The Fractional CFO
Entrepreneurs are often watching their bank accounts in place of monthly/quarterly financial statements. We refer to this as Cigar Box Management or CBM for short. If there is money in the box, we grow and change. If the box is empty, we stop. You would be surprised at how big and complex life safety businesses can get under this methodology. Ultimately, as businesses begin to work with 3rd parties such as lenders or equity partners, a better understanding of the expense structure is required. CBM also makes it difficult to build a Budget or drive a management teams’ compensation plan.
Whether you’re using Quickbooks, Sedona, the Check book or another accounting system it is helpful to see more than just the Billing go out, Accounts Receivable come in, Payroll and Accounts Payable.
While many businesses have a great Bookkeeper or Office Manager, having a seasoned financial professional alongside as you direct and grow the business is critical for setting financial goals and developing guardrails that help entrepreneurs guide the business and sleep better.
For decades the professionals at TRG have worked alongside bookkeepers and finance teams to provide financial expertise, allowing entrepreneurs to make better informed decisions regarding the people, operations, and customers.
Hiring a full-time financial Controller or CFO is expensive. The fractional CFO role can provide the best of experience while not costing that of a full-time employee.
We often work with owners to set a scope that ranges from financial oversight to running the finance team. TRG integrates with existing staff to help with cost accounting, departmental margin analysis, cash planning/ forecasting, debt compliance and budget preparation. Often our work helps establish the financial building blocks the business will utilize into the future. This process can Help to put a Line of Credit in place, develop a Job Cost system, acquire another business, or analyze the costs to install new systems or service customers to build better pricing alternatives. In the end we also help to hire the first full-time CFO as we work to reduce our role.