Eric Herrenkohl’s Post

When a company is ready for finance leadership and strategic guidance but not yet ready for a full-time CFO, a fractional CFO might be the answer. This RoseRyan Insights article unpacks how. Fractional CFOs help startups, nonprofits, and small and medium size businesses build off their early success, to make smart financial moves, improve financial health, and prepare the company for an even brighter future. What Is a Fractional CFO? A fractional CFO brings senior level experience to startups, nonprofits, and small and medium size companies for a set number of hours or on an as-needed basis. Whether you opt for a fixed fee rate that depends on the range of accounting services needed, or pay by the hour, fractional CFO services can be a scalable, cost-efficient solution for your company. This role tends to be especially fitting for venture-backed companies that are seeking out CFO expertise at a doable price point while enabling the company to stay flexible in its early growth stage. Fractional CFOs have steep experience in this role, so they can seamlessly lead the finance team once they get to know your business. Depending on your budget and your needs, their responsibilities can include: ⚬ Overseeing financial operations, & managing the Finance & Accounting team. ⚬ Developing & managing the budgeting process, forecasts, & cash flow management. ⚬ Mentoring & guiding company leadership as they consider & pursue strategic changes. ⚬ Developing performance measurements that tie into the company’s strategic goals. ⚬ Determining investment strategies & fundraising plans. ⚬ Representing the company in investor presentations & board reports. A company starts looking into fractional CFO companies when they know they need the specialized expertise of a CFO but are not prepared for the salary, benefits and commitment associated with a full-time, traditional CFO. Fractional CFOs dedicate a certain number of their working hours toward the company per month. The Benefits of a Fractional CFO for Startups, SMBs and Nonprofits: A fractional CFO fills a critical need at a critical time in a young company’s growth journey. Here are some of the other benefits of fractional CFO services: ⚬ A fractional CFO is a cost-effective solution. ⚬ Fractional CFOs bring strategic guidance & expertise. ⚬ Fractional CFOs offer scalability & flexibility.   Read more about this type of role in our article: ‘What To Look For In Fractional CFO Services That Will Adapt To Your Startup, Nonprofit Or Growing Small Business’: https://lnkd.in/dFZt2BEq And if this flexible, affordable solution sounds like a good fit for your organization, learn more about our Fixed Fee Fractional solution here: https://lnkd.in/diPpcZdu #fractionalCFO #fractional #CFO #interimCFO #fixedfee #interim #outsourced #accounting #finance #accountant #nonprofitaccounting #bookkeeping #entrepreneur #smallbusiness #startup #bizdev #affordableaccounting

A lot of people ask me, "Hey Chris, our company isn't developed enough that I need a full-time CFO, but we still can't manage our finances well." What possible remedy is there for this? Bringing on a full-time CFO? No, it is very expensive, making it unsuitable for small businesses. Hiring a contract agency to redesign the structure and implement a new strategy for a period of time similar to three to six months? To this, I would say, "One can try, but the chances are 50/50." Because someone without financial expertise cannot maintain those strategies after the agency's contract expires, and eventually the business will collapse once more. Fractional CFOs?? I have heard about this, but not sure what they do and how they can be helpful for the business. Indeed!!!!!! Yes, I will outline the services to be expected as well as the (quantifiable) advantages of selecting one here. In many small businesses, fractional CFOs—who carry out the tasks required by the organization but are not full-time in-house CFOs—can be beneficial. How does it work??? A fractional CFO is, as the name implies, a person who, under contract, provides financial expertise to a start-up. Part-time or fractional CFOs typically assist start-ups temporarily but have a wealth of prior CFO-level experience. Fractional CFOs are typically involved in multiple start-ups. What does a fractional CFO do for growing businesses? 1. Finance - This is the CFO's bread-and-butter role. The financial procedures of start-ups grow too complicated for the founders to handle alone, even with the assistance of an accountant. They require an individual who can see beyond the details of accounting and financial reporting to the broader picture. 2. Optimize strategy - Since cash is the lifeblood of businesses, CFOs play a crucial role in developing and refining strategies as the financial gatekeepers. A fractional CFO can provide insight into the financial aspects of strategy by providing an analysis grounded in data. Put differently, your fractional CFO can evaluate your plan and let you know if it makes sense financially. And what steps can be taken to optimize it if not? 3. Implement systems - Start-ups must implement better systems as they grow in order to adapt to their changing needs. This calls for the oversight and direction of a person with experience implementing several systems in various contexts. Someone who has seen it all can anticipate potential problems and fix them before they arise. With a fractional CFO on staff, the founders can assign all audit-related duties to a professional with relevant experience. There are many more advantages, and to know more you can book an appointment with us, we provide all accounting and finance, tax tax-related solutions which will help you to utilize the resources more efficiently. Let me know in the comment sections if you have questions similar to these. #finance #money #business #cfoservices #fractionalcfo #financialadvisor #nebraska

