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Could Skipping a CFO Cost You Millions? A Thought Leader’s Take on Fractional CFO Services

The Real Cost of Skipping a CFO

June 26, 2025
Brett Sigworth

I’m sitting at dinner with my friends Bill, the CEO of a mid-sized manufacturer, and Susan, a CFO at a Fortune 1000 company.  Bill’s company is pushing $100 million in annual revenue, producing over a hundred SKUs, and carrying about 120 employees. Yet they’ve never had a true CFO. Bill prided himself on “running lean,” relying on a CPA and in-house controller to handle the numbers.

Susan couldn’t help but ask some tough questions:

Bill shrugged and confessed he’d never done a deep-dive SKU analysis nor considered currency hedging for his overseas suppliers. “We’ve been doing this for decades,” he told Susan. “We know our business.”

The conversation that night changed his perspective. Here’s how—and why it might change yours, too.

The Real Cost of Skipping a CFO

1. Missed Profit Opportunities

Without a CFO,Bill’s team was lumping labor, materials, and overhead under broad cost-plus pricing. Result: They were losing money on at least a dozen SKUs, while under pricing several top sellers. With SKU-level profitability analysis, Bill could phase out products that barely broke even and double down on those with higher margins.

2. Supply Chain Volatility

A CFO would proactively hedge against rising material costs and currency fluctuations, ensuring more predictable pricing. Susan pointed out that renegotiating bulk contracts could instantly improve cash flow—a step many companies overlook until they have a dedicated CFO to handle it.

3. Capital Surprises

ABC Manufacturing frequently scrambled for financing when big machinery purchases came due. ACFO’s rolling 12–24-month forecast would have prepared them to time those investments—and maybe secure lower interest rates, too.

4. Stalled Growth & Limited Exit Potential

Bill wanted to sell in a few years, hoping for a high multiple on EBITDA. But as Susan explained, private equity wants GAAP-compliant, accrual-based financials.Without them, ABC’s valuation could drop significantly—or scare off buyers altogether.

The Fractional CFO Solution

At the end of dinner, Bill looked resigned. “So, you’re saying I need to hire a full-time CFO?” he asked. Susan shook her head. “Not necessarily.”

She introduced Bill to the concept of a fractional CFO—a strategic partner who steps in part-time to handle:

Why Fractional CFOs Are Booming

In fact, industry estimates show fractional CFO services are surging in popularity with mid-market companies. Here’s why:

The Takeaway

Bill initially believed his lean operation was saving money by not hiring a CFO. But by the time dessert arrived, he realized skipping strategic financial leadership could cost him far more—in lost margins, financing headaches, and a weaker exit multiple.

If you’re in Bill’s position, ask yourself:

If you’re nodding along, a fractional CFO might be your game-changer—an expert who can implement advanced financial systems, guide you through strategic pivots, and leave behind an infrastructure that positions your company for long-term success and maximum valuation.

Final Word

There’s noone-size-fits-all solution to corporate finance leadership. Some firms trulyneed a full-time CFO in-house. Others—like ABC Manufacturing—find thatfractional support offers the perfect blend of expertise and affordability.

The bottom line:Don’t let old assumptions about “lean operations” keep you from tapping into the strategic power of a CFO. Even if it’s just a few hours a month, the right financial leadership can pay for itself many times over—and ensure you’re never leaving money (or opportunity) on the table.