meaning of fractional-cfo

A Chief Financial Officer (CFO) who works for a company on a part-time or contract basis, rather than as a full-time employee. They provide high-level financial strategy, oversight, and guidance without the full-time cost associated with a traditional in-house CFO.

Many startups opt for a fractional-CFO to manage their finances efficiently without the overhead of a full-time executive.

Engaging a fractional-CFO allowed the small business to improve its financial reporting and prepare for its next funding round.

Synonyms: part-time CFO, contract CFO, interim CFO, outsourced CFO

Etymology: A compound term formed from 'fractional' (meaning a part or portion, derived from Latin 'fractio') and 'CFO' (Chief Financial Officer). It emerged in the early 21st century as businesses sought flexible, high-level financial expertise, particularly in the startup and SME sectors.

Cultural Notes: The concept of a fractional-CFO has become increasingly popular in modern business, particularly among small to medium-sized enterprises (SMEs) and startups. It reflects a growing trend towards flexible work arrangements and outsourcing specialized functions to achieve cost efficiency and access top-tier talent without the commitment of a full-time executive salary and benefits. This model allows businesses to gain strategic financial guidance, improve reporting, manage cash flow, and prepare for funding rounds or exits, adapting to the dynamic needs of contemporary markets. It's often seen as a strategic advantage for scaling businesses that require high-level financial acumen but are not yet ready for a permanent, in-house CFO.

Common Phrases: hire a fractional-CFO, engage a fractional-CFO service, fractional-CFO model

Word Frequency: uncommon

Category: business

Language: Filipino

Pronunciation: /ˈfrækʃənəl siː ɛf oʊ/