FRACTIONAL CFO

A fractional CFO—sometimes referred to as an outsourced or part-time CFO—is a seasoned financial executive who provides high-level strategic financial leadership to organizations on a part-time, project-based, or interim basis. Unlike a full-time, in-house Chief Financial Officer, a fractional CFO offers flexibility: they lend their expertise precisely when a company needs it, without the expense or commitment of a permanent hire.

Fractional CFOs bridge the gap between companies’ current financial capabilities and the expertise required to navigate complex growth, investment, or restructuring challenges. Through their scalable engagement models, organizations gain access to a wealth of financial acumen—from budgeting and forecasting to fundraising and risk management—tailored to their unique stage and ambitions.

We provide CFO services from our base in Sioux City, and beyond!

Core Responsibilities of a Fractional CFO

Strategic Financial Planning & Analysis (FP&A)

Budgeting & Forecasting: Establish and maintain accurate, rolling forecasts that reflect market dynamics and organizational goals.

Performance Metrics: Define, track, and analyze key performance indicators (KPIs) to gauge financial health and operational efficiency.

Scenario Modeling: Build financial models that simulate “what-if” scenarios, enabling leaders to make informed, data-driven decisions.

Cash Flow Optimization

Working Capital Management: Streamline receivables, payables, and inventory to improve liquidity.

Cash Forecasting: Develop detailed cash projection tools to anticipate funding needs and prevent shortfalls.

Cost Control: Identify cost drivers and implement expense-reduction strategies without compromising growth initiatives.

Fundraising & Capital Strategy

Investor Readiness: Prepare compelling financial narratives, pitch decks, and diligence materials for equity or debt financing.

Deal Structuring: Advise on term sheets, valuation, and capital structure to align investor interests with long-term value creation.

Exit Planning: Chart pathways for successful exits—whether through M&A, IPOs, or strategic partnerships—ensuring shareholders maximize returns.

Risk Management & Compliance

Internal Controls: Design and implement robust control frameworks to safeguard assets and ensure accurate reporting.

Regulatory Compliance: Navigate industry-specific regulations (e.g., SOX, GDPR, IFRS/GAAP) to avoid penalties and reputational damage.

Insurance & Hedging: Assess exposure to financial, operational, and market risks; recommend insurance policies or hedging instruments.

Operational Finance & Technology

Systems Assessment: Evaluate and optimize accounting and ERP systems to support scalable processes.

Automation & Reporting: Integrate automation tools (e.g., invoice processing, BI dashboards) to accelerate reporting cycles and enhance data visibility.

Cross-Functional Collaboration: Partner with operations, sales, and marketing teams to align financial strategy with business execution.

How a Fractional CFO Differs from a Traditional CFO

Who Benefits Most from a Fractional CFO?

• Early-Stage Startups: Lacking in-house financial leadership but facing pivotal decisions around product-market fit, fundraising, and burn rate management.
• High-Growth Tech Companies: Experiencing rapid headcount and revenue growth, where scaling financial infrastructure is critical.
• Mature SMEs Preparing for M&A: Seeking to optimize financial statements, processes, and valuations ahead of a sale or merger.
• Family-Owned Enterprises: Transitioning leadership to the next generation or professionalizing their finance function.
• Non-Profits & Associations: Needing to balance mission-driven budgets with donor reporting and grant compliance.

1. Cost Efficiency & Scalability
   Engaging a fractional CFO eliminates overhead costs associated with a full-time executive—such as benefits, equity grants, and relocation. Companies pay only for the hours or projects they need, making it an attractive solution for startups, scale-ups, or small and medium-sized enterprises (SMEs) with constrained budgets.
2. Access to Senior Expertise
   Fractional CFOs typically bring decades of hands-on experience, having served in multiple industries and growth stages. Their panoramic view of best practices accelerates your learning curve and infuses your organization with strategic insights that might otherwise be out of reach.
3. Accelerated Growth & Fundraising
   With a fractional CFO’s guidance, companies typically see improved cash flow management and more robust financial models—both critical to securing investment. By enhancing credibility with investors and lenders, organizations can raise capital more effectively and on favorable terms.
4. Enhanced Financial Discipline
   Objective, external leadership fosters a disciplined approach to budgeting, forecasting, and KPI tracking. This financial rigor creates accountability, drives operational efficiency, and supports data-driven decision-making across the organization.
5. Risk Mitigation & Compliance Assurance
   Fractional CFOs fortify your control environment, reducing exposure to fraud and error. Their expertise in regulatory compliance ensures that you remain audit-ready and in good standing with tax authorities and industry regulators.
6. Technology and Process Improvements
   Whether you’re still using spreadsheets or have an outdated ERP system, a fractional CFO can recommend and implement fintech solutions—such as cloud accounting platforms, AI-powered forecasting tools, and interactive dashboards—that modernize your finance function.
7. Objective, Unbiased Perspective
   External CFOs bring impartiality to board discussions and C-suite deliberations. With no internal politics at play, they can challenge assumptions, surface hidden risks, and propose transformative strategies that drive value.

