When Are Fractional CFO Services Right for a SaaS Business?

The list above should give you a good understanding of what the roles and responsibilities are at large. The skill sets required for a controller vs. CFO are mutually supportive but distinct. Ideally, if both roles are present in a company, they’ll work together https://quickbooks-payroll.org/ to complement and support one another as they move the company forward. At some point, you’ll start to find keeping track of your finances difficult, and when this happens, it’s an indication that you need to move up the hierarchy of financial needs.

  • For example, You may be spending time reviewing and correcting your financial reports every month, or your books are not closing timely.
  • A fully-integrated, outsourced solution will fill in every gap, bringing a new level of depth to your F&A function.
  • Often the investment for a virtual CFO ends up being a fraction of the cost of a full time hire.
  • Often holding a CPA, controllers are accounting experts whose skill set and knowledge base revolve primarily around GAAP, tax laws, and financial reporting.
  • Outsourcing a complete finance and accounting department can be an effective way for companies to reduce costs while ensuring sound financial management practices.

A CFO can be an invaluable asset to any organization—having the right person in this position can help guide the business toward increased profitability and long-term growth. By offering their experience and expertise in areas such as budgeting, forecasting, cash flow management, debt financing, mergers & acquisitions activity, and more, a CFO can become an integral part of any executive team. When discussing the most important responsibility of a controller, it is imperative to consider the role they play in an organization. Controllers are primarily responsible for overseeing financial operations and providing timely and accurate financial information.

What Is a CFO?

A fractional CFO will be more cost-effective, freeing up funds to fuel growth in other parts of your business. Consider investing in a high-caliber head of sales or bringing in more sales reps to drive ARR. In this article, we’ll answer these questions and more, so you can get the right-fit finance leadership your SaaS firm needs and tackle every growth stage with confidence.

By using historic information and combining it with information about the future, you can produce an accurate forecast for the next time period, and identify the probable outcomes of your current path and future choices. In this blog article, CFO vs Finance Controller: Whom Does your SaaS Business Need? we walk you through the four levels that make up the hierarchy of financial needs, and discuss the differences between a CFO vs controller vs accountant. Read on to learn what sort of role you need to hire, based on your specific needs.

Stakeholder Management

Accelerating growth is always top of mind, but it’s essential to nail down each growth stage before moving on. Your CFO will act as a gatekeeper, ensuring all departments and resources are aligned on the right priorities at each stage. One option is to hire a full-time CFO—but an increasingly preferred option is to use a fractional SaaS CFO service.

  • The best source of information for all things subscriptions, growth, and revenue success.
  • By outsourcing our finance and accounting department, you get the benefits of both professionals for less than the cost of a single full-time employee.
  • Want to move to the next level in the hierarchy of financial needs, so that you can grow your company more quickly?
  • Gone are the days when finance leaders were expected to simply deliver quarterly numbers and follow GAAP/IFRS.

Outsourcing is an attractive option for many small businesses due to its cost-saving potential. These cost savings are especially beneficial during times of economic downturns or periods of high growth when capital is needed elsewhere in the business. Additionally, outsourced services can often be less expensive than those provided by an internal team since they require fewer resources and personnel costs. Furthermore, outsourcing allows small businesses to take advantage of best practices in finance and accounting without incurring significant additional costs.

Accrual accounting and revenue recognition

Work with a London-based accountant for tax, accounting, payroll, & EIS/ SEIS needs. One of the qualifications we mentioned above which is common to CFOs and controllers is the ability to show visually appealing and useful reports. But we we do tend to see CFOs earlier and more often in some industries, such as tech companies with a lot of investor money at stake and where rapid growth is expected.