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Business owners juggle a lot—from managing employees and clients, to operations and strategy. And that’s not even touching on finances! Enter the fractional CFO—a true game-changer for businesses that need expert financial oversight without the full-time commitment.

Keep reading for insights on how a fractional CFO can provide strategic planning, financial reporting, and expert business accounting to elevate your company.

Understanding the Role of a Fractional CFO

A fractional CFO is a part-time financial expert who offers the same top-notch expertise as a full-time CFO but with more flexibility, remote availability, and cost savings. They bring specialized skills and an objective viewpoint, making them a great asset for businesses seeking strong financial management.

Key Responsibilities in Business Accounting

What does a fractional CFO do in terms of accounting? Their role varies depending on the company’s needs, but here are some common responsibilities they handle:

• Financial forecasting and analysis
• Financial strategy development
• Cash flow management
• Risk management and compliance

How a Fractional CFO Enhances the Business Accounting Process

Streamlining Accounting Systems

One of the primary roles of a fractional CFO is to streamline your business’ accounting systems. This involves:

Integrating Efficient Accounting Software: Selecting the perfect accounting software can transform the way you work, making tasks smoother, having fewer errors, and saving time. A fractional CFO can help pick software tailored to your business needs, simplifying financial processes and cutting down manual input. This boosts productivity and allows your team to focus on what they do best.

Improving Data Accuracy & Accessibility: Accurate and accessible financial data is key for making smart decisions and planning strategically. When records are well-kept and easy to find, analyzing trends, forecasting performance, and making informed choices becomes a breeze. It helps avoid costly mistakes and gives a clear view of the company’s financial health. Accessible data lets everyone quickly get the info they need, making operations smoother and communication better.

Improving Financial Reporting: With a fractional CFO on board, they can provide actionable insights and fine-tune processes to ensure accuracy and speed. This means you’ll have a clearer picture of your finances, spot opportunities for growth, and be able to make decisions backed by solid data.

Cost Management and Optimization

Effective cost management is key to maintaining financial health, and a fractional CFO can make a big difference by:

Spotting Cost-Saving Opportunities: A fractional CFO can help identify ways to cut costs without sacrificing quality. They can offer useful insights by analyzing financial data, negotiating better supplier rates, reducing waste, and using technology to automate and reduce labor costs. Regularly checking financial statements and performance metrics can also highlight areas that need improvement.

Implementing Cost-Control Measures: Keeping expenses within budget is key to optimizing financial performance. A fractional CFO can help by creating detailed forecasts, monitoring expenses in real time, educating employees, and setting up clear procedures for expense approvals.

Training and Development

A fractional CFO also plays a crucial role in the development of your in-house team:

Training Internal Accounting Staff: With a fractional CFO, your accounting team receives ongoing, valuable training to enhance their skills and efficiency. They bring a wealth of knowledge to the table and offer ongoing support to help your team excel.

Improving Financial Literacy Across the Company: A Fractional CFO isn’t just about numbers; they can also help everyone understand the financial basics. This could be through regular training sessions, handy newsletters, or interactive workshops to make sure everyone knows what’s what when it comes to financial health.

Establishing Best Practices and SOPs: A Fractional CFO can help set up best practices and SOPs to ensure consistency and compliance in accounting operations. This includes providing detailed guidelines for daily tasks, regular audits, and reviews to maintain high standards in financial management.

In-House Expertise

Fractional CFOs aren’t just quick fixes; they’re strategic partners who add immense value, such as:

Helping Achieve Company Goals: Fractional CFOs are there to help your business succeed. With their extensive background and expertise, they can set realistic financial goals and create actionable strategies to reach them, all while tailoring their approach to fit your unique needs.

Providing Strategic Insights: Fractional CFOs offer a fresh perspective on your finances, guiding you to make smart decisions for growth. They analyze your financial data, spot trends, and provide insights that your internal team might miss. This outside viewpoint can uncover new opportunities and reduce risks.

Improve Your Accounting With a Fractional CFO

At the end of the day, a fractional CFO is here to help your team navigate your finances and, most importantly, succeed! Whether that means updating accounting processes or bringing fresh insights, they’re dedicated to your success.

Ready to get started? Chat with our expert fractional CFOs at Ledge Financial today and see how we can help leverage your numbers.

Being a woman in finance is no easy feat, but here at Ledge, we’re lucky to have an amazing team of women who play a pivotal role in shaping our success. For this blog post, we’re branching out from our usual financial tips content to celebrate the stars at Ledge, and a near-and-dear woman in finance named Mary Esther. Let’s dive in!

Women’s Rise in Finance

The journey of women in finance showcases their remarkable resilience. In the 1800s, societal norms restricted women from managing property or engaging in business deals. Fast forward to today,  they’re leading companies and managing big financial portfolios. This huge shift didn’t happen overnight; it was the result of a long fight for gender equality, strong determination, and society finally recognizing what women can do. Though finance is still a male-dominated field, with all the powerful, intelligent women out there, it’s no surprise that they are changing the narrative!

