Frequently Asked questions
What are the benefits of a fractional CFO?
A fractional (or part-time, outsourced) CFO has a number of benefits for companies needing financial and accounting help. Fractional CFO's provide companies with professional C-level financial management experience, but only on an as-needed basis. Many company owners and CEO's need an executive level partner to assist with the strategic decisions of the business, one who can also provide financial analysis, forecasting, budgeting and on-going monitoring as plans are implemented. Additionally, these company owners and CEO's need someone to oversee the administrative burdens of running a business so they can focus on the strategic direction of the company.
However, owners and CEO's do not necessarily need such a financial partner on a full-time basis or perhaps cannot afford one currently. A fractional CFO provides the needed financial sophistication on a basis that can be "scaled" to fit the current needs of the business. Also, unlike a full-time CFO who is a typically W-2 employee with a substantial salary and other employee benefits, a fractional CFO is an outsourced resource under a 1099 independent contractor basis. There are no long term contracts or commitments involved.
Thus, a fractional CFO provides company owners and CEO's with a flexible, affordable and convenient option for much needed strategic, financial and administrative support.
I’m not sure I need a CFO, but I need help with basic bookkeeping and accounting. How can your solution help me?
Regardless of whether you have more sophisticated financial management needs, every business has the need for basic bookkeeping and accounting to track its financial performance. We have bookkeepers at very reasonable rates that can handle the basic bookkeeping and accounting functions of a business. Ideally, we then use the basic financial results to help you analyze your business’ performance and strategize and plan for its future. This is where fractional CFO services can help make running your business easier, assist you in achieving your goals for the business, and enhance the value of the business.
I have an outside accounting firm that can help me with my financial decisions. Why would I need a fractional CFO?
Clarity CFO does not replace your outside accounting firm, but rather works closely with them to fulfill the financial, accounting and tax needs of companies. Accounting firms are an excellent source of knowledge and assistance in all of these areas and sometimes offer consultative services for internal finance and accounting needs. However, when the internal needs of a business become more extensive, the hourly billing rates that accounting firms require often become cost prohibitive and a fractional CFO that bills on a flat monthly rate as needed becomes a more economically practical solution. Outside accounting firms are still needed for preparation of tax returns, attestation services (audit, etc.) if necessary, and other services they can provide, and Clarity CFO communicates and coordinates with these outside firms to meet the financial and accounting requirements of the business.
How can Clarity CFO help with strategic planning for my business?
A good CFO is typically a key strategic partner to the company CEO, owners and board of directors in developing the strategic goals and plan for the business, and particularly for translating the plan into a financial roadmap that quantifies what success looks like. Additionally, our experience covers a wide range of industries, giving us a broad understanding of a number of different types of businesses and what it takes to succeed in them. Once the strategic plan is set, we then help implement it and measure progress against its goals.
I have an existing accountant (or bookkeeper or office manager) on staff? Why would I need your services?
Every company has its own unique set of circumstances which drives their particular finance and accounting needs. Some businesses are relatively straightforward and uncomplicated from an accounting standpoint and do not have significant financing needs nor are involved with unusual transactions such as mergers and acquisitions. These companies are often perfectly well served with an accountant or even a bookkeeper or office manager, perhaps in conjunction with support from their outside accounting firm.
Other business have more complicated circumstances that often require a broader perspective in these areas. Examples include growth companies that have cash flow challenges and outside financing needs, companies involved in transactions such as mergers and acquisitions, companies whose ownership is changing, companies with outside investors who desire a professional financial manager, companies that are experiencing financial challenges or difficulties, or companies that have simply grown and matured to a level that requires a more sophisticated approach to finance.
We would be delighted to discuss your unique circumstances and whether a fractional CFO is appropriate to your needs.
How do you bill for your services?
We typically bill for CFO services on a flat monthly fee basis negotiated based on the amount of time (number of days) dedicated to the business. For bookkeeping services, fees may be billed on an hourly rate or on a monthly rate depending on the situation; the volume of transactions and other factors affect this determination.
I am considering selling/exiting my business in the near future. How can you help me?
Good planning and forethought are critical to maximizing the value of a business in a sale. There are key factors that influence value, including financial metrics such as profitability, growth trends, and financial stability, as well as other factors such as depth and stability of the management team and organized financial statements and accounting systems. While the ability to influence some of these factors may be limited by market and competitive conditions, there are still a number of steps that can be taken to prepare a company for a sale and maximize the value realized for the business.
My company is struggling financially. How can you help me?
Clarity CFO has experience in distressed situations and crisis management. Our turnaround experience will identify the root causes of the problem, gain a handle of the cash position and cash flow of the business, develop and implement a turnaround plan, and communicate and work with outside parties (bank partners, suppliers, other creditors, customers, legal counsel, etc.) to gain support for the plan.
I want to know what my business is worth. Can you help this?
Clarity CFO is affiliated with Valuation Associates, LLC, and can facilitate business valuations for whatever the purpose. Business valuations are needed in a variety of circumstances including the sale or purchase of a business, shareholder buy/sell agreements and disputes, estate and gift tax planning and compliance, litigation, marital disputes and other situations. There may be certain circumstances where Clarity CFO's role as company CFO may present a conflict of interest for certain types of valuations provided by Valuation Associates. In these cases, we can arrange for the valuation work to be performed by an independent valuation firm.
