ORBA's Cloud CFO Services’ Post

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

Not every CFO is a good CFO ... full-time or fractional. Do your homework by checking on previous companies, references, and connections that are not references. A CFO whether full-time or fractional ... is a pivotal hire for an organization that can launch or severely hurt a business. I don't know whether the scandal was this CFO's fault, but it was on his watch. More of a cautionary story to do your diligence when finding a new CFO. #capitisadvisors #fractionalCFO #CFO #smallbusinesses #finance #budgetyourbusinesspodcast

Founders & CEOs: How do you use your CFO? Glorified Bookkeeper or Strategic Mastermind? When my Dad was in business, CFOs were nothing more than Glorified Bookkeepers. They sat in a stuffy back office, preparing finance and tax reports. Most of them didn’t even get the title “CFO” - they were called “financial managers.” Fast forward to today and the CFO has transformed into a praiseworthy superhero (at best) and a blamable villain (at worst). “CFO Role Shifts from Number-Cruncher to Business Leader,” said one TechCrunch article in 2015 What caused the huge shift? Regulation. The watershed moment came in 1976 when the SEC issued Accounting Series Release #190, requiring thousands of large public companies to follow new accounting rules in their 10-K filings. CEOs asked their financial managers to do more than budgeting and (sniffing the opportunity..) they said, why not? Then as massive inflation came in the late 70s and M&A skyrocketed in the 80s - companies needed CFOs more than ever before to improve underperforming business units and revamp growth. Fast forward to today (again) and CFOs are probably the highest ranking C-suite officer in an organization apart from the CEO. They are responsible for essential strategic decisions, capital allocation and so much more. Even profitability falls on their shoulders. 70% of billion-dollar companies have now expanded the role of their CFO to include strategic business analysis according to that same TechCrunch article. It makes sense: financial expertise along with strategic insight is a lethal combination. Founders & CEOs: How do you use your CFO? Glorified Bookkeeper or Strategic Mastermind?

A chief financial officer, or CFO, traditionally serves as leader of all finance and accounting matters within a business organization. In short, the CFO is primarily responsible for the fiscal health of the enterprise. Acting as a close business partner and advisor to the CEO, the CFO ensures that financial decisions align with the overall strategic goals of the organization. You might be surprised that, although accounting is referred to as the language of business, many business leaders do not fully speak and understand that language. So, it’s also the critical role of a CFO to be a great business communicator or storyteller, for the benefit of stakeholders both within and outside of the organization. We’ve found that to be truly effective, a CFO must have a wide variety of skills that include leadership, accounting and finance knowledge, and technical insight – plus they need to be a strategic thinker and implementer. In this week's article, we answer the most common questions we get about the role of CFO, including: • What do they do? • How is the CFO role different from other accounting positions? • Why does a family business need a CFO? • What are fractional CFO services? You can read it here: https://lnkd.in/gmsSjmEq

Considering hiring an outsourced CFO for your business? Unsure where to start or what to expect? My latest article walks you through the process and highlights the benefits of working with an outsourced CFO. Discover how Mercadien can help elevate your financial strategy, contact me today!

Is it time to go all-in with an in-house CFO, or is outsourcing the smarter move? An in-house CFO is a traditional route, but at what cost? Explore the advantages of hiring a fractional CFO and see how they can streamline your business's financial health while keeping costs down: #cfo #fractionalcfo

A chief financial officer, or CFO, traditionally serves as leader of all finance and accounting matters within a business organization. In short, the CFO is primarily responsible for the fiscal health of the enterprise. Acting as a close business partner and advisor to the CEO, the CFO ensures that financial decisions align with the overall strategic goals of the organization. You might be surprised that, although accounting is referred to as the language of business, many business leaders do not fully speak and understand that language. So, it’s also the critical role of a CFO to be a great business communicator or storyteller, for the benefit of stakeholders both within and outside of the organization. We’ve found that to be truly effective, a CFO must have a wide variety of skills that include leadership, accounting and finance knowledge, and technical insight – plus they need to be a strategic thinker and implementer. In this week's article, we answer the most common questions we get about the role of CFO, including: • What do they do? • How is the CFO role different from other accounting positions? • Why does a family business need a CFO? • What are fractional CFO services? You can read it here: https://lnkd.in/gZ7fCEQG