Twenty years ago, Timm reached out to business friends, bankers and CPAs and asked them what struggling companies had in common. The consistent answer was poor financial processes and records. They were too small to afford a full-time controller or CFO but had the most to gain from an experienced team of financial professionals.

It was then he created the company that became CFO Next, Inc. The market has called these services ‘interim CFO services,’ ‘part time CFO services’, and ‘fractional CFO services.’ Timm, however, has evolved this service concept into a ‘swat team’ solution where multiple skill sets and levels of experience will best help a company’s unique circumstances.

A company might need solutions that one person’s experience can solve. However, we find there are many situations where diverse problems require a team approach. That is where we excel and are different than other providers. Our learning curve is short and your return on investment is greater! Since founding the company, his team has helped over 70 organizations in various industries (profit and not for profit)!

Prior to coming into business himself, Timm worked for 20 years in the private and not-for-profit sectors in accounting and senior management roles. He is a graduate of Briar Cliff University and is originally from Moville, Iowa.

How CFO Next’s Fractional CFO Services Work

Initial Assessment & Onboarding
We start with a comprehensive financial health check: reviewing your current systems, financial statements, strategic plans, and pain points. This diagnostic phase uncovers opportunities for immediate wins and long-term improvements.

Customized Engagement Plan
Based on your priorities—be it fundraising, process automation, or strategic planning—we craft a tailored engagement roadmap. You choose the level of involvement: from a few hours per week to an intensive project-based sprint.

Ongoing Partnership
Our fractional CFO becomes a trusted advisor to your executive team and board, attending key meetings, delivering monthly board decks, and providing ad-hoc financial counsel as challenges arise.

Knowledge Transfer & Team Enablement
We don’t just do the work for you—we empower your existing finance team. Through training sessions and process documentation, your staff gain the skills and systems needed to maintain momentum long after our engagement concludes.

Exit Strategy & Continuity Planning
As your company evolves—whether raising Series A, preparing for a strategic sale, or bringing on a full-time CFO—we ensure a smooth transition. We help you recruit and onboard permanent financial leadership, delivering comprehensive handover packages and ongoing support as needed.

Real-World Impact: Client Success Stories

Tech Startup: Achieved a 30% reduction in cash burn and closed a $5 million seed round within six months of fractional CFO engagement.

Manufacturing SME: Streamlined costing and inventory processes, resulting in a 15% improvement in gross margin.

Professional Services Firm: Implemented an automated reporting suite that cut monthly close time by 50% and empowered partners with real-time dashboards.

Choosing the Right Fractional CFO

When evaluating fractional CFO partners, consider:

Relevant Industry Experience: Look for professionals who understand your sector’s unique financial drivers.

Track Record of Results: Request case studies or references that demonstrate measurable ROI.

Compatibility with Your Culture: A fractional CFO must integrate seamlessly with your leadership team, communicating effectively and earning trust quickly.

Service Flexibility: Ensure the engagement model aligns with your budget and timeline—whether through hourly retainer, milestone-based fees, or project rates.

Elevate Your Financial Leadership with CFO Next

At CFO Next, we specialize in delivering fractional CFO services that propel organizations toward their strategic objectives. Our roster of veteran CFOs brings deep operational know-how, financial rigor, and a results-driven mindset to every engagement. Whether you’re laying the groundwork for rapid scale, optimizing current performance, or preparing for a critical liquidity event, we offer the expertise—and the flexibility—you need to succeed.

Ready to harness the power of strategic financial leadership?
Contact CFO Next today to schedule a complimentary financial health assessment and discover how a fractional CFO can accelerate your journey to sustainable growth.

Get your free business assessment