FAQs
Frequently Asked Questions
What’s it like working with a fractional team?
Working with a fractional team should feel just like working with your own team. We engage as part time members of your team. We will work with you in the early days of the engagement to determine how best to fit into your preferred work style and be available to you. We often have a mix of onsite and virtual support with our engagements. We are always only an email or phone call away.
How much will this cost?
Costs vary based on the scope and complexity of the engagement. We prepare a detailed Statement of Work (SOW) outlining deliverables and a range of expenses for your approval. Invoices are issued bi-weekly to ensure transparency and manageability.
Will I have my own dedicated resource?
Yes. We assign a dedicated team of fractional resources who remain on your engagement throughout the duration.
What happens if the consultant assigned to me is not a fit?
If the consultant assigned to your project is not a perfect fit, we will address the issue promptly and will make the necessary changes at our expense to ensure you receive the best possible support.
How do I know what you’re working on?
We keep you informed through regular updates and our Quality Program, which includes memos outlining our deliverables, upcoming tasks, and any obstacles we encounter. You will also receive regular feedback from our market leadership to ensure your needs are being met.
How do you staff your engagements?
Our staff are long-term vcfo W2 employees who are thoroughly vetted and regularly trained. We do not hire contractors or gig workers for our engagements. Our comprehensive recruiting process ensures that you work with a dedicated team of professionals who have the expertise and experience to support your business needs.
Fractional CFO - Fundamentals
What is a fractional CFO?
A fractional CFO is a seasoned Chief Financial Officer engaged on a less-than-full-time basis. They provide executive-level financial leadership on a scalable schedule - hours or days per week - aligned to your scope and stage of growth.
How is a fractional CFO different from an interim or full-time CFO?
A full-time CFO is a W-2 executive leading Finance (often IT/HR) every day. An interim CFO fills that full-time seat during a transition. A fractional CFO delivers the same caliber of leadership part-time or as needed - ideal when you don’t require or can’t justify a full-time hire.
What does a fractional CFO actually do?
Partner with leadership on strategy and value creation; build budgets and multi-year forecasts; manage cash and working capital; lead capital raises; support M&A (from modeling to integration); upgrade systems and reporting; mentor the team; and drive KPI discipline.
When should a business hire a fractional CFO?
Typical triggers include: lack of timely, accurate visibility; no forecast or budget; cash uncertainty; preparing for fundraising, acquisition, or exit; rapid growth outpacing systems; entering new markets/products; or needing board-level guidance without a full-time seat.
When is a full-time CFO the better choice?
When you’ve reached sustained scale (often ≥ $50M revenue), your board requires a daily executive, complexity demands constant oversight, or you’ve outgrown the ROI of fractional support.
How does a fractional CFO save cost without sacrificing impact?
You pay only for what you need while accessing executive expertise immediately. With vcfo, you also tap a firm-wide bench (finance, HR, systems) and built-in quality control, so one engagement benefits from many careers’ worth of pattern recognition.
Forecasting & Cash Discipline
What is strategic financial forecasting (vs. a budget)?
A forecast is a forward-looking model that ties strategy to operations and capital needs over multiple periods. Budgets set annual targets; forecasts translate long-term goals into scenarios, resource plans, and measurable assumptions leadership can manage to.
Why do we need a rolling forecast?
Rolling forecasts are refreshed (e.g., quarterly) with actuals and updated assumptions, improving capital deployment, hiring, inventory, pricing, and overall agility compared to a once-a-year budget.
What tools and methods does a fractional CFO use to forecast?
Cohort and pipeline modeling, driver-based revenue/margin builds, KPI frameworks, sensitivity/scenario analysis, and (where appropriate) predictive analytics - always anchored in validated operational inputs, not wishful targets.
Do we need a 13-week cash flow?
Yes - if you want to avoid surprises. A weekly 13-week cash model projects inflows/outflows, surfaces liquidity pinches, and informs use of lines of credit, payment terms, collections cadence, and inventory buys.