3/3 When to hire a Virtual CFO? A virtual CFO's job is more strategic and value-focused. As the business grows and needs changes, the role of the CFO becomes most relevant in the business to support the regulatory environment provide professional advice, and support business growth. The growth of Start-ups and MSMEs requires seasoned finance professionals to manage the finances. Coupled with increased tax and regulatory compliance, requires much more detailed disclosures, industry comparisons, and improved corporate governance for the external stakeholder management. In addition, earning and budget pressures, robust reporting mechanisms to track business results, and internal team coordination challenges. Virtual CFO will help and enable and resolve all the issues the team faces by eliminating the sources of financial w while ensuring the accounting records are robust and reliable. In addition, the outsourcing of virtual CFO services will not just limit to managing the finances; they will work as a coach to businesses and mentor HOD's helping them in decision-making, evaluating business opportunities, and providing guidance allowing promoters to focus on business growth Virtual CFO for Start-ups The concept of a virtual CFO is unique and advanced which is trending due to the increase in competition and advancement of digital business. It’s way more challenging for start-ups or small enterprises to stay relevant in the market without CFO support and hiring in-house is way more expensive for a small-size organization. When a start-up hires a Virtual CFO Service, it gains access to a knowledgeable and experienced CFO professional at a comparatively low cost. Most start-ups are now moving forward with Outsourced CFO Services to grow extensively in the market. Virtual CFO for MSMEs Micro, Small, and Medium enterprises (MSMEs) in the manufacturing and service sectors that account for a large part of the Indian economy have got a special focus. The post-COVID period is expected to be the golden era of MSME in the country. A lot of MSME businesses fail in spite of high abilities due to poor financial management, lack of industry experts or mentors, and lack of decision makers. A virtual CFO service identifies the problems of an MSME effectively by guiding them with industry-specific financial, legal, and professional advice and supporting them with the success-based model. By outsourcing all of its management responsibilities to a virtual CFO the company can focus on its primary business.

