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Ask HN: What do you think about Fractional CFOs

6 points | 43h ago | Discuss on Hacker News | Back to Radar

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BobbyTables2 42h ago on HN
Why stop there instead of an entirely fractional executive leadership?
tiffanyh 42h ago on HN
“Fractional” seems to be the modern-day buzzword for a 1099 contractor.

(and your experience will all depend upon the contractor)

mtmosestn (author) 4h ago on HN
True, they are a 1099. But a fractional owns the work. A freelancer just owns the task.
propter_hoc 41h ago on HN
I think this post is bait, but hiring executive contractors is essentially a terrible idea for startups.

Your 'fractional cxo' will cost as much as a full time junior, work very few hours, not care about your equity, and be mostly unconcerned whether you succeed or fail.

Get an employee who's dedicated to your mission and wants to prove themselves, or learn to do the job yourself until you can justify the hire.

kryogen1c 41h ago on HN
> Get an employee who's dedicated to your mission

I dont know about startup culture or silicon Valley, but i do know a fractional cfo who is more motivated and dedicated than most full time associates.

I'm not convinced fractionalness is a bad thing; i would think it adds tight feedback loop for performance that executives sorely lack.

mtmosestn (author) 4h ago on HN
This post is bait to hear from people on what they think about fractional talent.

In my past two exits the fractional CFO and CTO saved my butt.

m463 39h ago on HN
serious question - what happens at the end of a quarter and you don't have them.

sort of like tahoe timeshares near heavenly for periods when there is no snow.

mtmosestn (author) 31h ago on HN
Most work under some kind of time agreement. Meaning they will give you hours each month and will not leave unless you want them to.
altairprime 35h ago on HN
I’d love to hear an explanation of what ‘fractional CFO’ means in this specific circumstance; please tell us more?

(Non-OP folks, I’m familiar in a general sense but I’d rather not assume the details, so this request is for OP alone to clarify their question with additional details.)

mtmosestn (author) 31h ago on HN
A Fractional CFO is a part time executive that is paid on a monthly basis. Between $5,000 and $10,000 in general. They use the accounting numbers to provide forward looking guidance on Cash flow, burn rate, etc. Furthermore, they help with funding, oversee accounting, and teach founders about the financial side of their business.

Eventually helping to bring on a full time CFO when it is needed.

altairprime 26h ago on HN
Most of that job description is just “retain a CPA” and they’re already fractional workers across lots of companies. One point is unclear, though: what does “help with funding” involve?
mtmosestn (author) 4h ago on HN
The CPA ensures compliance. The CFO looks forward. Giving founders the numbers and education on the numbers to make strategic decisions.

Help with funding means passing due diligence, many have relationships with PE and VC, and years of network building to speed up fundraisers.

mtmosestn (author) 32h ago on HN
There are some horror stories with Fractional CFOs. That was my intital fear. But, a Fractional CFO who own a number can give a boost to a sub $5 million company. It goes bookkeeper, tax accountant, Fractional CFO as far as when to hire.

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