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The Benefits of Hiring a Fractional CFO for Cannabis Business

A report by the Cannabis Business Times found the top three business related challenges to the industry were competition/declining prices, compliance, and financial management. How do you tackle these financial hurdles without an experienced CFO?

Like all business owners, you want your cannabis business to prosper and grow. With no government funding or protection, a cannabis business’ management team is vital to the success of the business. Hiring an outsourced CFO is an effective way to add a financial professional with a growth mindset and cannabis knowledge to your fundamental team.

Does an outsourced CFO help a cannabis business?

By 2025, the cannabis industry is projected to generate $30 billion dollars in sales. Having an outsourced chief financial officer on your team will help harness those sales and take financial planning to the next level.

Data-Driven Management

A fractional CFO brings an unbiased 3-party perspective to your team collaberation. They are using financial tools to guide actions and decisions towards the overall financial goals. For example, at CFOshare, we analyze management plans for how fast to hire and grow. A cash flow model identifies the critical range between losing profits from slow growth and a cash-crisis if hires are made too quickly. This data transparency and 3rd party perspective allow all parties to align with growth goals.

Practical Overhead

A fractional CFO for cannabis is a cost-effective solution for a strategic hire that every business needs. A traditional CFO is expensive both in salary and benefits, often costing over $250,000 per year. There might not be 40 hours of CFO work per week! With a fractional member of your team, you reduce overhead spending and pay only for the time you need.


A cannabis industry outsourced CFO’s job is to give you, the CEO, insight to help drive business decisions. They are there to present the numerical facts and make recommendations based on those facts. Their strategic insight should have your goals and your teams’ goals in mind.

What should I be looking for in a fractional CFO for a cannabis or CBD business?

Unpredictability with laws and volatility in demand make the cannabis industry a difficult space to navigate. You should search for a team, like CFOshare, who has had experience in financial matters with cannabis.

More than a CPA

A CPA is not the same as a CFO. Cannabis accountants with a CPA license can help you with legal tax complications. A chief financial officer is helping you make strategic data-driven financial decisions.

Beneficial Relationships

Look for a CFO who has relationships that benefit your goals. You want them to help you navigate banking relationships as well as understand the implications of Section 208e—the tax code prohibiting illegal businesses from writing off expenses.


The ever-changing laws surrounding cannabis can be a minefield and your fractional CFO should be incorporating those changes, creating strategic business forecasting.  Hire a CFO that is responsive to the factors driving the cannabis market while remaining compliant.


A CFO in the cannabis industry needs to have cannabis and related product experience. They also need to be well versed in financial tools like modeling, budgeting, and revenue strategies to name a few.

Mergers and Acquisitions

Companies are looking to become vertically integrated by owning cannabis cultivation through to customer sales. This drive to become integrated has led to many mergers and acquisitions. A CFO with experience in both buy and sell side diligence will give you the upper hand in a deal.

The Bottom Line

As a CEO your focus is growing your business. The benefits of hiring a CFO for cannabis related strategy, allows you to capitalize on the advantages of a financial professional with expertise in your industry.

Call CFOshare for a free consultation, and we will show you how our financial experts can provide you with the services and the insight you need to make smart business decisions and stay competitive.

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