise and implement better financial strategies, developing strategies that streamline operations and save money, raise capital, and navigate an audit or a transaction – like the purchase of another entity.”
The benefit to a business of having a part-time CFO, in addition to its lower cost to the company, is that this specialist can be flexible, focusing on whatever that company needs immediately.
A fractional CFO can be helpful at other stages of a company’s life cycle as well, according to Sullivan.
“She or he can be especially relevant as a business owner begins to step back in preparation for retirement,” Sullivan says, noting that a part-time CFO can step in not only to take on some of the responsibilities the owner has been carrying, but to ensure that the company’s financial records, policies and procedures are in good shape for a prospective successor or buyer.
Or, if the company’s operations are running smoothly, a fractional CFO can free up a business owner who wants a little more freedom to become involved in the community.
“My clients draw on my extensive experience with a wide variety of businesses – and business models – to help them at critical times and in making critical decisions,” Sullivan says.
Just as she helps organizations on their pathways to success, Sullivan has long worked with organizations that assist children in foster care to prepare for a successful adulthood.
“Until recently, I was a board member and a mentor to teens with Angels’ Arms, a St. Louis-based nonprofit devoted to providing housing and support for children in the foster care system,” she says. “I subsequently rolled off the board to serve as a consultant for the organization.
Sullivan’s passion for working with young people in the foster care system bloomed, she says, when she served as Guardian ad Litem in New Hanover County a few years ago.
“In my time as a Guardian ad Litem, I learned the importance of advocating for children who have been put into terrible situations through no fault of their own. These children are entitled to a safe, loving and supportive environment and truly need someone fighting for them,” Sullivan says.
Sullivan’s determination to make a difference traveled with her when she moved to the Midwest.
“I started my own non-profit, Hunt for Brighter Skies, which provided employment assistance to children in the foster care system. I helped them write a resume and apply for jobs. I also coached them on interviewing skills and provided work-appropriate attire once they landed a job.
Sullivan is proud to be able to use many of the same skills she uses to improve businesses to help children in need grow, prosper and thrive.
Lumina Business Solutions has offices in Illinois and North Carolina with clients located throughout the United States.
