Five Reasons You Need a Fractional CFO

Businesses—especially rapidly expanding SaaS firms—rarely stay in the same place for long. The financial services you managed to take care of yourself eventually become the work of an outsourced accountant, a small finance team, or even a controller.

But what’s the next step, the one you take after a huge bump in annual recurring revenue? Or the move you make when you know Series B funding is on the horizon, but the financials in your pitch deck won’t be robust enough for investors? While CFOs will provide the professional financial services you need at this high-growth stage, many businesses aren’t ready for a permanent, executive-level position or simply don’t have the time to staff one.

For B2B SaaS businesses going through major growth, fractional CFOs can offer an ideal solution:
• The accounting, payroll, and insurance management services you already rely on your accounting team for
• Plus, the high-level financial analysis and forecasting you need actually to understand where your business is headed

Here are some of the signs your business might be ready for an outsourced CFO:

Your finance team is overwhelmed.

If you’re noticing signs of strain in your accounting team, you just experienced a significant funding event, or your annual recurring revenue is beginning to top $500,000, your business is probably ready for professional financial help. Your team might also struggle to keep up in regulations-heavy industries, scrambling to stay in compliance and allowing forecasting to fall by the wayside.

A fractional CFO service can grow as your business grows. By providing you with a more sophisticated view of your SaaS metrics, you’ll be better positioned to know where to infuse cash, how to prepare for a funding round, or how to adjust your strategy based on key performance indicators like customer acquisition cost.

You need a CFO, and you need one now.

So your finance team is overburdened, and you need oversight, processes, and strategic analysis to thrive at the next level. But creating and filling a new position on your team—especially one with as much responsibility as a CFO—can be a months-long process.

An outsourced CFO can hit the ground running much faster. You’ll gain a team centered on GAAP compliance, with CFO experience and a focus on B2B SaaS firms like yours. Best of all, when it comes time to level up again, your team grows with you.

You’re ready to improve your process.

Businesses can’t stay in the sprint phase indefinitely. If you feel like you’re always scrambling, constantly adjusting your strategy with little guidance to back up your intuition, an outsourced CFO can help.

A CFO develops your business’s financial process, working with the strategy team to better understand your firm’s risks and opportunities or creating a solid footing for your corporate governance and compliance with well-planned policies.

It would help if you had someone to tell your financial story.

If you’re looking to maximize your valuation, create a financial deck that investors will respond to, or provide materials that your board and shareholders can act on, you need someone who can tell your firm’s financial story. A fractional CFO understands the metrics investors and boards are looking for, helping your business succeed and stand out.

We’ll maintain the financials. You build your business.

Is your B2B SaaS company ready for the next step? FinStrat Management offers financial management services and fractional CFO services designed to improve visibility into your financial operations for just a fraction of what in-house operations cost. Let’s get started with a free consultation today.