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Florida CFO Group
(877) 352-2367ASK A CFO
Florida CF Group
(877) 352-2367ASK A CFO

Introduction: Dispelling Misconceptions 

In the world of accounting and finance, there’s a common misconception that everything must align to the penny, that precision reigns supreme, and that all accountants share a singular personality type akin to our meticulous friends in the actuarial profession. However, this couldn't be further from the truth. As CFOs, we find ourselves in a multifaceted role, often juggling an array of responsibilities with limited resources at our disposal.

The CFO's Multifaceted Role: Beyond Number Crunching

Our role extends far beyond mere number crunching. Yes, ensuring the accuracy of financial records is crucial, but it's just one piece of the puzzle. We are tasked with defining and implementing robust accounting systems, establishing effective controls, managing accounts receivable and accounts payable, and steering our organizations towards revenue growth. Yet, our responsibilities don't stop there. We collaborate with the CEO to devise strategies for penetrating new markets, mitigate risks inherent in our operations, and secure appropriate insurance coverage to safeguard our assets.

Prioritization: Guiding the Team

Amidst this whirlwind of responsibilities, a fundamental aspect of our role emerges: prioritization. With finite resources and an expansive to-do list, we must guide our teams in determining where to allocate time, effort, and resources. However, contrary to popular belief, this doesn't always entail pinpoint accuracy or meticulous precision. Instead, it requires a nuanced understanding of our organization's objectives and a willingness to embrace a concept we like to call "between the goal posts."

Operating Between the Goal Posts: Embracing Flexibility

What does it mean to operate between the goal posts? Picture a football field. The goal posts serve as a target, representing our desired outcomes or objectives. Yet, just as a kicker doesn't always nail the ball dead center between the posts, we, too, recognize that perfection isn't always attainable or necessary. Instead, our aim is to navigate within the boundaries of the goal posts, striking a balance that aligns with our organization's overarching goals.

Flexibility and Adaptability: Key Attributes

This concept of operating between the goal posts allows for flexibility and adaptability in our approach. It acknowledges that in the dynamic landscape of finance and accounting, circumstances can change, priorities can shift, and resources may fluctuate. Rather than striving for unattainable perfection, we focus on achieving outcomes that fall within an acceptable range, effectively managing risk while maximizing efficiency.

Cultivating a Culture of Innovation

Moreover, operating between the goal posts fosters a culture of innovation and agility within our organizations. By empowering our teams to take calculated risks and explore new opportunities, we position ourselves for continued growth and success in an ever-evolving marketplace.

Conclusion: Navigating Success

In conclusion, the role of a CFO extends far beyond numerical precision. While accuracy and attention to detail are essential, so too is the ability to navigate the complexities of our responsibilities with agility and pragmatism. By embracing the concept of operating between the goal posts, we can effectively prioritize tasks, manage resources, and steer our organizations towards success in an unpredictable world.

The Authors

Tim Journy is a Partner at the Florida CFO Group and a seasoned professional, with a proven track record of implementing best practices, enhancing internal controls, and driving financial success across diverse industries. Tim has significant experience in the financial and risk management areas having served as Chief Financial Officer for multiple companies, including General Auditor for a Fortune 50 international organization and Audit Partner for a Big 4 firm.  You can also visit Tim’s LinkedIn Profile for more information.

Don Noble, a distinguished Partner at the Florida CFO Group and a technology expert, boasts an extensive background in financial leadership and advisory roles. Leveraging his wealth of experience, he collaborates with businesses to optimize their financial and technological strategies, fostering growth and resilience in the dynamic marketplace. You can also visit Don’s LinkedIn Profile for more information.

Contact Us

If you have any questions or would like to have a discussion in your organization’s goal posts, please give the Florida CFO Group a call. We are here to help you navigate your financial challenges and achieve success.

 

Introduction:

The role of a fractional CFO extends far beyond managing financial strategies; it involves a critical evaluation of the existing Accounting, Finance, and Treasury teams within a company. Upon commencing a client engagement, an important mission of a fractional CFO is to provide a fresh perspective to owners and private equity sponsors. This involves a comprehensive assessment of the operating teams, aiming to identify skills gaps and enhance tactical and strategic proficiencies. In this article, we delve into the importance of this assessment and how it sets the stage for long-term success.

