The Fractional CFO Focus Blog
How Much Cash Should a Small Business Keep in Reserve?
For small and medium-sized businesses, maintaining a healthy cash buffer is essential for long-term success. Whether you’re running a local service company, a SaaS startup, or a construction firm, having cash reserves gives you the freedom to weather downturns, cover emergency expenses, and pursue growth without added financial stress. But have you ever wondered, “How …
What the New 1099 Reporting Changes Mean for Your Taxes
The landscape for IRS 1099 reporting has changed significantly in 2025 due to new legislation. The One Big Beautiful Bill Act, effective July 4, 2025, brings higher reporting thresholds, reduced paperwork for many filers, and new compliance rules for businesses, freelancers, and gig workers. Major Changes: Higher 1099 Thresholds Form 1099-K (Third-Party and Card Payments): The …
Best Practices to Hire a Fractional CFO for Construction Companies
Running a construction company means balancing far more than projects and payroll. Between fluctuating material costs, seasonal cash flow, and complex compliance requirements, financial oversight can make or break a project. That’s where a fractional CFO comes in. A fractional CFO gives construction companies access to senior-level financial expertise without the full-time cost. They can …
10 Warning Signs of Employee Theft for Owners and CEOs
In a small or medium-sized enterprise (SME), trust refers to the reliance that owners, leaders, and employees place on one another to act with integrity, fulfill responsibilities, and support the company’s best interests. Trust in an SME is often built through close relationships, frequent interactions, and a sense of shared purpose—fostering collaboration, agility, and a …
The 5 Business Mistakes I See Over and Over (Even in $5M+ Companies)
You’d think that once a company reaches $5M+ in revenue, the biggest mistakes are behind them. But in over 30 years of working with CEOs, I’ve seen that even established businesses fall into a handful of recurring and valuation‑eroding traps. Let’s unpack them and how each affects the value buyers see in your business. 1. …
Is Your Cash Flow Forecasting Lying to You?
Cash flow forecasting is one of the most important tools a business can use—but also one of the most misunderstood. Many business owners believe they have a strong handle on their company’s cash position. They have a spreadsheet. Or maybe a report their bookkeeper runs each month. It feels like enough. But here’s the problem: …
Optimizing Manufacturing Key Performance Indicators (KPIs)
In today’s competitive manufacturing landscape, measuring and optimizing performance is crucial for success. This white paper outlines the essential key performance indicators (KPIs) that manufacturing companies should track and provide strategies for effective implementation. By focusing on these metrics, manufacturers can enhance productivity, quality, and profitability while driving continuous improvement across their operations. Introduction Manufacturing …
Construction Accounting Methods
When it comes to managing finances in the construction industry, traditional accounting simply doesn’t cut it. Project-based work, long timelines, and complex tax rules require specialized knowledge. For any construction CFO, choosing the right accounting method is essential for staying compliant, improving cash flow, and maximizing profitability. Below is a breakdown of the most common …
The Labor Market’s Cooldown
As the U.S. labor market cooldown continues through mid-2025, small businesses are navigating a landscape defined by lower hiring intentions, wage growth tapering, and lingering uncertainty about demand and costs. Through my – the strategic lens of a Fractional Chief Financial Officer, the impact of these shifts on operations, efficiency, cash flow, and profitability is …
Integrating R&D Tax Credits into a Holistic Tax Minimization Strategy
Research and Development (R&D) tax credits are a powerful tool for reducing tax obligations and supporting innovation-driven growth. When strategically integrated into a company’s overall tax planning, these credits can significantly enhance cash flow, lower effective tax rates, and provide a competitive edge. Understanding the R&D Tax Credit The R&D tax credit is a federal …
Mastering Cash Flow Forecasting for Manufacturing
For small manufacturers, cash flow forecasting isn’t just a financial task—it’s mission critical. With challenges such as long production cycles, upfront costs, and delayed receivables, one missed projection can stall operations or put growth plans at risk. But with the right systems and habits in place, forecasting becomes a powerful tool for planning and protecting …
5 Cash Flow Forecasting Tips for Small Businesses
For many small business owners, cash flow can feel unpredictable. Some months are steady, others are tight—and without a clear picture of what’s coming, it’s hard to make confident decisions. But cash flow forecasting changes that. It gives you visibility, control, and the ability to plan ahead. Here are five ways to strengthen your forecasting …
10 Functions This CFO Recommends Outsourcing to Scale Smarter
After decades in finance, one thing has become clear: small business owners wear too many hats. And while that hustle is admirable, it’s not always efficient—or sustainable. If the goal is to grow with clarity and control, outsourcing isn’t just helpful—it’s essential. Here are the top 10 business functions I recommend outsourcing to scale with …
