We consider Fractional CFO part of our FaaS (Finance as as Service) and AaaS (Accounting as a Service) program, our cloud based approach to outsourced accounting. Normally outsourced accounting focuses on legacy systems like accounts receivable and accountants payable, our Fractional CFO focuses on developing the metrics you need to run your business. While MBAs have made the term “KPI” or Key Performance Indicator popular, managerial accounting dates back to the 19th Century, and forms the basis of the modern KPI Method.
But fractional CFO services is about getting your KPIs – Key Performance Indicators – out of your financial and other business data to make better decisions. We all hit a point in our business growth where we can no longer keep track of it by looking at our bank account and doing the math in our head, and bringing a serious senior manager in on a part-time basis can be critical.
Outsourced accounting services is generally just focused on bookkeeping, compliance, and keeping track of your business. It’s a cost center to your business, but it’s more cost effective than having it screwed up during the year then redone by your accountant, so it saves you money. It also helps you spread your accounting costs out across the year instead of getting tacked on to your tax preparation bill. When you find a consultant advertising as a contract CFO, their proposal won’t include the costs of your accounting services, leading to sticker shock as you get control of your finances.
But if you want to have regularly updated charts showing your business growth over time, visuals to help you identify when costs are growing faster than revenue, or need someone to reality check your business based on industry benchmarks, you’ve hit the point of needing Fractional CFO Services.