Immediate Assessment for Strategic Alignment:

Upon stepping into a new client engagement, a fractional CFO understands the urgency of assessing the existing teams. This initial evaluation serves as a foundation for aligning financial goals with the overall strategic objectives of the organization. By identifying and communicating requisite skills, proficiency gaps can be immediately addressed.   This proactive approach ensures that team members are equipped for success at an early stage of the engagement.

Addressing Tactical and Strategic Proficiency Gaps:

Identifying proficiency gaps is a key aspect of the assessment process. Tactical proficiency relates to the day-to-day operational skills required to execute financial functions effectively. Strategic proficiency, on the other hand, focuses on the ability to contribute to long-term financial planning and decision-making. The fractional CFO, through a keen understanding of both aspects, can guide the teams in addressing these gaps promptly.

Building Team Morale:

Addressing proficiency gaps not only enhances the capabilities of individual team members but also contributes significantly to building team morale. Team members feel supported and empowered when they receive the necessary resources and guidance to improve their skills. A fractional CFO, acting as a mentor and catalyst for positive change, fosters an environment where team members are motivated to excel.

Collaborative and Repeatable Template for Achievement:

The lasting impact of team assessment goes beyond immediate improvements. It lays the groundwork for a collaborative and repeatable template for achievement. The fractional CFO, by identifying and addressing proficiency gaps, sets a precedent for continuous improvement. This becomes a part of the organizational culture, fostering a mindset that values ongoing learning and adaptation to industry changes.

Conclusion:

In the dynamic landscape of finance, the role of a fractional CFO as a strategic partner is indispensable. The immediate assessment of Accounting, Finance, and Treasury teams forms the bedrock for success. By identifying and communicating requisite skills, addressing proficiency gaps, and building team morale, the fractional CFO creates a collaborative and repeatable template for achievement. The ripple effects of this proactive approach are felt not only in the short term but also contribute to the long-term resilience and success of the organization.

The Author:

Andrew Kirk, a Partner at the Florida CFO Group, provides owners and private equity sponsors with collaborative solutions to complex business challenges delivering sustainable results.  Check out his LinkedIn profile at www.linkedin.com/in/andrew-w-kirk-96879412/.

 

Hiring a CFO is a major milestone in the maturity and growth of a company. Finding the right operational financial executive can make all the difference in the rate of growth and the stability of a company. As a company grows, investing in sales, marketing, and operations is imperative, but an often-overlooked opportunity for growth is a Fractional CFO.

The CFO is the top financial executive of a company and has the overall responsibility for the financial management and activities of a company. Responsibilities include:

Most importantly your CFO should be a strategic partner, aligning a company’s business and financial strategy. 

A Fractional CFO, often also referred to as an outsourced or part-time CFO, provides a company with experienced financial and strategic guidance, typically at a lower cost than a full-time CFO employee of a company.

Beyond the cost of a full-time CFO, a Fractional CFO offers flexibility, experience, and qualifications that are often out of reach for small and medium-sized businesses.

1 – Experience and Expertise

Experience matters. Fractional CFOs have been full-time CFOs and are experienced in navigating a company’s growth. They bring not just years of experience but the expertise and perspective that comes from years of accumulated knowledge and experience.

Likely, they have been through major transactions such as debt and equity financing, mergers and acquisitions, regulatory compliance, and implementation of systems and internal controls.

Experienced Fractional CFOs can quickly assess, diagnose, and structure plans to address a company’s needs and challenges to provide more informed decisions.

2 – Strategic Guidance

The true value of a Fractional CFO comes from bringing their expertise to long-term planning, financial decisions, and business decisions regarding growth management, cost control, investments, and risk management, which can only come from years of experience. CFOs have technical backgrounds but it’s the development of a long-term strategic perspective that contributes to better-informed decisions.

3 – Flexibility

Fractional CFOs can serve companies in various ways. They can step in when there is a vacancy to fill in a full-time CFO role, providing leadership and stability during a transition. They can become a company’s first financial leadership as a company grows or can begin on a project basis filling needs such as budgeting, capital raising, planning, or improving financial processes and systems.

