Greg Falkner

WHEN TO HIRE A FRACTIONAL CFO? As businesses evolve, the complexity of their financial management escalates. How do you strategically align your financial team's capabilities with your company's growth trajectory? It's crucial to understand your company's current phase and ensure your finance strategy is not just prepared to react but is positioned to anticipate and propel your business forward. Here's a simple guide to evolve your finance team as your business grows: Stage 1 - Start with the Basics: Initially, the focus is on foundational financial management. A Bookkeeper to handle daily transactions and an Accountant for compliance and tax obligations lay the groundwork for financial stability. Stage 2 - Growth: As the business gains momentum, it's crucial to deepen financial analysis. Introducing a Financial Analyst provides insights into trends and future growth, while a Controller ensures robust financial operations and reporting. This combination facilitates strategic financial planning, keeping the company's growth trajectory on course. Stage 3 - Expansion: Facing new opportunities demands a strategic pivot. Rather than immediately hiring a full-time CFO, the smarter move is to bring in a Fractional CFO. This role offers high-level financial strategy and oversight, perfectly scaled to your business's needs. It's an efficient way to manage complex financial challenges without the full commitment to a permanent executive position. Stage 4 - Maturity: Once the company has established itself in the market, it's time to solidify the finance department's leadership with a full-time CFO, and potentially a VP of Finance. They will navigate the financial strategy as the company explores new ventures and market expansions. This strategic approach ensures that your finance team's evolution is perfectly synchronized with your company's growth, balancing the need for financial expertise with cost considerations at every stage. Any other thoughts?

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Sacrifice your cash flow in the short term, or sacrifice it in the long term? As a fractional CFO, this problem comes up more often than I’d like. 😕 I don’t love the question, because there is almost always a third option. You can often work around cash flow issues, to preserve short term cash flow while still helping long term growth. One of my clients– a manufacturing company– was in a situation where they needed to make an equipment purchase to take on new customers. They couldn’t make that purchase without putting short term cash flow at risk. ⚠️ So, why not use a loan to spread the cost over time? In this situation, asset financing made the most sense. 👉 The company already owned machinery worth a lot of $$$ to use as collateral 👉 It allowed them to get an influx of cash right away 👉 But it had manageable fixed payments, which could easily be paid once they took on the new customers No matter what your level of financial literacy is, remember those third options when you’re navigating cash flow problems. Don’t settle for bad cash flow when it could be the death of your business! #cashflow #smallbusiness #SMES

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A post on economic confidence in 2024... It's hard to believe we are more than 1/3rd of the way through 2024 but given how far along we are in the year, I am thinking about my own confidence and that of my CFO Peers. 😅 4 months into the year, as a CFO you know that your 2024 forecast was either right, wrong, or "wrong, but wrong in the "right" direction" (#IYKYK) and that is deterimining how you spend the next few months.... 👍 It's nice to see overall CFO Confidence is up. Two consistent CFO tracking surveys I follow are from Grant Thornton LLP (US) and StrategicCFO360 both links I will put in the comments. Key Takeaways: From US Based CFOs Confidence is up 12% from Q4 2023 and is the highest its been since late 2021. It's also interesting to see from these reports that CFOs started waning on confidence before the rest of the market (early 2021) which bodes well to the CFO leading indicator of the economic recovery as well. 🤝 CEO Confidence is also an important tracker and even better when CEOs and CFOs are feeling the same thing. The Conference Board does a consistent survey here on CEO confidence. Q1 2024 saw a large decrease in concerns on recessions a real step-change for CEOs in this imporant economic metric that had seen only marginal change throughout 2023. Budget and investment decisions are made jointly between CEO and CFO so nice to see allignment across these tracking surveys. 💲 Lastly, since Tipalti helps 4000+ global companies manage their Payables we have a clear and large ($60B+ Annualized) view into spending insights. The 'read through' on those spending habits is in renewed investments to spend in all areas whether that is in Marketing for growth, Software & AI infrastructure, and in many other areas. Looking back decades, the #1 driver of shareholder returns has always been growth. It's nice to see some positive news in the confidence leaders have which should translate into more business investment and growth as the year moves on. - 📈 Hi, I'm Sarah, CFO at Tipalti 🔔 Connecting with other Finance leaders is a passion of mine.  Follow me here: Sarah Spoja

