10 Questions To Ask Your Fractional CFO

Running a business often feels like juggling flaming swords - trying to grow, manage teams, satisfy customers, and somehow not run out of money. That's where a Fractional CFO comes in. When the financial picture gets murky, these are some of the questions I help business owners answer.

1. “What will our cash position look like in three months?”

Cash flow surprises are like sandstorms - they hit fast and leave a mess. We build rolling 13-week cash flow forecasts so you can see what's coming before it hits. Not sure if you need CFO support? Take our CFO readiness assessment. One client was about to sign a lease on a couple new work trucks, but the forecast showed they’d run out of cash six weeks after. We pumped the brakes and avoided a painful mistake.

2. “How much do we need to sell this quarter to break even?”

If you don’t know your break-even point, you’re flying blind. By calculating fixed vs. variable costs you will then know exactly how much revenue you need to cover your overhead. For a local Dubai catering business, for example, this would help them set realistic sales targets - and stop underpricing their corporate packages just to win deals.

3. “How do I know if we’re pricing our jobs, products, or services correctly?”

Gut feeling isn’t a pricing model. With proper cost breakdowns, overhead allocation, and margin analysis, it’s possible to confidently adjust pricing. A contractor I worked with was winning lots of jobs but still losing money at the end of each quarter. We restructured his pricing model based upon actual costs and overhead - and margins improved within a few short months.

4. “Can we model how a 5% cost increase will impact our gross margin?”

Even small cost increases can have a big impact. Building what-if scenarios helps quantify that risk before it eats into profits. We found that a 5% rise in raw material costs for a mid-size manufacturer would wipe out nearly a third of their gross margin. That insight led them to renegotiate with vendors and plan how to pass costs onto customers if needed, allowing them to rest easy knowing they had a plan.

5. “Which customers or product lines are least profitable, and why?”

Not all revenue is created equal. A profitability analysis can highlight which clients, products, or locations are dragging down the bottom line. Imagine you are a printing company in Dubai with six different product lines. On the company P&L, you are profitable. But once you break down the P&L by product line, you see that one line makes up 70% of profit and two lines are actually bleeding money. Now you have the insight to grow the profitable lines and made data-based decisions on how to handle the losers.

6. “Are we setting aside enough to cover upcoming tax payments?”

With the UAE’s new corporate tax regime now in effect, many businesses are navigating uncharted territory. It’s important to proactively set up monthly accruals and maintain clarity on expected liabilities. Many businesses hadn’t planned for the first corporate tax installment and were surprised to learn how much they owed near the deadline. A tax reserve or tax planning strategy can help you get ahead of future payments without stress. Learn more about comprehensive CFO services that include tax planning.

7. “Are we on track to hit our financial targets this year?”

Having annual goals is one thing - tracking them is another. With performance dashboards tied to monthly or quarterly milestones, progress becomes visible in real-time. A retail store I worked with began reviewing financial targets monthly via their new custom dashboard. Combined with operational excellence, they achieved record performance. This allowed them to make smarter inventory and staffing decisions that helped them stay on track in order to surpass their annual targets for the first time in years.

8. “Will we need financing, or can we self-fund growth over the next 6-12 months?”

Growth eats cash, and planning for it is key. Often, this requires strategic leadership across multiple functions. Scenario modeling can reveal whether internal cash flows are enough, or if outside financing is needed. For example, say you’re a GCC logistics company preparing to expand your fleet, but through scenario modeling you discovered you’d be cash-negative by month four. Now you can make the choice to either stagger equipment purchases and tightening up receivables, or visit the bank for some outside financing instead to stay in the green.

9. “Where can we find the working capital needed to fulfill this new contract we just signed?”

New contracts often require upfront costs - staff, materials, or inventory - before the first dirham is received. Reviewing working capital levers like payment terms, receivables, and inventory timing can unlock hidden liquidity. If short-term cash is still needed, there are many options other than the bank that can make sense depending on the situation.

10. “Which variables have the biggest impact on our bottom line?”

Sometimes it’s not the biggest line item that makes the biggest difference. A sensitivity analysis helps pinpoint where small changes have outsized effects. In one case, a company learned that every 1% discount offered to customers cost them 4% of net income. That’s the kind of insight that shapes better decision-making across the board.

BONUS ROUND!

11. “What’s the biggest financial risk we’re not paying attention to?”

That’s the million-dirham question. I review your balance sheet, cash flows, and contracts to uncover hidden risks - like underinsured assets, excessive customer concentration, or weak internal controls. One client didn’t realize their top two customers made up 70% of revenue. They were happy to have the business but didn’t understand the risk they faced if one of those customers disappeared.

12. “How can we get our customers to pay us sooner while keeping them happy?”

Cash flow doesn’t just depend on what’s sold, it depends on when it’s collected. Simple changes to invoicing practices, payment terms, or incentive structures can make a big difference. One business reduced its collection period by 10 days just by using new call scripts we wrote for the Accounts Payable follow-up calls. Customers paid faster and were actually happier.

13. “When is the right time to take on debt in order to grow the business? How much can I take on safely?”

Debt can be a growth tool, but only when the timing, terms, and repayment capacity align. Cash flow forecasting and return-on-investment modeling help answer that. For instance, a cleaning services firm wanted to invest in more vans and staff but was apprehensive to take on more debt. This expansion also required operational planning for managing the larger fleet. By modeling the ROI on the expansion, we showed the business could take on AED 250K in debt comfortably - and break even on the investment within eight months.

14. “I want to get rid of these loan payments. Should I use working capital to pay them off early?”

It depends. Paying off debt can free up future cash flow, but it might also leave the business exposed in the short term. Say you had some extra cash and you wanted to clear an outstanding loan before year-end to save on interest. When you plugged that scenario into your cash flow forecast it showed you’d have very tight cash for the next 60 days because of seasonality in the business, leaving no room for surprises. In that case, you’d have the information to make a decision based upon the numbers instead of guessing.

So, have you ever had any questions like these come up in your business? Take our executive readiness assessment to identify your specific needs.

We've found these to be common with companies across all industries in Dubai, and they're exactly what a good fractional will help to solve. Ready to discuss your specific situation? Apply for a consultation to get started.

With the right financial visibility and guidance, decisions become clearer, risks become manageable, and business becomes a whole lot less stressful. Explore our complete guide to fractional CFO services to learn more.