Fractional CFO for Manufacturers

What a fractional CFO does for a manufacturer

A manufacturer's finance questions are different from a services company's. Cash is tied up in raw materials, work in process and finished goods. Margin depends on how labor and overhead are absorbed into product cost. Growth consumes working capital long before it produces profit. A fractional CFO's job is to turn those mechanics into decisions the owner can make with confidence.

In practice that means four kinds of work:

• Seeing the cash coming. A rolling 13-week cash flow forecast built on real timing — payroll dates, supplier terms, customer collections, equipment payments — so a tight month is visible weeks before it arrives.
• Knowing what each product and job earns. Margin by product line, customer and job, with labor, overhead and freight assigned properly, so pricing and quoting decisions rest on true cost.
• Planning ahead. Annual budgets and rolling forecasts that tie the production plan to the P&L, balance sheet and cash, and capital plans for equipment and expansion with a clear return.
• Being the finance voice outside the building. Lender packages, covenant tracking, investor and buyer conversations, and audit preparation.

A fractional CFO does not replace your bookkeeper or controller. The bookkeeper records transactions and the controller owns an accurate, on-time close. The CFO decides what the business should do with those numbers. If your close isn't reliable yet, we start there — see outsourced controller services.

Manufacturing is our core practice

Generalist advisory firms spend the first months of an engagement learning how a plant works. We start from there. Absorption costing, standard-cost variances, WIP valuation, landed cost on imported material, capacity constraints, burdened labor rates and the cash cycle of a job shop are the everyday subject matter of our work, not special topics.

That focus shows up in the questions we ask. Instead of "what were sales last month?" we ask which jobs ran over their routed hours, whether overhead was fully absorbed at current volume, how many days of cash are sitting in finished goods, and whether your quoted shop rate still covers what an hour in your plant really costs.

What a fractional CFO costs compared with a full-time hire

A full-time manufacturing CFO typically starts at a base salary of $250,000–$300,000. Add a bonus, benefits, payroll taxes and executive recruiting, and year one commonly reaches $425,000–$580,000 or more before any equity. A fractional CFO delivers the same senior judgment on a flat monthly fee scoped to the work you need — usually a fraction of that cost, with no recruiting delay and no long-term commitment. The full breakdown is on fractional CFO vs. full-time CFO.

Fractional CFO for manufacturers in Dallas–Fort Worth and nationwide

We're based in Prosper, Texas, and work with manufacturers across the Dallas–Fort Worth area — Dallas, Fort Worth, Plano, Frisco, Garland, Richardson, McKinney and the surrounding industrial corridors — as well as manufacturers nationwide. Most of the work happens on a shared screen: monthly reviews, forecast updates and lender preparation don't require someone in your building every week. When a site visit matters — a physical inventory, a new line coming online, a capital project or a meeting with your bank — we're there.

Working remotely also changes the economics. You get a CFO who has seen how dozens of other manufacturers handle the same decisions, without paying for travel time or a full-time seat. And because our engagements are monthly rather than long-term contracts, the level of support can rise around a big decision and settle back once it's made.

Results from manufacturing CFO engagements

• Harrow Fabrication, an ASME-coded fabrication shop, rebuilt its burdened labor rate, designed milestone billing so projects fund themselves, and diversified into new markets with pricing it could defend.
• Tessaline Devices, a consumer electronics importer, grew revenue several-fold over five years without drawing on its line of credit by funding inventory through customer prepayments — then hired the in-house finance team we helped build.
• Gleco Plating, a multi-plant metal finisher, gained location-level financials, a plan for the cash its growth requires, and an ERP that ties the office to the plant floor.

Serving the Dallas area? See outsourced accounting and fractional CFO for Dallas manufacturers.

Frequently Asked Questions

What does a fractional CFO do for a manufacturer?

A fractional CFO provides part-time, executive-level financial leadership: cash flow forecasting, margin and pricing strategy, budgeting, capital planning, lender reporting, and preparation for financing or a sale. For a manufacturer the work centers on inventory and work in process, product and job costing, and the working capital that growth consumes — all without a full-time salary.

How much does a fractional CFO cost compared to a full-time CFO?

A full-time manufacturing CFO typically starts at $250,000–$300,000 in base salary, and with bonus, benefits, payroll taxes and recruiting, year one often exceeds $425,000. A fractional CFO is a flat monthly fee scoped to the hours and work you need, usually a fraction of that cost. Our engagements are scoped on a free call.

When should a manufacturer hire a fractional CFO?

Common signals: revenue is growing but cash feels tight, you can't tell which products or jobs are most profitable, you're planning a major investment, refinancing or sale, your lender wants better reporting, or decisions are being made on instinct because the numbers arrive too late to use.

Is a fractional CFO worth it for a smaller manufacturer?

Often yes, because smaller manufacturers feel every dollar. A good fractional CFO usually pays for itself by finding margin hidden in pricing and costing, freeing cash tied up in inventory and receivables, and preventing expensive decisions made without the numbers.

What's the difference between a fractional CFO and a controller?

A controller owns the accuracy and timeliness of the accounting: the close, reconciliations, inventory and WIP, and the financial statements. A CFO owns what the business does with those numbers: cash strategy, pricing, budgets, capital and lender relationships. Many manufacturers need a reliable controller function first and CFO-level guidance on top.

Will a fractional CFO work with our existing CPA?

Yes. We are not a CPA firm and we don't prepare tax returns. We keep your books and reporting in the shape your CPA needs, coordinate year-end, and bring your tax preparer in on decisions with tax consequences — so your CPA spends less time cleaning up and more time advising.