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Can I become a fractional CFO if my main background is working as a CPA in a firm? Yes, but.... All CPAs are not created equal. If you are at a partner level, you probably interact with ownership of the company – and are the person they sit down with to have conversations about strategic or important business issues (or problems). In that case, I think you can make the transition If you are an auditor, manager, senior, etc., I’ve seen a bunch of folks like you make the transition to controller for a company. Depending on the projects and clients you work on, you may or may not be ready to be a fractional CFO. If you work in CAS or a specialized department like M & A support, I think you can make the transition to a fractional CFO, but I would recommend you focus on a niche where you are comfortable and knowledgeable in, based on your client-facing experience. Here are some other paths to consider: 1. Start as a fractional controller within a fractional CFO firm and let them mentor you as a fractional CFO. 2. Start as a fractional controller on your own, and as you earn the trust of your clients, they will ask you to expand into other areas typically performed by CFOs 3. Take a class on being a CFO from someone like The CFO Leadership Council, GrowCFO or Andy Burrows I am not a CPA but many, many fractional CFOs are. So if you have one, that is a great foundation on which to build toward being a fractional CFO.

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Ted Belinky This is an interesting observation, and not entirely new, but certainly gaining traction. CFOs are facing increasing pressure to be more strategic and less operational. Augmentation is a smart way for companies to bridge the gap without a disruptive and costly replacement. However, success hinges on the existing CFO's willingness to embrace change and collaborate. This requires a certain level of self-awareness and humility. It'll be interesting to see how this trend impacts the CFO role long term.

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CFO Role from perspective of CEO and CFO I asked a question “What is the key role of CFO” to CEOs and the same question was asked to CFOs. Responses were different. What may the reason? -         Different understanding of CEOs and CFOs? -         CEOs could not set the expectations with CFO? -         CFOs could not appreciate expectations of CEOs -         Anything else? For question “What is key role of CFO”, following role were given as options: 1.     Compliance 2.     Optimum Fund Management 3.     Financial Innovation 4.     Effective Program Support When we see CEOs’ response, “Optimum Fund Management” was voted as top priority (47%) while “Compliance” and “Financial Innovation” were voted jointly as second priority (21% each). When we see CFOs’ response, “Compliance” was voted as top priority (40%) while “Optimum Fund Management” was voted as second priority (25%) and “Effective Program Support” was voted as third priority (24%). “Financial Innovation” which was voted as second priority by CEOs was voted as last priority (11%) by CFO.  Similarly, “Effective Program Support”, which voted by CFOs as third priority (24%) was voted by CEOs as last priority (11%). CEOs and CFOs need to reconcile their priorities. CFOs need to understand CEOs’ perspective, aspirations, and the support they require from CFOs. CFOs may also need to orient CEOs on importance of compliance. On the other hand, CEOs should share their expectations clearly with CFOs so that CFOs could play their role effectively. This is important that both CEO and CFO understand and appreciate each other’s position and CFO’s priorities are set jointly. #CFO #CEO #management #organisationaldevelopment #professionaldevelopment

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This quote really speaks to what we're building at Plaid Analytics: -- The budget officer says the changes made to the budget model is to ensure the balance is maintained. “These include moving to multi-year budget planning and switching from annual to quarterly forecasting to ensure we have the most accurate and timely data to aid decision-making and reporting,” he said. -- Plaid Forecast helps you predict enrolment 5 years into the future (or more, or less - your choice), on a term by term / quarter by quarter basis, in granular detail be program, year level, national status. This helps you better predict your tuition revenue and course correct before major cuts are necessary. Could your planning use a lift? Let's chat.

