No matter what occupation you are in, it is common to take your profession for granted. By that, I mean you assume other people know and understand what you do.
I am no exception.
I am the founder of Hovland Financial and Forensic, a firm that specializes in fractional and virtual certified financial officer (CFO) services.
The other day I told a banker what I do for clients and he looked at me as if I had horns growing out of my head. (No, I don’t have horns.) I realized that if this person, who looked at numbers all day, didn’t know what a this service was and what we did, then others are in the same quandary.
No, a fractional CFO is not a fraction of a person, although some days my kids make me feel that way.
They are is an individual who has had technical training and real-world experience with small and medium businesses in guiding them to their ultimate goal, whether that be:
Think of it this way, imagine if you could have a brand new 2020 Corvette (if you haven’t seen the new Corvette, think poor man’s Ferrari.)
Now imagine you could get to use the Corvette for a couple of times a month and just jump on the highway and mash the gas. When you’re done, you simply turn off the engine.
You don’t have to worry about car insurance, storage for the winter, regular car maintenance, etc. You only had to make payments at a fraction of the cost.
Almost like renting the car, but not having to constantly ‘checking it out’ of a dealership. That is what a fractional CFO is like.
If you were to hire a full-time CFO, you would pay anywhere from $150,000 – $250,000 a year in base salary, plus benefits. A fractional CFO is, you guessed it, is a small percentage of the cost.
Most firms that offer these services will usually charge anywhere from $50,000 – $75,000 a year for the services.
With this service you still get the experience of a full time CFO. The experience that a they will bring to your organization is:
Part of the the services is we not only help you put together a realistic budget, but we keep that in the forefront each week to see where the company is at in the process. Also, they will make sure that there are budgets broken down to the service or product level.
A budget for the overall company is good, but you should have budgets at the service or product level. When you do this, you will be able to identify what products or services are not performing, and quickly identify the cash conversions.
The second important aspect with budgets is they are a valuable internal control tool. If you had someone stealing from you, the discrepancy will usually show up in the budget to actual report.
A budget is a destination; the forecast is the map on how to get that destination.
Well, the most logical place is to search online.
Most fractional CFOs, sometimes referred to as virtual CFOs, work remotely. With the advances in online accounting software, virtual meetings, and online banking, you are no longer constrained to your local market to find a qualified professional.
My firm, Hovland Forensic and Financial, meets virtually with our clients up to six times a month and we access all their information through either a remote desktop or direct access via online accounting. We can not only review the information in real time, but help you identify opportunities to further your goals.
Even though we are outsourced, we still consider ourselves part of your C-suite team. Your goals are our goals.
Like a Corvette example, you can get the best part of a CFO’s knowledge at just a fraction of the cost of a full-time CFO. Isn’t it time you mashed the gas on your company?