Maximize Your Impact as a Fractional CFO with External Accounting Support
As a fractional CFO, concentrate on strategy while we manage daily accounting. Our outsourced finance support covers reporting, payroll, tax compliance, and more. With our expert team, gain skills on demand, boosting your practice and client value.
Introduction
Introduction
As a fractional CFO, you wear many hats. You provide strategic guidance to clients, navigate complex financial situations, and ensure their businesses thrive. But managing the day-to-day accounting tasks can eat into valuable time dedicated to strategic thinking and client service. This is where external accounting and finance support comes in. By taking care of those core tasks and providing more strategic and industry-specific services, an effective external team allows fractional CFOs to maximize their impact and deliver even greater value to their clients.
"Each one of the team members that worked with me was a delight to work with. I found them very straightforward and punctual in all their dealings"
Ed O’Sullivan, Fractional CFO
What is external accounting and finance support for fractional CFOs?
Fractional CFOs, by their very nature, work with multiple clients on a part-time basis. This can create challenges in managing the day-to-day or specialist accounting and finance needs of those clients. External support bridges this gap by providing fractional CFOs with a team of accounting and finance professionals on an as-needed basis, allowing you to focus on strategy and scaling your practice.
Is external accounting and finance provided by a person or a team?
Outsourced accounting and finance for fractional CFOs can come either from a dedicated team or a single professional, depending on the specific needs of the fractional CFO. This flexibility allows you to scale your accounting and financial support efficiently, ensuring you have access to top-tier expertise while only paying for what you need at a given time.
What are the benefits of partnering with a third-party accounting and finance company for a fractional CFO?
Some of the ways that partnering with a third party for accounting and finance services can benefit fractional CFOs include:
- Opportunity to expand your services: The fractional CFOs' time is better spent on strategic initiatives rather than everyday tasks, and they may not have expertise in every area of accounting and finance across industries. Outsourced support can provide the expertise you need to handle day-to-day tasks such as bookkeeping, tax preparation, and financial reporting while also giving you access to niche specialists in, say, international taxation or industry-specific revenue recognition when required. This allows you to offer a wider range of services to your clients without needing to have that expertise yourself.
- Support for scaling the practice: As your fractional CFO practice grows, you will want to take on more clients. External accounting and finance partners can help you scale your practice by providing you with the additional staff and resources you need to support a growing client list.
- Time to focus on strategy: Outsourcing the day-to-day accounting and finance tasks means more time for you to focus on high-value strategic work and helping your clients grow their businesses. And, collaborating with a team of experienced specialists can help you think more creatively
- Cost-effectiveness: Hiring a full-time accounting and finance staff to meet the needs of a wide variety of clients can be expensive. Partnering with an external team for accounting and finance support can be a more cost-effective way to secure high quality talent, premium services and niche expertise.
- Access to up-to-date technology: Proactive accounting firms like Scrubbed know the value technology can unlock. They have access to the latest accounting software and tools and the experience to quickly establish effective workflows. to improve efficiency and help you provide enhanced client service.
"The value to me is that I can go to Scrubbed and say, let's get going. I know everybody there, and I'll pick up the phone at six in the evening my time, and Scrubbed can start on something."
Ed O’Sullivan, Fractional CFO
What does a contracted accounting and finance department look like for a fractional CFO?
A contracted department can be quite flexible depending on the CFO’s and clients’ specific needs. Your outsourced partner can comprise a dedicated team of accounting and finance professionals working together or be just a single highly skilled professional with the exact specialist knowledge that a client needs. The size and structure depend on the workload and complexity of your client base. The key aspect is the on-demand nature of the service meaning you can access expertise as needed, and use your resources more efficiently.
Typical services offered by an outsourced accounting and finance partner include:
- Core Accounting: This includes bookkeeping, accounts payable/receivable management, bank reconciliations, and payroll processing.
- Financial Reporting & Analysis: Preparing financial statements (income statement, balance sheet, cash flow statement) and analyzing financial data to identify trends and inform strategic decisions.