How does forecasting support growth and expansion?
It maps talent, systems, facilities, and capital formation to milestones - so you add headcount and infrastructure at the right time, finance growth appropriately, and expand with fewer costly course-corrections.
Capital & Transactions
How can a fractional CFO help with fundraising?
By shaping forecasts and capital plans, preparing materials and data rooms, stress-testing terms, partnering with counsel, and negotiating to protect governance, dilution, and valuation outcomes.
What role do they play in M&A?
Upfront deal logic and criteria, diligence, funding strategy, integration planning, staffing and systems design, and post-close measurement - keeping decisions tied to value creation, not deal momentum.
Turnarounds & Resets
Can a fractional CFO lead a financial turnaround?
Yes - by resetting strategy and unit economics, prioritizing quick cost actions, renegotiating terms, rebuilding forecasts and cash discipline, and restoring lender/investor confidence through credible plans and reporting.
How do you ensure the accuracy of your Quality of Earnings (QoE) reports?
We employ rigorous methodologies and leverage our extensive operational experience developed from working inside similar companies to deliver precise and reliable QoE reports.
What does the v360™ Enterprise Value Roadmap entail?
v360™ is an onboarding experience with vcfo that will unfold in your first 2-4 weeks of working with us. We will need your current financials and a couple of hours of your time to ask you some very in-depth organizational questions. The end result is actionable recommendations to enhance your value well beyond where you are today, addressing factors including but well beyond growth in revenue and EBITDA
How do you support post-transaction integration?
We offer detailed financial and HR integration services, ensuring seamless transitions in the general ledger, purchase price allocation, onboarding, payroll and benefits setup, culture integration, employee retention, and much more.
What are Transaction Advisory Services?
Transaction Advisory services support transactions such as raising funding, buying, selling, and restructuring businesses, and ensuring optimal financial and operational outcomes. Some of the specific activities include due diligence, QoE reports, pre-and post-integration planning and execution and similar.
Why vcfo?
We offer a unique blend of deep operational knowledge and transactional experience, providing a solid foundation for exceptional transaction advisory services.
What’s it like working with a fractional team?
Working with a fractional team should feel just like working with your own team. We engage as part time members of your team. We will work with you in the early days of the engagement to determine how best to fit into your preferred work style and be available to you. We often have a mix of onsite and virtual support with our engagements. We are always only an email or phone call away.
How much will this cost?
Costs vary based on the scope and complexity of the engagement. We prepare a detailed Statement of Work (SOW) outlining deliverables and a range of expenses for your approval. Invoices are issued bi-weekly to ensure transparency and manageability.
Will I have my own dedicated resource?
Yes. We assign a dedicated team of fractional resources who remain on your engagement throughout the duration.
What happens if the consultant assigned to me is not a fit?
If the consultant assigned to your project is not a perfect fit, we will address the issue promptly and will make the necessary changes at our expense to ensure you receive the best possible support.
How do I know what you’re working on?
We keep you informed through regular updates and our Quality Program, which includes memos outlining our deliverables, upcoming tasks, and any obstacles we encounter. You will also receive regular feedback from our market leadership to ensure your needs are being met.
How do you staff your engagements?
Our staff are long-term vcfo W2 employees who are thoroughly vetted and regularly trained. We do not hire contractors or gig workers for our engagements. Our comprehensive recruiting process ensures that you work with a dedicated team of professionals who have the expertise and experience to support your business needs.
What type of companies have you worked with?
We have extensive experience working with companies in defense, biosciences, healthcare, energy and aerospace, providing tailored support for both commercial businesses entering government contracting and established government contractors looking to enhance their commercial components. Our expertise further extends to defense and intelligence hardware/software, artificial intelligence, medical technology and advanced professional service such as human factor engineering, as well as other spheres within the contracting and grant ecosystem.
Do you have experience with indirect rates?
Yes, our team has deep expertise in forecasting and managing indirect rates, ensuring accurate cost allocation, and compliance with government standards.