Are you the CFO of a small-to mid-sized enterprise (SME)? Or, if you have spent your career with a large organization, have you ever considered making the transition? Being the CFO of a small business, in my opinion, is one of the most exciting roles available to a finance professional. Transitioning to small business, moreover, is a rite of passage for many finance and accounting executives. I became CFO of a privately-owned small business after starting my career with PwC in Philadelphia followed by many years at Campbell Soup Company. After “growing up” at a large company, becoming the CFO for a small business is quite an adventure. Gone are the layers of management and excess talent. Beginning Day One, you’ll need to roll up your sleeves and put on a variety of new hats. And your CEO and other cross-functional partners will have high expectations. In this CFO article, learn six tips to improve your odds of successfully transitioning into a new small business CFO role. An effective transition starts with conducting pre-hire due diligence and developing a meaningful onboarding plan. It continues by building relationships, fully understanding the current state of affairs, and, often, stabilizing the business (there is a reason they want to hire you, you know). Ultimately, in collaboration with your CEO and other partners, the key to success is developing longer-term strategies and objectives focused on creating sustainable economic value. So, try on that small business CFO hat, you just might like it! IMA Global Small Business Committee, #smallbusinessfinancialmanagement #smallbusinessaccounting #smallbusinessfinance #careertransitions

Consider this required reading for those interested in the big chair with a small company. I echo Steve's thoughts, especially around being fully prepared for the potential challenges that come with a smaller company; pace, systems, measures of success, etc. Ask the hard questions up front and be willing to listen to what you hear. Thank you Steve McNally, CMA, CPA, MBA - another insightful piece!

Andrew Pease has been a CFO of Happy Returns, a UPS Company (sold to PayPal then again to UPS at a premium), Brighter (sold to Cigna-Digital), and Telescope (sold to Bally's). He joins us in the “Q&A” Series with direct and actionable advice on when and why to hire a CFO. 🎤 Do I need a CFO for my seed or Series A? The short answer is no, and please don’t hire one. Any CFO you can afford in early stages probably won’t deliver what your business needs most. Instead, find a very credible and hungry Accounting Manager that can grow with the business to ensure high-quality reporting and build a solid foundation with your P&L/Cash Flow/Balance Sheet. 🎤 But can’t I just outsource my accounting in the early stages? You can, but you will most likely spend a similar amount of money with worse results. Outsource accounting agencies don’t dive into your business daily and help you solve problems. They come in to pay the bills and close the books and often do it sub-optimally because they don’t have full context of the business. If your Accounting Manager is an athlete, they can also help in many areas of the business, including financial planning, running payroll, helping manage facilities, etc. If you need immediate help, I suggest you get a temp full-time resource rather than an outsource agency. 🎤 When do I bring in a CFO? Think of your business like a house. If the foundation and the framing is secure, and you have the capital to continue building the house, it's time to consider a CFO. This generally happens when you A) have product market fit and the product is ready to sell at a high volume, and B) you have raised ~$20M+ or are about to do so. 🎤 What will a seasoned CFO to do for me? The CFO will handle all the basics, including FP&A, controllership and financial systems, treasury, and tax. But the real value comes from their strategic planning, risk assessment and mitigation, future debt and equity raising, and being a partner to all business leaders to drive positive change. Ideally, the CFO can also assist with shared service areas like HR, legal, IT, and facilities. 🎤 What separates a good CFO from a great CFO? It all comes down to the relationship that gets forged between the CEO and the CFO. A great CFO is the CEO’s “consigliere”, the Robert Duvall to Marlon Brando/Al Pacino; a key advisor, someone you can talk with about anything and someone whose opinion you respect. They advise you on how to stay out of trouble and handle tough situations, but can also directly solve problems that may arise. Generally, a strong CFO has a powerful voice in your board meetings, driving your agenda and defending the business results. They should be invested and driven to be your partner in the business. And make sure they are someone that you enjoy having around; you are going to spend a lot of time together.