- Tax Support: Assistance with tax preparation and planning can be included, depending on the agreement. You can streamline tax preparation and planning , optimizing your clients’ financial health.
- Industry-Specific Expertise: An outsourced team can provide the strategic and hands-on experience in specific industries that is relevant to your client base.
How do you choose the right accounting and finance partner?
Not every outsourced team is right for every project. To ensure that you find a partner who will enhance your practice, consider these steps:
- Define needs: Clearly outline your current workload, client requirements, and areas where you need additional expertise. This will help identify the ideal partner and service level.
- Decide on your selection criteria: Establish a checklist of desired qualities in your partner. Consider factors like experience working with fractional CFOs and the type of clients you typically serve, industry knowledge, technology stack used, communication style, and security protocols.
- Research Potential Partners: Look for reputable firms with a proven track record of serving fractional CFOs. Industry associations and online directories can be good starting points, as well as referral or technology partners.
How can a fractional CFO onboard new accounting and finance partners?
A roadmap for onboarding outsourced accounting and finance resources that will set a strong foundation for a long-term relationship includes:
- Data Sharing and System Access: Establish secure methods for sharing client financial data with your partner. Grant them access to relevant accounting software and applications.
- Introduce the Team: Establish secure methods for sharing client financial data with your partner. Grant them access to relevant accounting software and applications.
- Establish Workflows and Procedures: Outline clear workflows and procedures to ensure consistent and efficient service delivery.
- Test and Monitor: Run a pilot project with a small sample of tasks to test the waters. Monitor performance, identify any initial hiccups, and make adjustments as needed.
"They're very reliable, detail-oriented, and on time with publishing financials."
Ed O’Sullivan, Fractional CFO
What are best practices for fractional CFOs working with an external accounting and finance team?
To maintain the relationship and ensure a long-lasting and productive collaboration, consider the following:
- Regular Communication: Schedule regular meetings or calls with the partner team to discuss ongoing projects, address any concerns, and ensure alignment with client goals. Regular communication will help you catch and address any issues promptly.
- Focus on collaboration: View your partner as an extension of your team and foster a collaborative relationship through knowledge sharing and joint problem-solving. This will ensure everyone is working towards the same goals.
- Performance Measurement: Conduct periodic reviews to assess the partner's performance against agreed-upon metrics. Provide and encourage the team to give constructive feedback and work collaboratively to optimize service delivery.
How do fractional CFOs measure the success of working with an external accounting and finance partner?
Success will be measurable in a combination of quantitative and qualitative factors. Key areas to consider are:
- Efficiency and Accuracy: How are they on timeliness, maintaining a low error rate, and delivering agreed-upon reporting and other services?
- Cost-Effectiveness: Are overall costs remaining within the agreed upon budget and are you achieving cost savings while maintaining quality?
- Strategic Impact: With routine tasks outsourced, are you able to take on more clients or dedicate more time to strategic financial consulting? Does the external team bring specialized skills that you can draw on to offer more, or more specialized, services to widen your client base?. Also, consider whether your clients are experiencing positive results due to the combined efforts of yourself and the outsourced team?
- Communication and Collaboration: Does the partner respond quickly and clearly to your inquiries and client needs? Are they effective problem-solvers who handle unexpected situations well? Do they proactively bring ideas and suggestions to the table that enhance the outcomes for your clients?
- Technology Integration: Does the partner's technology stack integrate with your existing accounting software and tools? Seamless integration minimizes manual data entry and streamlines workflows.
- Data Security: Are you satisfied with your partner's data security protocols and how well they ensure the safety and confidentiality of your clients' financial information.
Conclusion
By partnering with Scrubbed’s accounting and finance team, you can finally bridge the gap between managing daily tasks and delivering high-impact strategic support to your clients. Our on-demand, scalable solutions adapt to your specific needs, allowing you to seamlessly expand your service offerings without the burden of hiring and managing a full-time staff. This newfound efficiency translates into more time for client collaboration, strategic planning, and ultimately, driving the financial success of your clients’ businesses. Book a meeting with a Scrubbed professional today and discover how our expertise can empower you to take your fractional CFO practice to the next level.