Are you familiar with DCAA audits?
Yes, we are well-versed in preparing for and navigating DCAA audits, helping you establish robust accounting systems and procedures to meet audit requirements and avoid potential penalties.
What type of contracting vehicles have you worked with?
We have experience with firm fixed price, cost plus, time and material, and labour hour contracts as well as SBIR/STTR grants. We also have experience with direct to government sales and sole source.
How does v360 differ from an exit planning tool?
v360 differs from an “exit-planning” tool by providing a comprehensive, multidimensional assessment of your company's value well before exit becomes the objective. It focuses on enhancing operational areas such as leadership, infrastructure, and profit optimization. Unlike traditional exit-planning tools, v360 aims to improve your business’s value at every stage, not just in preparation for an exit. This approach ensures your company is well positioned for funding events, acquisitions, talent attraction, long-term growth and ultimately exit.
How much of my time is required?
Your time investment is minimal. We require access to current financial statements and about two hours to answer 125+ key questions. Our experts handle the rest, delivering a detailed report with insights and recommendations. Your meeting with us to deliver results will be another 1-2 hours.
Is v360 suitable for businesses of all sizes?
Yes, v360 is designed to benefit businesses of various sizes and industries. The areas of focus are the same, however our approach is customized to meet the specific needs and challenges of each business we work with.
Does a v360 help facilitate transactions?
Yes. Our Capital Markets services are tailored to support our clients with Transaction Advisory and Representation. This could include bringing in new debt, attracting additional equity, supporting acquisitions, selling your company, and a wide array of other activities.
Can we use v360 to support a valuation for tax, litigation, or transactional purposes?
The v360 report is designed to maximize your business's value, not to provide an exact valuation. While our experts excel in valuing private companies and managing transactions, the main goal of v360 is value optimization. For traditional third-party valuations, we can recommend suitable services. For transactions, v360 levels the playing field between business owners and frequent market participants. It helps you see how the other side of the table views your company's market position, so sharing the report with negotiation counterparts can reveal your strategy in situations you would prefer not to.
What is a Quality of Earnings (QoE) assessment?
A Quality of Earnings (QoE) assessment is a detailed analysis of a company’s financial statements to determine the sustainability and accuracy of its earnings. This assessment helps identify any adjustments that need to be made to reflect the true economic performance of the business.
Why is a QoE assessment important?
A QoE assessment is crucial because it provides a clear picture of a company's financial health and performance. It helps buyers and sellers make informed decisions by highlighting any financial irregularities, ensuring transparency, and reducing the risk of unexpected issues during a transaction.
How long does a QoE assessment typically take?
The duration of a QoE assessment can vary depending on the complexity and size of the business. Generally, it takes between 2 to 6 weeks to complete a thorough assessment.
What is a Sell-Side Quality of Earnings (QoE) assessment?
The seller conducts a sell-side QoE assessment to prepare for a business sale. It aims to present a clear and accurate picture of the company’s financial performance, proactively address potential buyer concerns, and help maximize the sale price.
How does a Sell-Side QoE benefit the seller?
By conducting a Sell-Side QoE, sellers can identify and address any financial discrepancies before entering negotiations, making their business more attractive to potential buyers. This helps build trust and can lead to a smoother, faster transaction process.
What should a seller expect during a Sell-Side QoE assessment?
During a Sell-Side QoE, the assessment team will review financial statements, conduct interviews with key personnel, analyze revenue and expense trends, and identify any one-time or non-recurring items that could impact earnings. The goal is to ensure the financials presented to potential buyers are accurate and reliable.
What is a Buy-Side Quality of Earnings (QoE) assessment?
A Buy-Side QoE assessment is performed by the buyer to evaluate the financial health and earnings quality of a potential acquisition target. It helps buyers understand the target company's true economic performance and identify any risks or issues that may affect the transaction.
How does a Buy-Side QoE benefit the buyer?
A Buy-Side QoE provides the buyer with an in-depth understanding of the target company's financial condition, ensuring that the purchase price is justified and that there are no hidden financial risks. It can also uncover opportunities for post-acquisition improvements.