A fractional (or part-time, outsourced) CFO has a number of benefits for companies needing financial and accounting help. Fractional CFO's provide companies with professional C-level financial management experience, but only on an as-needed basis. Many company owners and CEO's need an executive level partner to assist with the strategic decisions of the business, one who can also provide financial analysis, forecasting, budgeting and on-going monitoring as plans are implemented. Additionally, these company owners and CEO's need someone to oversee the administrative burdens of running a business so they can focus on the strategic direction of the company.
However, owners and CEO's do not necessarily need such a financial partner on a full-time basis or perhaps cannot afford one currently. A fractional CFO provides the needed financial sophistication on a basis that can be "scaled" to fit the current needs of the business. Also, unlike a full-time CFO who is a typically W-2 employee with a substantial salary and other employee benefits, a fractional CFO is an outsourced resource under a 1099 independent contractor basis. There are no long term contracts or commitments involved.
Thus, a fractional CFO provides company owners and CEO's with a flexible, affordable and convenient option for much needed strategic, financial and administrative support.
I’m not sure I need a CFO, but I need help with basic bookkeeping and accounting. How can your solution help me?
Regardless of whether you have more sophisticated financial management needs, every business has the need for basic bookkeeping and accounting to track its financial performance. We have bookkeepers at very reasonable rates that can handle the basic bookkeeping and accounting functions of a business. Ideally, we then use the basic financial results to help you analyze your business’ performance and strategize and plan for its future. This is where fractional CFO services can help make running your business easier, assist you in achieving your goals for the business, and enhance the value of the business.
I have an outside accounting firm that can help me with my financial decisions. Why would I need a fractional CFO?
Clarity CFO does not replace your outside accounting firm, but rather works closely with them to fulfill the financial, accounting and tax needs of companies. Accounting firms are an excellent source of knowledge and assistance in all of these areas and sometimes offer consultative services for internal finance and accounting needs. However, when the internal needs of a business become more extensive, the hourly billing rates that accounting firms require often become cost prohibitive and a fractional CFO that bills on a flat monthly rate as needed becomes a more economically practical solution. Outside accounting firms are still needed for preparation of tax returns, attestation services (audit, etc.) if necessary, and other services they can provide, and Clarity CFO communicates and coordinates with these outside firms to meet the financial and accounting requirements of the business.
How can Clarity CFO help with strategic planning for my business?
A good CFO is typically a key strategic partner to the company CEO, owners and board of directors in developing the strategic goals and plan for the business, and particularly for translating the plan into a financial roadmap that quantifies what success looks like. Additionally, our experience covers a wide range of industries, giving us a broad understanding of a number of different types of businesses and what it takes to succeed in them. Once the strategic plan is set, we then help implement it and measure progress against its goals.
I have an existing accountant (or bookkeeper or office manager) on staff? Why would I need your services?
Every company has its own unique set of circumstances which drives their particular finance and accounting needs. Some businesses are relatively straightforward and uncomplicated from an accounting standpoint and do not have significant financing needs nor are involved with unusual transactions such as mergers and acquisitions. These companies are often perfectly well served with an accountant or even a bookkeeper or office manager, perhaps in conjunction with support from their outside accounting firm.
Other business have more complicated circumstances that often require a broader perspective in these areas. Examples include growth companies that have cash flow challenges and outside financing needs, companies involved in transactions such as mergers and acquisitions, companies whose ownership is changing, companies with outside investors who desire a professional financial manager, companies that are experiencing financial challenges or difficulties, or companies that have simply grown and matured to a level that requires a more sophisticated approach to finance.
We would be delighted to discuss your unique circumstances and whether a fractional CFO is appropriate to your needs.
How do you bill for your services?
We typically bill for CFO services on a flat monthly fee basis negotiated based on the amount of time (number of days) dedicated to the business. For bookkeeping services, fees may be billed on an hourly rate or on a monthly rate depending on the situation; the volume of transactions and other factors affect this determination.
I am considering selling/exiting my business in the near future. How can you help me?
Good planning and forethought are critical to maximizing the value of a business in a sale. There are key factors that influence value, including financial metrics such as profitability, growth trends, and financial stability, as well as other factors such as depth and stability of the management team and organized financial statements and accounting systems. While the ability to influence some of these factors may be limited by market and competitive conditions, there are still a number of steps that can be taken to prepare a company for a sale and maximize the value realized for the business.
My company is struggling financially. How can you help me?
Clarity CFO has experience in distressed situations and crisis management. Our turnaround experience will identify the root causes of the problem, gain a handle of the cash position and cash flow of the business, develop and implement a turnaround plan, and communicate and work with outside parties (bank partners, suppliers, other creditors, customers, legal counsel, etc.) to gain support for the plan.
I want to know what my business is worth. Can you help this?
Clarity CFO is affiliated with Valuation Associates, LLC, and can facilitate business valuations for whatever the purpose. Business valuations are needed in a variety of circumstances including the sale or purchase of a business, shareholder buy/sell agreements and disputes, estate and gift tax planning and compliance, litigation, marital disputes and other situations. There may be certain circumstances where Clarity CFO's role as company CFO may present a conflict of interest for certain types of valuations provided by Valuation Associates. In these cases, we can arrange for the valuation work to be performed by an independent valuation firm.