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Tips for Outsourced Chief Financial Officer

Here are tips for an outsourced chief financial officer…forward looking statements. That’s what most people do, which would be the forecast. When I say a forecast, I’m really thinking about more sales. Some people also do a full P&L budget, right? Full P&L budgets. So, if I look at everybody that I’ve worked with and the people that are charging for an outsourced chief financial officer, that is the biggest thing that they offer. Now, let me just be transparent on this and say that some people say that they’re doing CFO services, but really they’re just doing a lot of AP and AR support and they’re charging $4000 or $5,000 a month, but really they’re doing more bookkeeping than they are CFO. This is where you’re truly using the information, whether you created it or somebody else created it,  but you’re using that information to develop forward looking statements and have a meeting with that business owner to plan on how to increase sales, increase margins and hold their team accountable. 

You’re almost there, and the real value is in those conversations, which you and I have actually practiced a number of times on these calls, right? The forward looking statements you’re going to have to put together. The second piece to that is going to be the conversations, and that’s where you’re going to have to practice. I would say that you have to get better at that because of the way that we’ve spoken. To be honest, we all do, but you’re not going to get better at that without talking to people and trying. I’ll give you more of our training.

You go through our CFO training and our outsourced Chief Financial Officer boot camp training. You’re going to get a lot, but you cannot do it without getting out. It doesn’t matter how many pickup lines you read, you still got to talk to these girls, right? You’re going to fail. If you lost a couple of clients in the course of a two year period because the conversation has gotten stale, you’re going to learn way more by doing that then you are losing money from losing some of these recurring clients. So, forward looking statements, the conversation…what I really like to see is people that have something unique for a persona. You look at somebody like Brad, who has incentive plans for hygienists. Love that. You look at Tosha, who’s built out a strong offering for a nonprofit. You look at Tom, who really understands the project costing and profitability side of construction. 

These people are all doing it for a specific industry niche. Then you’ve got so many examples of that, I think where there’s an opportunity to create a lot deeper of a transformation. You can literally sit down with a construction company and ask them questions and be like, “Yeah, you guys have misestimated every job, and right now, based on the way you’re estimating your three jobs in the pipeline right now, it’s impossible to make gross profits. So here’s the estimations process you guys need to be using.” You are not expected to know that right now. And it’s pretty much impossible for that,  I don’t even know how to do that because it’s not my niche right now. It’s not my persona.

It’s not the people I’ve dedicated my life and my business to focus on. Once you get three clients doing this through the conversation, learn things from them, steal those things from them, regurgitate those things to other clients that are lacking them and keep learning, learning more and more about that persona. So that is the journey. You want it to be something that is easier than that, but I mean, there’s the exact templates for you to do forward looking statements and a cash forecast. 

That’s the other thing, too, cash forecast. There’s absolutely all the templates that all these other guys do. It’s the basics and where you really become valuable on the CFO side is your interpretation analysis and how well you are teaching that to your team. So, when these business owners get on the call every single month, be it 30 minutes or an hour, be it with you or somebody else from the team, they feel like they’re getting value and they’re growing in their business every single month. That’s where most of the value comes being an outsourced Chief Financial Officer.

 

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AccountingTax.com by Andrew Argue is now Corvee