What is a Fractional CFO?
Financial guidance is an important resource for any organization, but what exactly is a Fractional CFO? How are they different from an ordinary bookkeeper or CPA?
Many Hats All Rolled Into One!
As a SMB (small and mid-size business) owner, you typically have someone doing your books and someone doing your taxes. But who’s helping build a budget for the business? Who’s managing the cash flow, providing financial strategy or giving advice on staffing, pricing, and investment decisions? Most SMB’s can’t justify paying for a full-time CFO (Chief Financial Officer), so they contract with a Fractional CFO who can provide a fraction of their time for a fraction of the cost. This fraction of time is typically all that’s needed to accomplish these tasks and help SMB’s succeed financially.
How We Help
To understand the work a Fractional CFO firm like RCFO does for SMB’s, we first need to understand the three primary functions that make up the financial management of a business:
Accounting
The Accounting function is responsible for maintaining the books, paying bills, managing receipts/collections, generating accurate month-end statements, and sometimes processing payroll. This role is typically accomplished through Bookkeepers, Admins, Accountants, CPA forms, and/or PEO (professional employer organization) firms.
Tax
The Tax function is responsible for preparing and filing taxes, estimating quarterly tax payments, and providing tax savings strategies. This role is typically accomplished through Tax Accountants, CPA’s, or EA’s (Enrolled Agents).
FP&A (Financial Planning & Analysis)
The FP&A function analyzes financial data to provide recommendations that improve profitability and cash flow, reduce debt, or leverage debt for financial investment in the operations of the business. FP&A is also the function that builds budgets, financial projections/forecasts, and other financial models. This role is typically accomplished through Business Financial Analysts, Budget Analysts, FP&A Leaders, or CFO’s.
The ReynoldsCFO Difference
At Reynolds CFO Services, we combine roles from Accounting and FP&A functions to provide business strategy recommendations based on accurate bookkeeping that improves the financial health of the organization. We also work with CPA’s and Bankers to ensure tax strategy and banking decisions are part of the overall financial strategy for your business.
Why Hire a Fractional CFO
Personalized Guidance
Streamlined Bookkeeping
Cost-Effective Solutions
Changing How Businesses Interact With Their Finances
Nobody started their business because they’re good at accounting. They start with a dream, a passion, a service that they can provide better than anyone else. But businesses live and die by their numbers. Rather than working in spite of the state of your finances, you should be able to work with your finances. Partnering with RCFO will allow you to prioritize your work, while still understanding the financial tracking that keeps your operation running.