Many small business owners engage bookkeepers to handle monthly accounting tasks, or they do this themselves.  As your company grows, you should consider moving beyond basic bookkeeping services to include engaging a Fractional CFO.

Executive Summary – What is a Fractional CFO?
A fractional (or outsourced) Chief Financial Officer is a solution that brings deep financial planning and analysis expertise to your team, at a fraction of the cost of an in-house employee.  The fractional CFO acts as your CFO, taking the output provided by the bookkeeper, accountant, or CPA professional, and reading the “tea leaves”, that is; translating what the numbers are telling us about your business and providing sound business advice.

As a trusted business partner and now part of your team, the CFO will help you set budgets, evaluate results, and help you with strategic planning.  In addition, the tax efficiency of your business is evaluated, and your personal financial plan is addressed.

The Fractional CFO is your senior advisor on call, looking at many aspects of your business outside of the debits and credits.  The ability to only “pay for what you use” creates an opportunity for many businesses to avail themselves of this level of advice that was previously out of reach.

The Specifics – What does the Fractional CFO do?
Fractional CFOs provide guidance in the following areas, as required (and as you desire):
– Financial review and accounting best practices.

  • Reviews of accounts receivable and accounts payable
    • setting timing and frequency of reviews
  • Cash flow forecasting
  • Setting Budgets
  • Strategic Planning (long term goals)
  • Periodic reviews of results (i.e.: monthly or quarterly) and Strategic guidance

– Tax efficiency

  • Identifying techniques to lower your tax burden while investing in your business and yourself. (Partner advisors may be engaged, as necessary)

– Personal Financial Planning

  • Ensuring the business owner is focused on their personal plan, as well as their business’. (Partner advisors are engaged, as necessary)

– Business Protection

  • Legal Entity review
  • Review insurances coverage
  • Payroll and sales tax payment procedures
  • Company registration and licensing

– Readiness for Venture Capital

  • normalization of earnings
  • policies & procedures:
    • Accounting
    • Travel (T&E)
    • HR

– Considerations for multi-entity and international operations:

  • transfer pricing
  • intercompany accounts
  • consolidation concerns

Big Picture Results advises clients that engaging a Fractional CFO is an investment – yielding benefits that far exceed the additional outlay.  The inclusion of one-on-one business reviews, tax guidance and personal financial planning exemplifies how Big Picture Results goes beyond basic bookkeeping with this offering. For additional information, contact Jessica Zoraida.