How a Virtual CFO Unleashes Your Business Potential Introduction: Greetings entrepreneurs! Beyond the conventional roles of an accountant, a Virtual CFO is a strategic architect, to unlock your business's full potential. Let's delve into the extraordinary advantages that a Virtual CFO brings to the table. Strategic Financial Vision: A Virtual CFO is not just a number-cruncher; they are visionaries armed with strategic financial insight. By understanding your business goals, market dynamics, and industry trends, a Virtual CFO crafts a financial roadmap that aligns with your aspirations, steering your business toward long-term success. Cost-Efficient Expertise: Hiring a full-time CFO can be a significant financial burden for startups and small businesses. Enter the Virtual CFO – a cost-efficient alternative that provides access to top-tier financial expertise without the hefty salary commitment. It's like having a high-caliber financial strategist at your fingertips, optimizing your resources for maximum impact. Comprehensive Financial Management: Beyond traditional accounting roles, a Virtual CFO handles a spectrum of financial management tasks. From budgeting and forecasting to risk management and financial analysis, they ensure that every facet of your business's financial health is not just maintained but optimized for growth. Real-Time Decision Support: In the fast-paced business world, decisions need to be made swiftly. A Virtual CFO offers real-time support, providing insights that empower informed decision-making. Whether it's capital allocation, investment strategies, or cost-saving measures, having a Virtual CFO in your corner ensures agility in decision-making. Risk Mitigation and Compliance: Navigating regulatory landscapes and mitigating financial risks are daunting tasks. A Virtual CFO serves as your compliance ally, keeping your business on the right side of the law while proactively identifying and managing potential risks. This foresight protects your business from financial setbacks and legal complications. Conclusion: In the quest for business success, a Virtual CFO is not a luxury but a strategic necessity. Their multifaceted role goes beyond traditional accounting functions, actively contributing to unlocking your business's full potential. From strategic financial vision to cost-efficient expertise, a Virtual CFO is the partner your business needs to thrive in a competitive landscape. So, embrace the Virtual CFO advantage and watch as your business transcends financial limitations, propelling itself toward unparalleled success. Here's to unlocking your business potential with the strategic brilliance of a Virtual CFO! #startup #virtualbookkeeping #virtualbookkeeper #virtualassistance #virtualaccountant #virtualcfo #startupadvice #zohobooks #xeroadvisor #xerocertified #xeroaccounting #xero #financeprofessionals #taxprofessionals #ca #charteredaccountant #cfoadvisory #cfoservices #accounting #accountant

One of the things I like about my job is talking to people about what they do. One of the terms that's been popping up over and over in many of these conversations was fractional CFO. I wanted to find out more, so I asked Healy Jones, VP of Financial Strategy at Kruze Consulting—a New York CPA firm specializing in startup accounting and finance—who might need a fractional CFO and how to find one. He explained that a Chief Financial Officer (CFO) can bring a lot to the table, like experience and industry expertise, but the price tag can be financially difficult for some businesses to carry on a long-term basis. He says that a fractional CFO may be the solution. (Paywall, subscription required.)

Deciding when to hire a CFO for your venture capital-backed business depends on various factors, including the stage of your company, your growth trajectory, and your specific business needs. Here are some indicators that it might be the right time to bring a CFO on board: Preparing for Funding: As you prepare for a significant funding round, such as a Series A or Series B, hiring a CFO can be advantageous. A CFO can help you develop financial projections, prepare investor materials, and navigate the due diligence process more effectively. Scaling Operations: If your company is experiencing rapid growth and scaling operations, a CFO can provide strategic financial leadership to support your expansion plans. Complex Financial Needs: As your business becomes more complex, with multiple revenue streams, international operations, or intricate financial transactions, a CFO's expertise becomes essential. They can help navigate complexities such as tax implications, regulatory compliance, and financial reporting requirements. Strategic Decision-Making: If you find yourself making significant strategic decisions that have long-term financial implications, having a CFO at the table can be invaluable. They can provide financial analysis, scenario modeling, and strategic insights to support decision-making and maximize value creation. Investor Expectations: If your investors are expecting more sophisticated financial reporting, analysis, and governance as the company matures, it may be time to hire a CFO. A CFO can ensure that your financial reporting meets investor expectations and provides transparency and credibility to stakeholders. Preparing for an Exit: If you're considering an exit strategy such as an acquisition or IPO in the near future, hiring a CFO well in advance can help ensure that your financial house is in order and that you're well-prepared for the process. Managing Risks: As your business grows, so do the financial risks. A CFO can help identify and mitigate risks related to cash flow, regulatory compliance, financial fraud, and other areas, protecting the company's financial health and reputation. Professionalizing the Finance Function: As your company matures, having a CFO in place can professionalize the finance function and elevate the company's financial management capabilities. They'll establish financial policies and procedures, implement best practices, and hopefully build a high-performing finance team. Personal Bandwidth: If the founder or CEO, finds themselves stretched trying to manage all aspects of the company's finances while also focusing on other strategic priorities, hiring a CFO can provide much-needed support and expertise, allowing you to delegate financial responsibilities and focus on driving the company's overall growth and success. Ultimately, the decision to hire a CFO should be based on an assessment of your company's specific needs, growth stage, and strategic objectives.