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What is OAAD? Nope, it's not me meditating. It's Outcome, Actions, Answers, and Deliver. Four powerful words that will help any CFO and their team become more data-driven. #businessintelligence #dataanalytics #accountantsandaccounting

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📢 MSPs, listen up 📢 Accountants should be managing your company’s finances, not completing circular tasks. For instance, TAZ Networks, Inc.’s accountant was burning time: 1) Chasing past-due payments 2) Sending invoices to clients Their solution? FlexPoint So far, the partnership has yielded results like: → 4x reduction in AR aging → 30% decrease in time spent invoicing

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🌅 Starting My Day with Purpose 🌅 In a recent conversation with CFO.com The 6AM CFO, I share a glimpse into how I structure my day. From my morning routine and lessons of resiliency, my journey is not just about building Fresh FP&A but building an impactful life. These three key takeaways conceptualize what I have learned to prioritize in my time: 1️⃣ Structured Daily Routine: I find that starting my day with a routine and ending my day with things I love, like hitting the gym, really helps me stay focused productive all day long. 2️⃣ Role of Passion: Working out isn't just good for my body, it helps me crush it at work too! 3️⃣ Influence of Family Background: I want to reflect on the profound impact my mother's sacrifices have had on me. She has instilled in me a strong work ethic and a deep sense of what truly matters. Join me in exploring how disciplined routines and personal passions can significantly shape our professional and personal growth! Read the full article here 👉: https://lnkd.in/gDEgcyhe #cfo #freshfpa #fractionalcfo #finance #insights #financeleaders #professionalgrowth #fpa #fpanda #business #virtualcfo #business #leadership #relationships #learning #knowledge #freshcfo

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Do you know the difference in hiring a Fractional CFO vs Accounting tasks? It's Strategy & Leadership. There can be cross over between a Controller and CFO, but in outsourced CFO services, you are implementing the value of strategy into your organization. This article on "What are CFO services?" explains strategy. **Strategy: Accurate and timely financial information - along with practical interpretation and guidance on how best to leverage it - is invaluable in driving strategy formulation and evolution. Without it, you're shooting from the hip. You have too much riding on your strategy to not inform its development with sound data. You can't know where you are going without knowing where you have been. And knowing where you have been and how you got to where you are now, also creates a guidepost for how you can get to where you want to go next. In other words, your financials and financial leadership should tell you - on a segmented basis - what has succeeded, what has failed and also help you use that information to develop and refine your strategy. https://lnkd.in/gqdnvNeA #leadership #nonprofits #strategy

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What are the benefits of having a CFO??? As a CFO I’ve worn many hats to achieve company wide goals, short term and long term. Let’s discuss a a handful of major benefits of having a CFO whether you are a small, medium or large sized firm. 1. Better Financial Planning: With their expertise in finance, CFOS can help develop long-term financial goals and strategies that align with the overall business goals. 2. Improved Decision Making: A CFO provides management with valuable insights on how different decisions could impact the bottom line. This helps them make informed decisions that lead to better results. 3. Efficient Resource Management: A CFO ensures efficient allocation of resources by identifying areas where cost-cutting measures could be implemented without compromising productivity. 4. Compliance with Regulations: CFOS stay up-to-date on tax laws and regulations to ensure compliance while minimizing any legal risks for your business. 5. Increased Investor Confidence: Hiring a full-time CFO shows investors that you take finances seriously, which increases investor confidence in your company’s future potential. In summary, having a skilled and experienced CFO can provide numerous benefits to businesses from better planning to increased investor confidence- all helping drive success over time!

