Not ready to pull the trigger on a Fractional CFO just yet? That’s okay!

Aug 29, 2023

What to do if your business doesn't need a Fractional CFO just yet?

Your company is on the brink of Prime Time, but is it possible the business doesn’t need a Fractional CFO just yet?

There are many reasons to bring on a Fractional CFO or new Controller, but let’s be real…taking on that additional monthly expense is a decision no one wants to pull the trigger on. Expenses are fun when it’s a surprise office lunch for the team, new shiny assets, or maybe a trip to a conference in a ritzy resort hotel, but some costs are just downright lame to spend money on. Insurance, IT, accounting…yuck!

So, how can you keep your financials in check and make informed decisions without a CFO?

 

Hire a Rockstar Bookkeeper or Accountant

If your company isn’t ready to use financial analysis to scale and grow, the next best thing is to have a Rockstar Bookkeeper or Accountant with an analytic mindset to be sure everything is classified correctly for the CPA at year end. Please be sure to check out our latest blog “Things you need to know about your Bookkeeper/Accountant” for a comprehensive list of questions and red flags to watch out for in your accounting functions.

 

Leverage Technology

Today’s software landscape offers myriad tools for automating accounting processes and financial analysis. Utilizing software like QuickBooks or Xero can give you more control and insight into your business without the need for a fractional CFO. These tools usually come with free training videos.

 

Upskill Your Team

Training your team to understand basic financial principles can go a long way. Workshops on understanding financial statements or basic cash flow management can empower your team to make informed decisions.

Have your bookkeeper or accountant put together a monthly financial package that reviews all the Financial Statements, budget variance, cash flow forecast, and AR/AP aging reports. This is a big part of financial analysis for small businesses.

 

Adopt Leadership Principles

Leadership isn’t just for the C-suite; it’s a culture. Before you bring in a fractional CFO to align your finances with your vision, make sure your team is already working cohesively and understands the company’s broader goals. Establish core leadership principles and communication protocols that facilitate better decision-making.

Learn to set annual and quarterly goals, and establish weekly meetings and metrics to achieve them. Implementing EOS (Entrepreneurial Operating System) principles is hard work, but will yield instant positive results…and it’s free!

 

Consult with Advisors

If you’re at a point where the business complexities are growing but hiring a fractional CFO seems premature, consult with trusted advisors or peers. Sometimes, a different perspective is all you need to solve a financial puzzle.

 

Take Ownership

Finally, owning your financial decisions gives you a layer of accountability that can serve you well when you eventually bring in a fractional CFO. The more you understand your financial landscape, the more effective your partnership with a CFO will be. A week or so of Finance training will be “good enough” until someone qualified comes in to help right the ship.

 

Hire a Fractional CFO…Temporarily

Don’t underestimate you or your own team!

Bringing on a Fractional CFO for just a couple months can save your company tons of time by teaching you how to do things the right way, using high level reporting analysis and techniques. Maui CFO has experience teaching departments data analytics and accounting fundamentals, but there are plenty of free online courses that can fill the gaps.

 

So, before your business goes hunting for a fractional CFO it doesn’t need just yet, make sure you’ve done your groundwork. By the time you’re ready to bring one on board, you’ll be confident that it’s the right move for your business.

Remember, the aim here is to make strategic decisions that are best for your company, using all the available information.