Running a small business means constantly weighing tradeoffs. Should you reinvest profits or hold onto cash? Is now the right time to hire? Can you afford to say yes to a new opportunity without putting stress on your finances? These are all questions a CFO, or Chief Financial Officer, helps business owners navigate.
CFOs come in to provide business owners with stronger financial guidance. But a full-time hire raises its own questions, like what do they actually do day to day? And is bringing on a new executive really necessary for a growing business?
For many small businesses, the answer is no. Let’s break down why.
What Is a CFO?
A CFO is responsible for the financial health of a business. They don’t just track numbers—they help business owners understand those numbers and use them to make smart decisions.
For small businesses, this role acts as a financial guide. They help answer questions like:
- Can I afford to hire more people?
- Is my business actually profitable?
- How should I plan for growth?
Key Responsibilities
They handle more than basic accounting, most critically, turning financial data in to useful insights. Key responsibilities include:
- Financial strategy: Helping set goals and plan for the future
- Cash flow management: Making sure the business can pay bills and payroll
- Reporting: Providing clear, accurate financial information
- Decision support: Helping owners make informed choices
- Risk management: Spotting issues early and reducing financial stress
What Does a CFO Do All Day?
A common misconception is that a CFO spends all day doing spreadsheets or entering data. In reality, most focus on planning, reviewing, and advising.
A typical day may include:
- Reviewing financial reports and explain what they mean
- Monitoring cash flow to avoid surprises
- Helping create budgets and forecasts
- Reviewing costs and pricing decisions
- Identifying financial risks and opportunities
- Supporting long-term planning and growth
It’s not just their job to look at what already happened, but to help plan what comes next.
Does a CFO Get Paid More Than a CEO?
This is a question many business owners ask.
In most companies, the answer is no. The CEO is usually the highest-paid role because they are responsible for the entire business. The CFO is often one of the next highest-paid executives, but still earns less than the CEO.
That said, CFOs are expensive hires. A full-time salary can be out of reach for many small businesses—especially those still growing.
Do Small Businesses Need a Full-Time CFO?
Not always. Many small businesses need CFO-level guidance but don’t need someone working full-time.
That’s where Fractional CFO services come in.
A Fractional CFO provides the same type of financial leadership but on a part-time or outsourced basis. This gives business owners access to expertise without the cost of a full-time salary.
Wondering if a Fractional CFO is right for your business? Click here to read our blog to learn more.
The Bay Business Group Solution
Bay Business Group’s outsourced accounting services that provide Fractional CFO services for small businesses that aren’t ready for a full-time hire.
Their team helps small business owners:
- Understand financial reports and key numbers
- Improve cash flow planning
- Build realistic budgets and forecasts
- Make confident decisions about hiring and growth
- Move from reactive to proactive financial management
Instead of guessing or feeling unsure, business owners gain clarity and control.
Find Your Support
If your business is growing and financial decisions feel more complex—but a full-time hire isn’t the right fit—Fractional CFO services may be the answer. Schedule a free, 30-minute consultation with one of our Certified Public Accountants and get CFO-level insight so you can focus on building a stronger, more confident business. Click here to schedule or email us directly:
Michael Young, CPA | [email protected]
Matthew Young, CPA | [email protected]