The Real Cost of Employee Turnover
Employee turnover isn’t just an HR problem—it’s a financial one too. When employees leave, it costs time, money, and productivity. For Fractional CFOs and business owners, understanding the full cost of employee turnover is key to protecting profits and keeping things running smoothly. What Does Turnover Really Cost? When an employee leaves, the cost can …
10 Things a Business Owner Should Avoid at All Costs
Running a business is full of challenges, and while some mistakes are part of the learning process, others can seriously jeopardize your success. Whether you’re just getting started or managing a growing operation, understanding the most common pitfalls can help you stay focused, protect your investments, and build a strong foundation. Here’s a closer look …
5 Risky Moves When You’re Desperate for Business Cash Flow
When cash gets tight, it’s natural to start looking for creative solutions, but not all ideas are created equal. In fact, some “quick fixes” can dig the business into a deeper financial hole. Whether it’s raiding personal savings, overextending credit, or taking risky customer deposits, the short-term relief often comes with long-term consequences. If you’re …
The Evolving Role of a CFO
The role of the Chief Financial Officer (CFO) has undergone a significant transformation in recent years, evolving from a traditional financial steward to a strategic business partner. According to recent analyses, CFOs are now at the forefront of digital transformation, ESG initiatives, and strategic decision-making, while facing increased pressure and shorter tenures in their positions. …
Why you need a CFO and a CPA
While both CPAs and CFOs play crucial roles in financial management, they have distinct responsibilities and skill sets. Here are 10 reasons why you need a CFO and a CPA. Strategic Focus They take a holistic approach to financial planning, budgeting, and forecasting, which goes beyond the typical scope of a CPA’s duties. Leadership and …
The Value in Obtaining a Business Valuation
Q: What is the value of obtaining a valuation for Financial Planning For all business owners, a must have – understanding the value of their business plays a major role in determining whether they’ll reach their personal financial goals, should they exit. Only approximately 2% of business owners, know their business real value. Q: What …
3 Out of 4 Small Partnerships Aren’t Prepared for the Future- Are You One of Them?
A troubling statistic from Forbes reveals that a whopping 75% of small businesses lack a Buy-Sell Agreement. That’s like playing Russian roulette with your future and the future of your loved ones. Let’s face it, nobody wants to think about death or disaster, but when it comes to your business, having a plan in place …
Why Waiting Until It’s Broken Can Break Your Business
In the world of entrepreneurship, there’s a saying that if it isn’t broken, don’t fix it. While this mindset can save resources and maintain stability, it also risks stagnation and missed opportunities. By focusing on proactive strategies, entrepreneurs can protect their business’s fiscal health, optimize processes, and stay ahead of the competition. The Pitfall of …
Mileage Rates for 2024 Announced by IRS -Updated
The IRS has recently released the optional standard mileage rates for 2024. These rates are used to determine deductible costs when using a vehicle for business, charity, medical, or moving purposes. The rates are applicable to a wide range of vehicles, including those powered by gasoline or diesel, as well as hybrid and electric vehicles. …
Maximizing the Value of Your Variance Report (Budget to Actual):
Variance report is an essential tool for small business owners to gain insight into their financial performance and keep track of their expenses. It is a report that compares budgeted amounts to actual amounts, highlighting areas of over or under-spending. However, with so much data to consider, it can be difficult to interpret the results …
How to Create a Detailed Cashflow Budget
A cashflow budget is an important tool that every business owner should have. It helps to ensure that your business has enough cash to meet all its needs, including payroll, inventory, and other expenses. A cashflow budget can also help you identify potential cash shortfalls and take steps to avoid them. While creating a cashflow …
What are Virtual CFO Services?
Virtual CFO services refer to financial management and advisory services that are offered remotely, rather than in-person. This type of service is becoming increasingly popular as businesses look for ways to reduce costs and increase efficiency. One of the main benefits of virtual CFO services is that they provide a cost-effective solution for businesses that …
Budgeting is a crucial aspect of financial management
There are two main approaches to budgeting: driver-based budgeting (DBB) and zero-based budgeting (ZBB), both of which are known for improving FP&A processes. Each method has its own advantages and is suitable for different industries, depending on their specific characteristics and requirements. We will delve into the distinctions between DBB and ZBB and analyze why …
Hiring A Fractional CFO
Hiring a fractional CFO can be a game-changer for small business owners, startup founders, managing members, and CEOs. A fractional CFO brings expert financial management without the cost of a full-time executive. However, to make the most of this partnership, you need to know how to engage your fractional CFO effectively. Here’s a step-by-step guide …
