What is a Fractional CFO & What the Hell Do They Even Do?

A black letter board with teal letters reads "WHAT IN THE ACTUAL HELL?" against a yellow background.

When businesses need more financial guidance than a bookkeeper or an accountant, they hire a fractional CFO, like me. I help companies focus on what’s crucial to their finances by simplifying what they look at.

I call it “forward-thinking finances without the BS.

But let’s be clear — I’m an outsourced CFO, not a magician, salesperson, or your mother. I can’t drive more revenue, and I can’t get you to stop spending, but there’s a lot I can do for your business if you are willing.

Okay. So, What is a Fractional CFO?

A much more affordable and accessible chief financial officer. I do everything a traditional CFO does but at a fraction of the cost. That’s why it’s called fractional. I help business owners like you identify what drives the most revenue, tell you where you’re spending too much, and identify a framework for how you should think about spending.

Great. Now, What the Hell Do They Do?

As a business owner, you need to understand your finances. You don’t need to know all the dumb acronyms that people say to sound smart. You need to know about your business. Money in, money out — what drives revenue and what’s sucking away your time.

As a fractional CFO, I simplify everything so you can actually understand your finances. No, really, I help you navigate your finances and make them more accessible.

And once you understand those finances? You’ll be in a position to make better decisions for your business, unclogging bottlenecks and overcoming what were once financial challenges.

It’s my job to make sure you’re better informed to make those decisions.

Here are a few examples of how I help you do this:

I’ll Identify Gaps With Cash Flow Forecasting

Did you know profits often mask dangerously weak processes? Yup. You may think you’re pulling in stellar margins, but have you really analyzed the numbers? People lie. Often to themselves. But you can always count on numbers to tell the truth.

Scratch beneath the surface and you may discover that specific clients are pulling in margins much lower than others, or that you’re bleeding resources selling certain products and services.

Being a fractional CFO, I can dive into that sea of numbers and give your business a brutally honest cash flow forecast. It will keep you from basing critical decisions on poor or assumptive information and ensure your business reaches its true potential.

You’ll Get an Enlightening Order to Cash Audit

You won’t just understand your cash flow better, but you’ll also get a crystal-clear picture of your operations.

An order-to-cash audit is a long hard look at your order processing system in an effort to identify weaknesses and gaps. And, yes, there are always ways to improve it.

For instance, with greater insight into your invoicing system and inventory management from the audit, you can optimize your payment collections.

Need an example?

Imagine your business outsources graphic design to sell a specific service to your clients. Understanding how long it will take for the client to pay you will in turn help you manage your own resources to pay your freelancers.

I’ll Identify How to Reduce Your Operations Expenses

Understanding how much money you’re paying for your business to simply exist is crucial for driving your sales functions.

Think about it. The more clarity you have around your operational expenses, the easier it will be to make smart financial decisions that drive profit. How? Buried in those numbers are all the unnecessary expenses eating away at your bottom line.

Case in point, how often have you simply smashed the “renew” button on your insurance plan without giving it a second thought or the due diligence it deserves?

Insurance requirements change, as do the needs of your company. So make sure to review those plans with your agent. Unless, of course, you like paying for things that haven’t applied to the business since the mid-2010s.

3 Things You Can Expect Me NOT to Do

Fractional CFOs are great, I know — I’m one of them. But even though you could call me a Swiss Army knife of financial strategies and advice, a line has to be drawn in the sand somewhere. And, there’s no better way to further explain what an outsourced chief financial officer does, than by bluntly telling you what they’re not.

1. I Will Not Be Your Investment Advisor

Let me say it a different way, I’m nobody’s stockbroker. If you’re looking to manage your securities, then get yourself an investment advisor. But that’s not at all what CFOs do, and I’m certainly not going to help you decide if Doge Coin is a safe bet.

From stocks to crypto, I don’t advise business owners on securities or commodities.

2. I Am Not a Glorified Bookkeeper

Don’t get me wrong, they have their place — they’re number geeks like me and I love them for it. But, a bookkeeper ensures accurate financial records while also handling accounting transactions. They don’t analyze past performance to forecast your financial future as a fractional CFO can.

Bookkeepers are very task oriented — they handle the day-to-day accounting.

Me? I’m a strategist.

3. No, a Fractional CFO and a CPA Are Not the Same Things

Let me spell it out. A certified public accountant is an auditor. They scrutinize your taxes and have the skillset your business needs to — you guessed it — audit and inspect your financial records and prepare all those pesky tax reports.

Sorry, but I’m just not a tax girl.

As a fractional chief financial officer, my focus is to ensure your business is performing as optimally as possible and accelerate your financial growth.

What Should You Expect Working With a Fractional CFO?

Well, I can’t speak for the others, but with me, you can count on unbiased and actionable insights that are brutally honest, simple to understand, and drives your business financially forward.

As your financial strategist, we’re going to have hard conversations — I’m not going to mince words and sugarcoat your finances. I am going to help you problem-solve. And together? We’ll create a meaningful solution for greater success.

You don’t need to pay a retainer to work with me, either. I’m a Fractional CFO.

If you need an hour, buy an hour. If you want something more in-depth, I can do that too. Every business should have access to great financial advice — contracts shouldn’t get in the way of that.

Connect with me now and see how high your business can soar with the financial guidance from I Heart EBITDA.

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