The evolution of Fractional CFO Services
Business Advisory Services Update
Christian Wielage, CEO of Plan Guru Inc, described “Fractional CPAs” as including ex-bankers and corporate finance people. They do not want to touch accounting systems if they don’t have to. They want to dictate how the accounting system is set up, and make sure that everything flows and that they can access the numbers they want.
These folks are more deal-oriented in that they might work with 2 or 3 clients for 3 years to achieve a big exit or capital rise.
There is another subsection within this group. They may have 15 clients and have monthly meetings where they go through everything with their client. These consultants have a routine where they’re spending between half an hour to 4 hours per client per month.
“I’d say 10 years ago the vast majority of people delivering these services were non-accounting firms offering CFO services, but that is starting to change. Accountants see automation as eliminating a lot of basic accounting work.”
In the USA a growing number of accounting firms are filling this void by offering “Fractional CFO Services.”
Whilst there have been a lot of talk about this over the years, it’s happening now and, if you’re not minimising repeatable tasks and optimising business processes so that you have monthly financial information for your clients, another firm will eventually step in to have a discussion with your client and offer a full service. They will paint the picture of the exciting financial forecasting to a business owner, along with up-to-date information that they will receive on a monthly basis, with financial advice to help them run their business.
ESS BIZTOOLS can help you get started with offering the types of services SMEs are seeking. Visit www.essbiztools.com.au to find out more.