2/3 Benefits of Hiring Virtual CFO for Start-ups and MSME Enterprises Accurate Budgeting & Accounting: A strong and well-planned Budgeting ensures the company maintains healthy profit. Virtual CFO also assists in determining the amount of money required by combining the salary and the cost. Improve Profitability: Virtual CFO services analyze your resources and save your company from any sort of wastage. A well-planned and executed strategy boosts the overall productivity of the business. Decision Making: Virtual CFO also helps in the decision-making process of the company which ultimately leads to business growth. It analyses the finances and operations of the company by using the identification of key operational indicators. Risk Assessment: Virtual CFO recognizes potential risks and provides solutions to curb the level of risk which may influence business over the long haul and improve opportunities. Success Focused: Virtual CFO keeps a constant eye on the current market and financial condition and works continuously on a success-based model. The virtual CFO frequently tracks and evaluates factors such as production, distribution, sales, cash flow, distribution, and inventory levels which show the KPIs. Growth Strategy Mentor: The virtual CFO evaluates the business and suggests growth strategy/planning. The virtual CFO creates a suitable improvement plan, market strategy, and advanced idea in order to recognize when financing is required in the business. Access to investors: Virtual CFO also helps in the decision-making process and looking to relevant options of investors for the organization which ultimately leads to the growth of the business. Help in valuations: Business Valuations of Assets, Liabilities, and securities recognize the market equity value instruments, debt instruments, and derivatives issued by government agencies, financial institutions, and corporate organizations. Organizational Hierarchy Structure: Virtual CFO services have the power to make any changes in the organizational hierarchical structure of the company as and when needed for business growth.

🌟 The Rise of CFOs as Strategic Leaders 🌟 As the Director of Innovation, I am thrilled to share with you the evolving role of Chief Financial Officers (CFOs) and the exciting opportunities they have in shaping the future of organizations. 💼💡 Gone are the days when CFOs were solely focused on financial reports and metrics. Today, they are strategic partners, actively involved in critical business decisions and driving growth and sustainability. 📈🌱 CFOs are now viewed as more than just finance executives; they are key players in shaping company strategy, governance, and digital transformation. [2] [1] Their expertise in cost structure, fundraising, and digital initiatives is becoming crucial in driving business growth and ensuring long-term success. 💰💻 In fact, CFOs are increasingly being considered for the top job of CEO, particularly in sectors like private equity and startups. Their unique skill set and experience in strategic partnerships and digital transformation make them well-positioned to lead organizations into the future. 🚀🌍 To thrive in this new era, CFOs need to develop a diverse set of skills. They must be digitally savvy and attuned to the latest advancements in financial technology (FinTech), artificial intelligence (AI), and automation. Staying updated with these advancements is crucial for optimizing financial operations and planning for business growth. 📊🤖 Data analysis and proficiency in emerging financial tools are also essential skills for CFOs. They need to interpret complex data, uncover growth opportunities, and anticipate financial risks to make informed decisions. Automation and digital transformation are reshaping the role of CFOs, and they must guide their companies through these changes to ensure operational efficiency and financial soundness. 📈💡 Furthermore, mastering FinTech is crucial for CFOs to thrive in the digital age. It allows them to streamline financial processes, cut costs, boost revenues, manage risks, and ensure regulatory compliance. Effective communication and negotiation skills are also vital for CFOs to translate complex financial data into actionable insights and secure continued investment. 💻💼 As the role of CFO continues to evolve, it is clear that they will play an even more significant role in the future. By embracing change, becoming strategic changemakers, and leading the way in driving organizational growth and sustainability, CFOs can shape a lasting legacy that fosters positive change on a global scale. 🌍✨ Let's celebrate the rise of CFOs as strategic leaders and support their journey towards a future of innovation and success! Share your thoughts and experiences in the comments below. 👇 #CFOs #Leadership #DigitalTransformation #Innovation #Finance #FutureReady References: [1] CFOs move into the line of succession for the top job: https://lnkd.in/dPwa7qTg [2] Responsibilities of the modern CFO: The impact of automation: https://lnkd.in/dib4ADNq

