Lots of exciting AI action this week in the world of accounting including why I believe the future of finance is fractional.

The Future is Fractional

Most growing businesses realize they need an accountant.

Few realize they need a fractional CFO.

Most SMEs think a CFO is for "big" businesses.

They have no clue what fractional means ("oh, you mean they just do a fraction of my books?").

Its all about positioning and branding (see a great thread on this from Tony Wilson, CPA, CMA) but at the end of the day there is also education involved.

You can't bring on a fractional CFO (or outsourced CFO) if the SME does not know what it is or what they do.

This is why the best fractional CFOs lead with education.

Put out enough "a ha" moments like cash flow ideas and SME financing strategies and the conversation changes from "what is a CFO and do I need it" to "I need to get my cash flow projected if I want a better shot at that loan!".

Gone are the days of the overworked, underutilized finance chief.

Enter the era of the strategic, data-driven fractional CFO.

Selling sleep

A good fractional CFO doesn’t sell accounting services, he sells sleep.

A fractional CFO is a human being who helps you sleep better at night, and, oh, happens to be an on-demand finance leader available for part-time CFO services.

With financial expertise in high demand among growth-stage companies, the fractional CFO market is exploding.

These agile fractional execs swoop in to deliver financial leadership when and where it’s needed most.

They provide the savvy strategy of a CFO without the expense of a full-time hire.

But why now and what sets apart the best ones from the pack?

Not all fractional CFOs are created equal

Traditional fractional CFOs can run into limitations like availability, divided loyalties, and lack of client knowledge.

The future fractional CFO flips the script by leveraging technology.

Let’s have a look at traditional versus a newer breed of outsourced CFOs to contrast the difference.

The Old Way vs The New Way

Lack of Availability

The Old Way: Spread thin across clients, traditional fractional CFOs may lag in responsiveness.

The New Way: Real-time analytics, forecasting and instant notifications ensure round-the-clock visibility.

ProTip: Apps like Fathom combine reporting, fast cash flow forecasting and actionable financial insights into client-friendly automated reports.

Divided Loyalties

The Old Way: Juggling competing priorities leads to divided loyalties.

The New Way: Intelligent time management optimizes work allocation.

ProTip: Apps like Keeper.app literally break-down allocation and distributes workloads to not just staff but outsourced/offshored help as needed.

Lack of Institutional Knowledge 

The Old Way: Because they are not full-time, fractional CFOs may lack client knowledge.

The New Way: Knowledge management systems retain institutional insights.

Outdated Processes

The Old Way: Clients maintain messy financial processes.

The New Way: Process automation and digital workflows streamline systems.

By leveraging technology, future fractional CFOs can offer not just complete financial leadership, but a turnkey solution tailored on a micro level.

It’s the best of both worlds – specialized expertise with dedicated availability.

The rise of the fractional CFO means access to transformative financial leadership is now within reach for organizations of all sizes.

The next generation are using leverage like AI tools to work faster (in some cases not at all) coupled with novel pricing models that seal the deal.

1. The Best Accountants on LinkedIn Teach [LINK]
   

   

2. The One Sales Strategy That Has Never Failed Me [LINK]

   

3. The Aspirational Accountant's Manifesto [LINK]