Mary Esther Paving the Way

When we talk about trailblazers, we have to shine a light on Emily’s grandmother, Mary Esther. Mary Esther knew she had a love of numbers pretty early, serving as treasurer on her school’s student council. Through this role, she impressed bank tellers and, knowing she had a knack for finances, offered a summer job at a bank when she was only in high school.

Continuing on her path, back in 1932, Mary Esther was the only woman at the University of Wisconsin majoring in accounting. Despite facing resistance from all sides, she powered through, earning impressive grades along the way, and in turn, inspired other women coming in to pursue accounting.

All it takes is one brave and determined woman to make waves. Mary Esther went after what she wanted, free of fear and full of determination, and paved the way for those to come!

The Women of Ledge

At Ledge, women in finance are not just part of the corporate game; they are driving change and leading progress. With their diverse backgrounds and unique personalities, they’re the heart and soul of our finance team. Join us as we get to know these incredible women and their inspiring journeys.

Emily Zellner

According to Emily, “I still don’t know what I want to be when I grow up :).” 😂 Despite this, her affinity for numbers and impactful contributions to the finance world speaks volumes. Emily chose a business path in college, simply because it was so general. Yet, her inherent knack for numbers and early exposure to data entry in her parents’ business laid the groundwork for her career. Emily loves the reward of seeing her skills directly benefit colleagues, clients, and the overall success of a business.

Who is a powerful woman you look up to?

“My grandmother, Mary Esther, was an independent and strong woman, though she remained humble and behind the scenes. She pursued her passion in finance and paved the way for so many other women. Despite making big contributions to the business world, such as being the first woman in UW Madison’s accounting program, assisting business owners in setting up bookkeeping after they bought a cash register from my Grandfather, and then doing all of the accounting of their own business later in life, she would always say her ‘job’ was to be a Mother. She balanced her life so well, and I am grateful to have learned such valuable lessons from her – through her words and, more importantly, her actions.”

Tanya Moenckmeier

Initially drawn to the creative world of fashion, Tanya pursued a degree in fashion merchandise. However, when she started working, the fashion industry, with its glitz and glamor, didn’t resonate with her as she had hoped. With a natural talent for numbers and an interest in how businesses operate, Tanya decided to enroll in the College of Business at the University of Central Florida, where she chose to study Accounting. According to Tanya, “It became clear to me that I had made the correct decision when I found more satisfaction in working with numbers in Excel spreadsheets than in flipping through the pages of the newest Vogue magazine.”

Who is a powerful woman you look up to?

“Lauren McMurtry, a professional in corporate finance, is a person I deeply admire. Beyond her academic and career achievements, she stands out for her generosity, kindness, and infectious positivity. Lauren is not only my best friend but also a role model whom I aspire to emulate.”

Rachel Herrera

How did you know you wanted to be in finance when you grew up?

Rachel Herrera stumbled into finance during college, shining in her Intro to Accounting classes. Encouraged by her professor, her problem-solving skills led her to pursue accounting—a field aligning with her passion for numbers and solutions. Despite the challenges of entering a male-dominated industry, Rachel’s journey has been uplifting, thanks to the support from colleagues. Rachel said, “From the beginning of my career I’ve been surrounded by men, and a few women, who have done nothing but encourage me to continue my career in accounting/finance.”

Who is a powerful woman you look up to?

“I look up to my mother! She is not in finance in any way, but actually stayed home to raise my sister and me for ten years. It wasn’t until recently in my career, and maybe after I became a mother as well, that I realized what a sacrifice that is to one’s independence and career.” 

Let’s Continue Transforming Finance!

In today’s finance world, women are making their mark. Finance isn’t just for the boys anymore—it’s a space where women lead and thrive.

To all the young women considering a career in finance: your ideas and perspectives matter! Let’s celebrate the achievements of women in finance and pave the way for future generations. 💪

Thanks for following along! To learn more about the Ledge team and what we do, let’s chat. 

It’s the stuff entrepreneurs and founders dream of. You’re a few years into the business and starting to hit your stride. What was once your first million-dollar year quickly becomes your first 5 million-dollar year. Maybe even 10 million.

As your business grows, you want to spend time on the areas you’re passionate about like strategy, innovation or your product roadmap. However, that’s hard to do when you’re responsible for everything – people, processes, technology and finance.

What’s more, your entire team is operating at capacity. So, nobody else has time to focus on your finances or help ensure you can scale, even though a healthy balance sheet is critical for your continued growth and success. 

If this sounds familiar, it may be time to bring in an outside finance partner to help. Someone who can counsel you on the financial side of the business and offer you honest, forward-looking financial advice that helps you grow. 