Fractional CFOs can grow with a company’s needs. They can provide guidance and expertise. They can also be flexible in terms of the scope of engagement and the amount of time devoted to a company. Engagements can range from as much as full-time to as little as hours per month.

4 – Objectivity

A key factor that a Fractional CFO brings to the relationship is objectivity derived from experience - and one that comes from freedom from internal politics and corporate ambitions. Clear-eyed, unbiased objectivity can better inform decisions and provide a wider range of perspectives and options.

5 – Cost Effectiveness

Since Fractional CFOs are hired on a part-time basis, the costs are much lower than a full-time CFO. Fractional CFOs are typically paid as contractors, so there are savings on the typical employee overhead. Hiring a full-time CFO requires a commitment, a complete pay package, plus the time and cost invested in making a great hiring decision.

The cost savings combined with the experience, expertise, strategic guidance, flexibility, and objectivity of a Fractional CFO can provide incredible value to small and medium-sized businesses.

 

About Donna Mackenzie

Donna has navigated through multiple capital raises from seed funding to Series D to public raises. She has led due diligence and negotiations for numerous financings, mergers, and acquisitions (M&A) on both the buy and sell side, public offerings, and reverse mergers (SPACs). She has partnered with founders and management teams to grow revenue from startup to over $100M.

She is a strategic, passionate, entrepreneurial, and respected leader focused on navigating companies during periods of high growth and change bringing her financial, business, technical, and operational expertise to drive solutions and take advantage of opportunities and challenges.

Donna has been a Fractional CFO for nearly ten years after spending her career as a management consultant and then CFO of several tech and tech-enabled companies.

 

Talk with Donna Now.

Submit the form below or email Donna Mackenzie.

Join us in welcoming three more experts to our CFO partner roster, with each new partner representing a different area in Florida. We welcome Timothy Journy from Tampa, Donna Mackenzie from Orlando, and Nathan Lawless from South Florida.

Our CFO partners collaborate, sharing their expertise so clients have second (or even third) opinions from specialists without the need to seek more outside counsel. When business leaders need strategic direction, financial guidance, and a growth plan, our CFOs step in to be that strategic partner. You choose which CFO would make the best fit as your partner. Fortunately for the Florida CFO Group, we have an expert in nearly every industry with knowledge and experience in a variety of financial skills. Let's start with some of our newest additions:

Tim Journy is goal-focused. He has worked with businesses in numerous industries including public company reporting, private entities, and turnaround situations. He helps build teams with the right talent to achieve overall growth. With more than 30 years of financial leadership experience, Tim has implemented successful strategies in risk management, operational efficiencies, and mergers and acquisitions.

If you need help with selling your business, establishing and overcoming challenging financial plans, creating Risk Control Assessments, implementing due diligence processes, identifying cost savings and operational efficiencies, or communicating complex financial transactions to board members, Tim is your CFO. Simply email Tim to get the conversation started.

Donna Mackenzie is strategic and entrepreneurial. She focuses on navigating companies during periods of high growth and change. Donna pinpoints opportunities by tackling challenges head-on. In addition to being a financial expert, Donna specializes in identifying and implementing technical and operational solutions. Donna's eye for new opportunities, raising capital, building management teams, and moving products to market is what drives revenue for organizations, allowing them to achieve profitability.

If you need help with raising capital, dealing with debt or public financing from stable to unstable markets, positioning your organization for transactions, embarking on due diligence, or negotiations for equity, M&A on both the buy and sell-side, public offerings, or reverse mergers, Donna is your CFO. Email Donna to talk strategy.

Nathan Lawless is a growth guru. He is passionate about scaling organizations and building enterprise value. Nathan is an executive leader with a strategic mindset focused on analysis and capital planning. He is operationally focused, aligning sales, operations, and support with key performance indicators. Nathan uses his expertise in technology and data to position companies for profitability.

If you need help allocating capital and creating infrastructure to encourage growth, developing high-performing finance, HR, and IT functions, or guidance on tying financial and operational goals into focused actionable behaviors that lead to structure and overall improvement, Nathan is your CFO. Email Nathan and let him know you're ready to pay attention to the details that make a difference for your company.

 

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