Trying to grow into the middle market? Many business owners make the mistake of giving the “CFO” title to the overworked, under-equipped accounting manager. When a loyal, affordable accounting manager who lacks the ability to forecast future performance and resource requirements is made the CFO you might see these warning signs.
1. Closings are consistently late and you don’t know why.
2. Your bank covenants are never on time and you have a hard time getting funding.
3. Your business valuation is below average for your market.
4. Your repeatedly have unexpected cash shortages.
5. You don’t really understand your financial statements.
6. You don’t know what results to expect in the next 6-12 months.
Employers with less than $10MM revenue who want to triple revenues should get high-level, strategic CFO guidance, even if part time. The right CFO talent will pay for the added salary cost many times over.
The Fractional CFO
The most cost-efficient way for many medium sized businesses to grow into the middle market is to deploy a top talent CFO on a part-time basis.
How do you know when you’ve chosen the right fractional CFO?
The first way you know is that the six warning signs disappear.
The other way you know is when you say to your fractional CFO: “Ever since you came onboard, I know more about my business than I ever did!”
When to Hire a Full Time CFO