It’s always a bit bittersweet when we’ve done such a great job that our services are no longer needed—handing over to an internal Finance Manager is part of the value a Fractional CFO provides. Our role is to build a solid, compliant finance function with best-practice processes and procedures, ensuring a seamless transition when it’s time to pass the baton. That said, we’re never far away should high-level strategic financial advice be needed.
So, what does a Fractional CFO engagement look like when a CEO brings us in?
A new CEO often doesn’t know what’s ‘under the hood’ when stepping into an organisation. They need a trusted senior finance partner to conduct a thorough review of all finance and compliance aspects while working alongside the executive team to provide ongoing strategic financial advice. An incoming CEO typically has three months to identify any financial or compliance risks, report them to the Board, and present a strategy for resolution.
Common issues we uncover include:
- Errors in financial reports, particularly balance sheets that are incorrect or not up to date.
- ASIC compliance gaps.
- Taxation compliance issues, including FBT, Payroll Tax, GST, and ESOP.
As part of every engagement, we conduct a full Tax & Compliance Health Check across each business and entity within the group. We then implement technology-driven compliance solutions to ensure accuracy and efficiency moving forward.
We also prioritise enhancing monthly financial reporting. Many businesses lack accurate monthly cutoffs and key financial reports, which CEOs need for sound decision-making. We review and rectify balance sheets, ensuring a clear understanding of the organisation’s assets and liabilities. Based on our health check, we address any outstanding compliance tasks.
Additionally, we develop accurate budgets and cash flow forecasts (including scenario planning) that align with strategic objectives, supporting the CEO in Board presentations. We ensure the CEO has a clear understanding of the business’s key financial drivers, underlying assumptions, and potential risks if those factors shift. We also provide visibility into monthly cash burn, enabling informed decisions on raising additional capital and the optimal timing for funding rounds.
We assess all financial and accounting systems, ensuring best-in-class processes are in place for day-to-day accounting operations. In some cases, we step in to replace or supplement bookkeeping and payroll functions. Accurate bookkeeping and payroll are non-negotiable—garbage in, garbage out, and that’s simply unacceptable when it comes to financial data.
If you’re a new CEO stepping into an SME business—or an existing CEO questioning potential financial risks within your organisation—reach out to our team. We’re here to ensure you can sleep soundly at night.