Fractional CFOs offer flexible, expert financial guidance to help AEC firms grow, reduce risk, and improve efficiency.
The term fractional chief financial officer (or FCFO) is appearing more frequently in industry conversations – and for good reason. If you’ve ever thought your firm needed deeper financial insight, stronger planning, or more strategic financial resources, a fractional CFO may be the answer. Whether your firm is looking to grow, safeguard profits, or optimize the balance sheet, bringing in a seasoned financial expert on a part-time or project basis could provide the clarity and direction you need.
How fractional CFO engagements work.
A fractional CFO brings senior-level financial expertise at a fraction of the cost of a full-time hire. Depending on your firm’s needs, this professional may serve as a strategic advisor, hands-on implementer, or even a board member. While most engagements follow a similar process, the scope and fee structure are always tailored to fit the size, complexity, and goals of each individual firm.
The engagement typically begins with a discovery phase that includes expectation setting, goal definition, and initial analysis. This preliminary process – usually lasting two to four weeks – involves a comprehensive financial review and leadership interviews, culminating in a report that outlines key findings and recommendations. If the firm chooses to move forward, the next phase finalizes scope, time commitment, and pricing. Engagements are most often billed hourly and can be configured flexibly to align with budget constraints and strategic objectives.
The why.
If you’re wondering whether a fractional CFO is right for your firm, it starts with understanding the core financial questions every AEC firm leader should be able to answer:
- Do you have a clear picture of your financial risk? Consider how your firm would be affected by an unexpected slowdown or external disruption.
- Are you operating as effectively and efficiently as possible? Evaluate your return on investment in both labor and indirect costs, including insurance coverage, overhead allocation, and overall expense management.
- Do you receive the information you need to make timely, informed decisions? Ask whether your reporting processes give you actionable insights on operations, clients, and projects – when you actually need them.
- Are your systems and people aligned with your goals? Think about whether your team and tools are working well together. Is your labor utilization rate where it should be? Is your markup aligned with your value?
- What’s the cost of inefficiency? Outdated systems and a lack of timely project data can create costly delays and misalignment – how much could you be losing?
- What’s the true cost of making improvements – and what’s the potential return? Weigh the investment in new systems or staff against the potential savings and effectiveness gains.
Navigating the financial side of your AEC firm can be complex – but you don’t have to do it alone. A fractional CFO offers a flexible, scalable way to access the strategic insights and financial oversight your firm needs to grow, adapt, and succeed in today’s unpredictable market. From improving operational efficiency to clarifying risk and measuring ROI, bringing in the right expertise can unlock real value.
Zweig Group’s financial experts understand the unique challenges of the AEC industry. Whether you’re looking for board-level insight, ongoing financial planning support, or a one-time strategic assessment, we offer the benchmarking, industry knowledge, and guidance to help you operate more effectively. Let us help you move beyond gut instinct and toward confident, data-backed financial leadership. Learn more about Zweig Group’s Performance consulting services here.
Dathan Gaskill is a Performance consultant at Zweig Group. Connect with him at dgaskill@zweiggroup.com.
