Why a Fractional CFO?
What makes a CFO different from an Accountant or a CPA?
While Accountants and CPAs are incredibly important to business, they do not contribute the same resources that a Fractional CFO can.
Chief Financial Officer (CFO)
- Comprehensive margin analysis
- Effective financial analysis and KPIs
- Credible forecasting
- Meaningful one-year financial planning
- Prudent long-term financial planning
- Practical scenario analyses
- Influencing lender and/or investor financing
- Contributing to pricing strategies
- Designing performance-based compensation
- Supporting staffing decisions
- Providing input to contract negotiations
- Recommending practical internal controls
- Assess/recommend accounting systems
- Enhance employee benefit cost management
- Mentor/coach Controllers
- Drive business value
- Impact preparing for and executing transition
- Ensure financial information is meaningful
Controller (Accountants)
- Prepare standard financial statements
- May/may not know GAAP requirements
- Perform monthly accounting close process
- Perform bank reconciliations
- Perform payroll processing
- Perform Accounts Payable processes
- Perform Accounts Receivable processes
- Perform other account reconciliations
- Perform sales tax reporting
- Support independent CPA requests
- Prepare borrowing base schedules
- Perform simple forecasts
- Support basic accounting system matters
- Might recommend basic internal controls
Independent CPA
- Prepare tax filings
- Recommend tax strategies
- Perform Compilations (if required)
- Perform Audit/Review report (if required)
- Provide limited strategic financial advice