As your small business has grown more successful, its financial picture has probably become increasingly complex. But bringing a skilled, experienced CFO onboard in a full-time capacity may prove a steeper challenge for your payroll and recruiting resources than you would prefer. The good news is that you don’t have to choose between having a CFO you can’t really afford and having no CFO at all. That’s because Fractional CFO services can supply you with all the executive-level financial wizardry you need, at least for this stage of your company’s evolution.

We have done several posts about working with The Pony Group as a Fractional CMO. Here are some of the reasons a Fractional CFO service might prove the right fit for your business’s needs.

A Cost-Effective Alternative

Attracting and securing a genuinely capable Chief Financial Officer on a permanent basis is no mean feat for a small and/or young enterprise. You must be prepared to offer a C-level salary (which currently averages around $250,000 a year), a C-level benefits package — obligations which can take a sizable bite out of your overall budget. You may also need to purchase key man insurance to help the business cope in case this major part of your team suddenly dies. On the other hand, if you need a CFO but are trying to get by without one, your own team is probably scrambling to handle the important functions of this position instead of doing their own jobs, destroying your productivity. An outsourced CFO service can restore that productivity without also saddling you with long-term financial burdens.

A Scalable Solution

Even the most promising and dynamic small business is still a small business. There may be times, however, when you need extra financial hands on deck for a particular project, a set period of time, or just occasionally. Keeping a full-time CFO on your payroll would be overkill in these situations. By engaging an outsourced CFO service, you can bring in that brilliant C-level guidance whenever you need it. You can ask for a part-time CFO, or you can contract a CFO on a per-project basis. Your outsourced CFO can also serve in an interim capacity if you’re simply between permanent officers. This nimble approach to talent acquisition helps your small business enjoy supreme scalability, growing or shrinking its key team as needed.

Instant Expertise From A Fractional CFO

Recruiting a full-time CFO the right way takes time. If you want to make sure you have the right person for the job, you have to mount a campaign to seek that person out and woo him into your enterprise. Depending on your resources, you may have to settle for someone with less experience or a more limited skill set than your business ideally needs. Meanwhile, this lengthy process can drain your team’s attention and focus. With an outsourced CFO service, you have excellence on tap. You can obtain the exact degree of expertise you need instantly, because the service already has that person or can find him on a moment’s notice. This can make all the difference when you find your company needs to deepen its financial talent quickly but without compromise.

Outsourced CFO services may make less sense for established large businesses who put a priority on steady, consistent service from an individual who will remain loyal to the company for many years (although even these titans could find their next interim CFO through outsourcing). But if you’re a small business undergoing numerous changes, you may find an outsourced CFO service the smartest way to climb the ladder of financial success. Additionally, if you are facing marketing and strategic growth challenges, an outsourced Chief Marketing Officer or Fractional CMO may also make sense for your business.