How a Fractional CFO Can Help You Cut Costs

When your budget is running a bit tight or you want to find ways to trim costs so you can pursue a new opportunity, a fractional CFO could be the answer. A fractional CFO can help you save costs in many ways, including:

·       Rather than paying a salary, benefits and training expenses, you simply hire the CFO to do the tasks you need completed.

·       You have flexibility, allowing you to scale up to handle a merger, for instance, or finding an additional investor. Then you can scale back down once the need has passed.

·       A fractional CFO is going to come with a lot of clear cost-savings, but some of the key benefits are hidden. They may come with expertise from working across many different industries or have a network of contacts that are helpful to your company.

These are just the upfront cost savings you’ll experience when you work with a fractional CFO. Once they begin digging into your business, there are many areas where they will assess whether expenses can be reduced:

Operating Costs: A CFO will examine your processes, staffing and overhead to see where it may be possible to introduce new efficiencies or restructure for better cost management. Their experience working with companies of varying sizes across different industries may allow them to provide unique insight into your business.

Vendor Relationships: Your fractional CFO may be able to negotiate better terms with your vendors or introduce you to new contacts in your industry.

Optimized Inventory: A just-in-time strategy for inventory may be ideal for maximizing your cash flow and minimizing carrying costs. Bringing in a CFO allows you to analyze your inventory data without pulling your team from their regular tasks.

Technology: Introducing automation and better network management are just two ways that a CFO might equip you to reduce costs. Embracing digitalization and automation helps your business reduce errors and improve efficiency.

Cost-Control Strategies: Even if all of the above are optimized already, a CFO can help you develop a roadmap for cost control measures, establishing goals and objectives for your team to pursue. Simply putting a spotlight on expenses can help your employees be mindful of reducing costs. By driving cost-cutting consciousness across your business culture, your expenses may quickly be reduced. You might even consider some incentives for your team.

Ready to get started? The Power CFO provides fractional CFO services to businesses just like yours. Whether you are interested in pursuing cost reduction strategies or you need a little help cleaning up your financial statements, contact us at The Power CFO to learn more.