We aren’t talking about peanut butter and chocolate (although that is good); we are talking about a part-time bookkeeper and a part-time CFO. That combination lets you do what you do best – create new products and services for your small business.
You can look at the management of your business in three parts, they are:
Transactional – This is the daily grind. All of the incoming and outgoing items occurring each day. Transactions can be as small as a return or as large as acquiring a new space.
Strategic – This is the magic the fractional CFO delivers. Most small businesses cannot afford the expertise of a CFO. Fortunately, a consulting CFO will add value and fine tune your business by:
- Providing tailored internal processes
- Reviewing and discussing weekly metrics and Key Performance Indicators (KPIs)
- Developing growth and revenue strategies (short-, mid-, and long-term)
- Monitoring performance and suggesting changes
- Assisting with succession planning
Tactical – This is the marriage of the transactional and strategic work and where the expert bookkeeping comes in. The part-time bookkeeper knows the vision and processes put in place by the CFO and models their work based on it. The bookkeeper will:
- Keep the engine running smoothly – no more worrying if accounts are reconciled or if vendor bills are paid
- Actively monitor accounts receivable
- Work with your outside accountant for month-end, year-end, and audit support
- Generate accurate and timely financial reports
- Protect your data by backing up the accounting system. If you are using desktop software, they will back up files daily to ensure nothing is lost in a system failure. We like cloud-based software such as QuickBooks since it’s a constant backup -- but that’s a topic for another blog.
An Opportunity to Re-Focus
A small business owner who spends their time managing relationships and refining product offerings is one who will see growth in their business. Leave the daily stuff to the experts.