Fractional CFO Services
Every company could benefit from the input of a seasoned finance expert, but most companies are not large enough to support a full-time Chief Financial Officer (CFO) position. In Connecticut, the salary for an experienced CFO is about $400,000 - $600,000 per year. TriPoint Advisors offers a solution: Fractional CFO Services. A Fractional CFO will provide your company with all of the expertise of a traditional CFO, but on a part-time contract that is practical for small to midsized companies.
Contact us to schedule a free consultation and
see how TriPoint Advisors can help your company!
What is a Fractional CFO?
A Chief Financial Officer is a seasoned finance professional who is accountable for ensuring the finances of a company are in good standing by coordinating and performing a wide variety of financial tasks. When you hire a Fractional CFO, they will perform the same functions as a full-time CFO, but on a smaller scale and on a part-time basis. A Fractional CFO will spend on average one day per week on a client.
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Common services provided by a Fractional CFO include:
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1. Financial Reporting and Analysis
2. Monthly Earnings Presentations
3. Financial Forecasting
4. Audit Management
5. Annual Budgeting
6. Strategic Planning and Goal Setting
7. Cashflow and Liquidity Management
8. FP&A and Accounting Team Support
9. Contract Negotiations
10. Financial Modeling/ What-If Analysis
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The Fractional CFO Onboarding Process
Discover Call
Given the close working relationship that is formed with a Fractional CFO engagement, TriPoint Advisors will start the process by scheduling a free consultation call to discuss the company's goals and determine how we can provide support. If we collectively feel that this could work for both sides, we will go to the next step. Think of this as a first interview to ensure we are both aligned on general expectations.
Detailed Discussion of Services and Pricing
Based on the goals discussed in the consultation call, TriPoint Advisors will schedule a follow-up video presentation tailored to the needs of your company. We will go into a more detailed explanation of the Fractional CFO model, how it could meet your business needs, and how pricing is determined. This will be an opportunity to share any additional information and questions you may have to ensure a contract can be tailored to fit your business.
Contracting
As a firm that prioritizes client satisfaction, TriPoint Advisors eliminates the headaches that come with large, complex contract negotiations. We provide a simple statement of work and contract to outline the pricing, services, and terms of the engagement. TriPoint Fractional CFO contracts are month-to-month. If at any time our services are no longer needed, either party can cancel the contract with 30 days notice.
Onboarding
In the Onboarding phase, TriPoint Advisors will visit your office to meet the team, get more familiar with the company, and review the financial reporting system and procedures currently in place. The CFO will then put together 30, 60, and 90-day action plans. Over the next 3 months, the Fractional CFO will work with both staff and management to improve financial processes and create an effective monthly reporting package that can serve the company long-term.
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When do I know if I need a Fractional CFO?In our experiences, companies generating over $3M in revenue is complex enough to need significant financial oversight. Oftentimes, the owner/CEO are not trained finance professionals. They have done a excellent job scaling a company to be generating significant revenues, but there comes a point where the business is running ahead of the financials. The company is not in touch with profitability and where it should be investing. When do I hire more people? Can I afford more people? What happens to the profitability if I change the price of my product? When the CEO can no longer easily answer these questions, its time to call in reinforcements and TriPoint Advisors is here to help!
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What does a Fractional CFO cost?TriPoint Advisors can charge either hourly or monthly. Clients typically prefer a fixed, monthly charge that is easy to plan for rather than paying per hour. A Fractional CFO plans to spend ~1 day per week on each client.
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Do you create financial reports?Yes! Your Fractional CFO will create a financial reporting package that will be delivered to the client and reviewed in detail on a 2 hour monthly call.
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Does TriPoint Advisors do bookkeeping?While possible, we believe that it's in the clients best interest to have someone in the company manage the day-to-day bookkeeping.
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What accounting software do you use?TriPoint Advisors has experience with most general ledger/accounting systems including small company systems like QuickBooks all the way up to complex ledger systems like Oracle.