Not all CFOs are created equal. Here are some of the archetypical CFOs I see in the market: 🚩 The CFO In Name Only - With all the title inflation that goes on in early stage ventures, it's unsurprising that lots of people with, sadly, very little experience have been given a CFO designation on the basis of having an accounting qualification. NGMI. 🧮 The Bean Counter - This is the more traditional image of the CFO, someone that sits in their office scrutinising every penny, pound, cent or dollar spent in the business. Unfortunately this is a bit of a myopic way to do the job but it takes all sorts. 🏦 The Finance Bro - Often seen in the wild in the US, these are folk that have come out of a banking background, they're normally pretty good with the capital side of things, but haven't had experience operating, nor do they have (necessarily) a good understanding of more traditional accounting and finance. 🤓 The GAAP Meister - This person has come from a more technical background, probably in one of the Big 4 accounting practices, they can quote IFRS like it's going out of style but, again, tend to lack the nuance and understanding needed to build a business. 💻 The Techie CFO - These are some of the newer breed of CFOs who think that tech is the solution to every problem in the business, you'll turn around and suddenly find your SaaS spend has blown up and you are receiving 30 reports from 15 different systems. 📊 The Excel Guru - Unlike the techie CFO, these folk believe that one more spreadsheet is going to solve all the problems. They'll wow you with their knowledge of index, match, match and VBA but you'll find yourself drowning in a never ending morasse of version controlled spreadhseets (never a Google Sheet on pain of death). 🔥 The EmergeOne CFO - (Naturally!) these CFOs get that you need a pinch of all of these elements to really provide value to a startup. They know when to implement a tech solution, but also when a spreadsheet will do. They aren't the new kids on the block, they've been working in venture backed tech businesses for years, building on experience they may have already gained in practice or banking. They are the ultimate generalist CXOs that understand when it's time to manage burn and granularly track cash flow, and when it's time to put the foot on the accelerator and lean into scale. They get how capital works, how to raise it and how to manage it, but they also know their revenue from their GMV. Which CFO would you rather have in your corner 😉 #Startups #CFOInsights #VentureCapital #finance #founder #business #cfoservices

What Is a Virtual CFO, and Do You Need One? Startups and scale-ups often struggle with the financial complexities that come with growth. But what if you could access top-tier financial expertise without the cost of hiring full-time? A Virtual CFO provides just that—strategic financial oversight tailored to your business’s unique needs. From optimising cash flow to supporting strategic planning, a Virtual CFO helps you focus on scaling your business while positioning you for long-term success. In our latest article, discover how a Virtual CFO can benefit your business with: 💡 Expert Financial Strategy: Gain critical insights without the overhead of a full-time CFO. ⚖️ Tailored Solutions: Receive financial guidance that evolves with your business. 🌏 Local Expertise: Navigate the Australian market with confidence. 📊 Leverage the Latest Technology: Stay ahead with cutting-edge tools for real-time financial visibility and smarter decisions. 🚀 Focus on Growth: Free up your time to drive business expansion while your Virtual CFO ensures financial health. 💼 Capital-Ready: Set your business up for success when raising capital with detailed financial insights and preparation. Find out if a Virtual CFO is the right move for your startup or scale-up. 👉 Read more in our article: https://lnkd.in/e7gHqpCb