What an external CFO does: missions and deliverables
Understand the role of the external CFO: cash forecasts, reporting, budget, accounting coordination and responsibilities to be specified in the mission.
Founding Partner and CFO, Iter Advisors
Remember in 30 seconds
The external CFO helps management link cash, results and decisions. Its mission is described by deliverables, a cadence and responsibilities, rather than by a title or a turnover threshold.
External CFO: what role in the company?
The external CFO is a financial director involved in a service framework. He can work part-time or on a defined project. The notion of Fractional CFO describes this same use of external financial management: the mission specifies what the person doing, their availability and the way in which they work with the teams.
Its role is to make financial data usable for decision-making. Maintained accounts, a budget and a bank balance answer different questions. The CFO brings them together to explain the results, anticipate cash flow needs and prepare the manager's decisions. The administrative scope, investor relations and management are not automatically included.
Before selecting a profile, formulate the problem to be solved: a forecast that is difficult to maintain, late reporting, poorly explained margins or an incomplete financing file. This allows you to request an observable deliverable and verify relevant skills.
Concrete missions and expected deliverables
Plan receipts and disbursements
One cash flow forecast links the starting balances to customer, supplier, tax and social due dates, then to activity hypotheses. A rolling forecast can cover thirteen weeks if this horizon corresponds to the decisions to be made. The deliverable must identify the assumptions, the cash flow low point and the actions to be examined.
The useful check occurs during the update: which payments have changed dates, which amounts were incomplete and who corrects the source? Reliability comes from this review with operational managers, not just from the software or the number of columns.
Explain results and variances
Reporting reconciles the closed accounts, the budget and activity indicators. It can present a management income statement, margins by activity and a cash reading. Each indicator must have a definition, a source and a cut-off date. Figures from different periods can give a misleading picture.
The management control adds an explanation of the discrepancies: volume, price, cost, recruitment or billing offset. The deliverable results in decisions attributed to managers, rather than on a dashboard with no follow-up.
Build the budget and scenarios
The CFO links business assumptions, costs and investments. He prepares scenarios to discuss the consequences of recruitment, customer delays or market opening. Assumptions must be visible and modifiable without breaking the calculations. The budget is not a guarantee of future results.
Coordinate accounting work
The mission can organize a closing schedule, the collection of documents and the reconciliations necessary for reporting. The accounting coordination must identify who keeps the accounts, who produces the declarations and who validates the work. The role of the CFO does not replace the missions entrusted to the accountant or competent specialists.
Prepare a financing transaction
For a debt raise or request, the scope may include a financial model, a data file and answers to financial questions. Thesupport for fundraising must distinguish financial preparation, legal advice and decisions of financiers. A mission does not guarantee funding or valuation.
| Question from the manager | Deliverable to be agreed | Control expected |
|---|---|---|
| When does cash become tight? | Rolling forecast and scenarios | Reconciled balances and dated assumptions |
| Why does the margin change? | Income statement and variance analysis | Consistent sources and allocation rules |
| What can we finance? | Budget and investment scenarios | Effect on cash, costs and schedule |
| Is the reporting ready? | Closing schedule and review file | Persons responsible and validations identified |
Adapt the mission to the context of the company
In a startup, the need may relate to cash, recurring revenue and investor reporting. A service SME can prioritize margins per contract and recovery. A subsidiary must reconcile the group's requirements and its local data. An industrial organization must also examine its inventory and production costs.
Neither the turnover, nor the workforce, nor the financing round alone determine the right organization. Compare recurring load, complexity, internal skills and decisions that require daily presence. The perimeter of a Part-time CFO for startup is built from these needs.
Control budget and availability
Request a quote which specifies the work, its pace, the agreed availability, the data to be provided and one-off missions excluded. Compare proposals with the same scope. Monthly attendance and a full-time salaried position do not provide the same availability, even if the job titles are similar.
For Iter amounts and formulas, see Fractional CFO pricing page. The grid is centralized on this page to avoid reproducing scales in a guide dedicated to the profession.
CFO and DAF: the title does not define responsibilities
CFO means Chief Financial Officer; DAF is the French title directeur administratif et financier. These titles do not imply that one role is purely strategic and the other purely administrative. Responsibilities depend on the organisation and the authority delegated.
The mandate must specify participation in meetings, management, access to data, validations and possible signature. Presenting a report to the board does not mean serving as a director. Preparing a payment does not mean having the authority to authorize it. For job definition, see CFO profession.
How do I know if this model meets the need?
Identify financial decisions that remain pending and work that is falling behind schedule. Ask who makes them today, with what sources and how often. If the problem is primarily due to missing data, plan to put it in order before promising complete reporting.
A regular and manageable need may fall under the part-time CFO. A departure or a temporary situation may require a financial transition management, with adapted handover and availability. A lasting daily workload may justify internal recruitment. These models can complement each other depending on the stages.
To get started, select a few priority deliverables, agree on contacts and access, then organize a review. Check what is produced, what remains blocked and what decisions are made possible. Then adjust the perimeter, rather than choosing a standard cadence before knowing the file.
Frequently asked questions about the external CFO
What is the difference between an external CFO and a Fractional CFO?
Both names can designate financial management entrusted to an external party. The title does not establish the missions: availability, deliverables, powers and responsibilities must be specified in the contract.
Can an external CFO participate in the CODIR or on the board?
The mission may include the preparation of reporting and participation in meetings. This participation does not automatically confer a corporate mandate or signing power; these must be defined separately.
Does the external CFO produce accounting and payroll?
Its role may include coordination and control of the work, depending on the contract. Separately identify the person or service provider who produces the accounting and payroll, their validations and their deadlines.
Is an external CFO or an interim CFO needed?
A recurring need may fall under part-time. A replacement or temporary situation may call for a transition mission, with defined mandate, availability and handover. No universal duration or presence applies to all files.