This role is usually called an outsourced CFO, a fractional CFO or a virtual CFO. No matter which term you use, this guide covers everything you need to know about how to bring one onto your team, including:

• What is an outsourced CFO? 
• Why do companies outsource a CFO?
• How to know if your company needs an outsourced CFO
• How do you evaluate which firm is best for your company?
• Preparing to onboard your CFO
• What to expect from outsourcing a CFO

What is an Outsourced CFO?

An outsourced, or virtual, CFO is the finance arm of your business. They handle all your strategic finance needs like accounting, budgeting and forecasting. They can also address the day-to-day operations like monitoring cash flow and managing payroll. 

It’s like having a CFO and a finance department without building one. 

Why Do Companies Outsource a CFO

As companies grow, especially when it’s happening quickly, they need access to different counsel and advice. The focus has to stay solely on the future and looking ahead. 

Not every accounting firm aligns with this high-growth way of doing business. Some are more skilled at looking backward. However, boutique finance firms, like ours, have deep expertise in working with founders and entrepreneurs whose annual revenue reaches the 20 million mark, roughly. Once you reach this threshold, we’ve found that it’s probably time to add someone internally and work with a fractional CFO in a more consultative way.

Generally speaking, this size company realizes these benefits from outsourcing their CFO function: 

• Building a team of advisors – It’s common for founders to supplement their small internal team with a few external experts. 
• Gaining an external perspective – Sometimes, you just want to bounce an idea off someone not on your team. You know, get a third-party reality check. Here’s where an outsourced CFO can be a lifesaver. 
• Having access to a broad range of financial expertise – An outside finance partner can offer the full spectrum of knowledge you need depending on your current challenges. 
• Partnering with growth-minded vendors – High-growth companies want to work with high-growth partners. It’s a shared passion that’s hard to describe. If you know, you know. 

How to Know if Your Company Needs an Outsourced CFO

In our experience, founders and CEOs in any industry can benefit from outsourcing a CFO. Usually, they bring someone on when they’re facing one or more of these challenges:

• Spending less time in areas of the business where they find passion.
• Using weekends to catch up on financials or unravel a financial challenge.
• Facing a specific financial challenge (e.g., tax-related).
• Becoming concerned about the unknowns because you’re moving so fast.
• Having cash flow problems now or anticipating them in the near future.
• Lacking someone they can talk to openly and candidly about the financial side of the business.

Of course, there are dozens more things you could add to this list. These are some of the most significant financial pain points founders and CEOs are experiencing when they give us a call.  

How to Evaluate Which Outsourcing CFO Firm is Best for Your Company

If you’re considering a fractional or outsourced CFO, you will, of course, want financial expertise. That’s table stakes. Beyond that, here are some things you should consider: 

• Can you learn from this person?
• Will they push back and challenge you?
• Do they add something to your internal team?
• Are they growth-minded?
• Can you see yourself working with them long-term? 
• Do you feel a personal connection?

If a few of these surprise you, we believe work is more rewarding when people pass the vibe check – even when it comes to finance. This is especially true if you’re facing a significant financial challenge. If that’s the case, you deserve to feel like you can trust the team you’re working with to sort it out on your behalf.

Preparing to Onboard an Outsourced CFO

As part of your decision-making process, you’ll want to get your fractional CFO up to speed quickly. Ask potential vendor partners how they:

• Evaluate your current/state financials
• Identify your top finance priorities
• Approach your most critical challenges
• Focus on getting money in the door

Then, ask how they stay involved with you and your team to shift the focus back to looking ahead and continuing to grow. They should have a flexible but templated approach to ensure you have a good onboarding experience.

What to Expect From Outsourcing a CFO

Your business has its own rhythms and routines. An experienced virtual CFO will be able to drop right into that. They’ll focus on setting up your monthly financials, managing your cash flow, and taking care of your budgeting, forecasting, and reporting requirements. 

In addition, you should have a regular cadence of touch-base meetings to ensure you and your internal team have the information you need to:

• Make decisions
• Take advantage of opportunities
• Invest in the business

One advantage to working with a smaller, boutique CFO is the ability to customize what you need. No two situations are truly the same, so you don’t want a one-size-fits-all approach.

Growing a Business Should Be Fun

At this point, you may have noticed we’re not a traditional accounting firm – no pinstripes and navy blue suits here. We take a more modern approach and unapologetically lead with our hearts. We care about people. We prioritize building relationships.

You see, we’ve been in meetings with new clients where you can see the worry in their eyes. They have a cash flow problem (or worse), and they know it. As a result, they have no choice but to lay their situation bare to us. 

It’s a humbling experience. 

It’s also extremely rewarding when you see that same client and notice their smile is back just a few weeks later. They’re feeling lighter already. 

Although we love numbers, our passion lies in building relationships. We want to know you and your business so that we can provide education and services that meet your unique needs.  Allow yourself to focus on whichever aspect of the business you are most passionate about and leave the financials to us. Reach out to Ledge Financial today to take the next steps toward hiring an outsourced CFO. We look forward to hearing from you!