What should a buyer expect during a Buy-Side QoE assessment?
During a Buy-Side QoE, the assessment team will analyze the target company’s financial records, validate revenue and expense items, assess working capital and cash flow, and identify any adjustments needed to present an accurate financial picture. The process includes thorough due diligence to ensure the buyer is making a well-informed investment.
What key areas are analyzed in a QoE assessment?
Key areas typically analyzed in a QoE assessment include revenue recognition, cost of goods sold, operating expenses, working capital, cash flow, and any one-time or non-recurring items. The goal is to assess the sustainability and accuracy of the reported earnings.
What documents are needed for a QoE assessment?
Documents typically required for a QoE assessment include financial statements (income statement, balance sheet, cash flow statement), general ledger, tax returns, management accounts, sales records, expense reports, and any relevant contracts or agreements.
How does vcfo conduct a QoE assessment?
vcfo’s approach to QoE assessments involves a thorough review of financial documents, interviews with key personnel, detailed financial analysis, and the identification of any adjustments needed to reflect the true economic performance of the business. We provide a comprehensive report outlining our findings and recommendations.
Can a QoE assessment uncover potential risks?
Yes, a QoE assessment can uncover potential financial risks, such as revenue recognition issues, expense misclassifications, or non-recurring items that may distort earnings. Identifying these risks early can help in making more informed decisions during a transaction.
How much does a QoE assessment cost?
The cost of a QoE assessment can vary based on the size and complexity of the business. At vcfo, we offer competitive pricing tailored to the specific needs of our clients. Contact us for a detailed quote based on your requirements.
How can I get started with a QoE assessment from vcfo?
To get started with a QoE assessment, simply contact our Transaction Advisory Support team. We will schedule an initial consultation to discuss your needs and provide a customized proposal outlining the scope, timeline, and cost of the assessment.
What is the Workplan Analysis?
Workplan Analysis is a comprehensive assessment that evaluates your company’s internal processes, systems, and workforce capabilities to identify opportunities for improvement. It provides data-backed recommendations to enhance productivity, streamline operations, document activities, and optimize staffing levels.
How long will this assessment take?
The duration of the Workplan Analysis depends on your department's size and complexity. But typically, just a few weeks.
Who from the vcfo team leads these types of engagements?
Seasoned professionals with extensive experience in finance, HR, and operations lead our engagements. Our consultant will work closely with your team to guide the assessment and implementation process.
What kind of recommendations should we expect to receive?
You can expect to receive strategic recommendations that include data visualizations of where time is spent and on what deliverables and actionable insights for reconfiguring roles while adding technology and process improvement where it makes the most sense. The recommendations will inform potential staffing levels and changes, process improvements, and potential investments in technology or equipment to enhance efficiency and productivity.
What exactly does the Workplan Analysis involve?
Our Workplan Analysis involves in-depth interviews and shadowing of your team members, detailed documentation of daily, weekly, monthly, and annual tasks, time tracking, and assessment of existing process documentation. We identify critical paths, resource allocation issues, internal weaknesses, and opportunities for increased productivity, ultimately delivering actionable recommendations.
What types of organizations benefit the most from your services?
Our services benefit finance, accounting, and HR departments in organizations of all sizes, especially those experiencing staffing changes, bandwidth issues, organizational restructuring, or preparation for growth.
How will this service help improve our team’s productivity?
Our Workplan Analysis helps streamline workflows, balance workloads, and enhance productivity by identifying inefficiencies, optimizing resource allocation, documenting critical processes, and providing actionable recommendations. All staff have a clearer picture of their role within the department and benefit from any efficiency changes. Leadership also uses this report to guide staffing decisions and level up candidates' position requirements.
What kind of support do you provide after delivering the analysis?
We offer follow-up consultations to help implement our recommendations and provide ongoing support to address any challenges that may arise. Our goal is to ensure sustained improvements in your operations.
