“Fractional CFO” is one of the fastest-growing terms in small business finance. The idea is appealing: senior financial leadership, a few days a month, without a full-time salary. Owners in Boston, Quincy, Hingham, and across the South Shore are asking whether they need one.
Sometimes the answer is yes. Often, the real need is something more basic, and less expensive, that has to be in place first.
What a fractional CFO does
A chief financial officer focuses on strategy: financial planning, budgeting, pricing, raising capital, structuring deals, and guiding major decisions. A fractional CFO does that work part-time, for several companies.
What a CFO generally does not do is keep the books. A CFO relies on the books being accurate. Their analysis is only as good as the numbers underneath it.
What owners are usually looking for
When owners describe why they are searching for a fractional CFO, the reasons tend to sound like this:
- “I don’t understand my numbers.”
- “I’m profitable but I never have cash.”
- “I want someone to talk to before big decisions.”
- “I need to know if I can afford to hire, buy equipment, or expand.”
Every one of those starts with accurate monthly books and someone who will explain them.
The foundation comes first
Before strategy, you need:
- Books that are current and reconciled. Every account, every month.
- Reports you receive on a schedule: a profit and loss, a balance sheet, and a cash analysis.
- Someone who walks you through them. Not just a PDF in your inbox, but a conversation.
- A view of the weeks ahead. A short-term cash forecast for payroll, bills, and upcoming decisions.
For many owner-run businesses, those four things answer most of the questions that sent them looking for a CFO.
Where Larsen Bookkeeping fits
Larsen Bookkeeping keeps the books for owner-run businesses, and our monthly work includes the review conversation. As Liliane Larsen describes it, some clients want the bare bones to get things going, and others want a little advisory: somebody they can talk to and run numbers through. We can do both, within the scope you choose.
That includes: - Monthly bookkeeping in QuickBooks Online, with every account reconciled. - Monthly reports on an agreed schedule, and a review meeting. - Short-term cash forecasting, when it is part of the engagement. - Coordination with your CPA at year-end and during the year.
When you may need a fractional CFO too
A fractional CFO may make sense when:
- You are raising outside capital or negotiating a significant acquisition.
- You need detailed multi-year financial models for lenders or investors.
- The business is large enough that strategic finance is a part-time job in itself.
Even then, the CFO will need clean, current books. That part does not go away; it becomes more important.
Questions to ask yourself
0 of 4 are a yes
If any answer is no, start there.
Frequently asked questions
No. A bookkeeper keeps the financial record accurate and current. A CFO uses that record for strategy. Many small businesses need the first before the second.
Yes. A CFO benefits from a bookkeeper who keeps the books right every month, just as your CPA does.
When forecasting is part of your engagement, we can show expected cash over the coming weeks against the purchase, so you can make the decision with real numbers.
Start with a conversation
If you are in Boston, Quincy, Hingham, Hanover, or Norwell and wondering what kind of financial help you actually need, request a free consultation. Prefer the phone? Call 781-924-1489.