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Am I a 'Grow CFO' or a 'No CFO'? Nearly every time I open LinkedIn, I'm met with this question. It's catchy, but far too simple. A CFO's role isn't just about saying yes to growth or no to spending. It's about guiding the organization towards the right opportunities—those that align with the vision of stakeholders and steering clear of those that don't. We do more than manage finances; we navigate through complex strategic decisions, accelerate progress when it suits the organization's goals, and put the brakes on anything that distracts from the path. Our real job? To push the company forward at the right speed, making sure every move supports the long-term objectives. The role of a CFO is dynamic and crucial—it's about leading with precision, not just choosing between growth and constraint.

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Reason to Hire an Interim FP&A Director: New CFO Needed Investor-Grade Management Information Management information (MI), both financial and commercial, is essential for any business, enabling operational leaders to make well-informed decisions. Additionally, robust MI can protect against activist investors. A recent example highlights this need: A newly appointed CFO of a growing healthcare business reached out to me through a network contact. The company lacked adequate management information, necessitating the introduction of an experienced Interim FP&A Director. This interim professional was tasked with building a comprehensive MI framework and integrating finance into the business to support operational leadership effectively. #ceo #leadership #business #entrepreneur #management #strategy #innovation #startup #executive #success #finance #founder #businessowner #corporate #visionary #strategicplanning #businessmindset #leadershipdevelopment #businessgrowth #ceolife #interimcfo #interimFD #privateequity #venturecapital

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My fractional CFO service is designed to provide small and medium-sized businesses with access to high-level financial expertise without the cost of hiring a full-time CFO. Here are some key benefits you can expect: 1.⁠ ⁠Expert Financial Insight: I have a wealth of experience and can provide valuable insights into your company's financial health. I can analyse your financial statements, identify areas for improvement, and help develop strategies to maximise profitability. 2.⁠ ⁠Strategic Financial Planning: Assist in creating a comprehensive financial plan tailored to your business goals. I can help with budgeting, forecasting, and financial modelling to ensure your company is on track for success. 3.⁠ ⁠Cash Flow Management: Cash flow is crucial for business survival and growth. I can help you understand and manage your cash flow effectively, ensuring that you have the necessary funds to cover expenses, invest in growth opportunities, and meet financial obligations. 4.⁠ ⁠Cost Optimisation: I will review your company's expenses and identify areas where costs can be reduced or optimised. This can help improve profitability and ensure that you're making the most of your resources. 5.⁠ ⁠Financial Reporting and Analysis: Accurate and timely financial reporting is essential for decision-making. I can help establish robust financial reporting systems and provide analysis to support informed business decisions. 6. Funding. I have a great network of finance providers so can suggest funding methods suitable for your business to either manage a cashflow challenge or to provide capital for future growth. To take advantage of our free consultation me, simply reach out to us and schedule a meeting. I will assess your business needs and provide tailored advice and recommendations to help you achieve your financial goals. Don't miss this opportunity to gain valuable financial expertise for your business at no cost!   ⁠#FinancialManagement #FinancialStrategy⁠ #BusinessConsulting #CFOconsulting #FinancialPlanning #BusinessFinance #WestMidlandsCFO

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Over the last 10+ years, I've lead FP&A at both large public and small private software businesses. The biggest operating difference? Focus on cash management. In nearly 7 years scaling a $500M+ public company we almost never looked at cash burn. At least not with a rigor I can remember. Why? We had plenty of it. We're talking hundreds of millions just sitting there in the bank. Our focus was top-line growth and generating cash. Not preserving it. How often did we look at cash burn in 4 years building a private software business? Every. Single. Day. Cash was a lifeline and we depended on every dollar. Your circumstances will dictate your focus. But it doesn't need to be complicated. - bank balance - money in - money out From here you can calculate your burn rate and runway. If you're an early stage business, how often are you looking at your cash?

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Taking your new investment to the next level can be jump-started by bringing in an interim CFO post-transaction to help with both tactical and strategic issues as set forth by SeatonHill partner, Gayle Anderson in the attached article. Gayle covers the balance between the CFO proceeding diplomatically while not being afraid to "break some glass" along the way. This is a quick read loaded with great suggestions on how bringing in the right talent can accelerate the integration process.

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