Running the business · 3 min read · Published
How much does a fractional CFO cost, and what should you get for it
By Chris Greco, Founder and President.
A fractional CFO for an owner-led company costs a fixed monthly fee set by how much of the finance function they take on, the number of entities, the state of the books, and how many decisions the next year holds. Anyone who quotes you before looking at your numbers is guessing.
Ask what the monthly rhythm includes. A close within 15 days, a forecast updated weekly, a scorecard, a standing review, and a person who takes the call from your banker are the minimum. A quarterly meeting and a PDF are not a CFO.
Ask one more question: who closes the books the forecast is built on? If the answer is "your bookkeeper," the advice is built on numbers nobody reviewed. See what drives the cost on the Engagements and fees page.
Where this applies
Chris Greco
Founder and President, CFO Anywhere. CFO for owner-led companies since 2002. Executive MBA, Gies College of Business, University of Illinois.
About ChrisMore from Chris
Running the business · 2 min read
Can we afford another hire? A five-minute way to answer
Take the loaded cost of the hire, salary plus about 25% for taxes, benefits and equipment, and put it on the 13-week forecast as a weekly line. If ending cash stays above your floor in every week, you can afford it now. If it dips, the forecast tells you which month you can.
Cash flow · 6 min read
How to build a 13-week cash flow forecast, with the template
A 13-week cash forecast is a weekly table with nine rows: beginning cash, collections, payroll, vendors, debt service, taxes and distributions, capital purchases, ending cash and line availability. The rows are easy. The discipline is reconciling it to actual cash every week.
Running the business · 3 min read
What we usually see when a founder hires their first controller
When a founder hires their first controller, they usually hire well and then ask the person to do CFO work they were not hired for: the forecast, the bank, the pricing decision. The controller does the close and improvises the rest.