Do you ever wonder if your medical practice needs a chief financial officer? What if you could have the strategic financial guidance without the full-time executive price tag? Today's guest explains how fractional CFOs are helping healthcare practices thrive while letting providers focus on what matters most, patient care. This is episode #166 of the Thriving Practice with Tracy Cherpeski featuring Lizette Peña, Fractional CFO at Ascent CFO Solutions.
Taking a small company to middle-market or enterprise levels is a conversation of scaling—whether that means international expansion, technology, capital, or all the above. That’s why, at this stage, owners and CEOs often consider a private equity (PE) firm as the next step. A PE firm can inject the expertise, investment, and resources that can take a business to the next tier. But what makes a private equity firm interested in buying?
As a company accelerates into the early growth stage, new challenges and priorities arise. Many founders have met this initial success through mentorship, affordable junior talent, contract bookkeepers, and internet advice—an admirable accomplishment. But alongside this growth comes complexity, and the need for an elevated expertise. Whether it's Series A fundraising, risk management, or strategic forecasting, this complexity often prompts startup founders to question: Is it time for a full-time CFO? Founders want to think big-picture, but might lack the nuanced perspective—and hiring a veteran CFO full-time isn’t the only solution.
M&A activity is an exciting milestone for a startup or small business to reach. Having interested parties court you for a potential sale is a dream scenario for many founders. However, not all small and medium business CFOs are prepared to successfully manage an exit. Ascent CFO Solutions has put together a list of questions to help evaluate if your current CFO is up to the job, or if you need to bring in someone with additional experience.
CASE STUDY
Reside’s senior management team contacted Ascent CFO Solutions as they were preparing to make changes to their finance and accounting teams in 2023. Reside faced multiple complex challenges including:
Leadership: The need for an Interim CFO to quickly assume leadership onsite in Reside’s Bellevue, WA offices.
Operational Excellence: Leadership and execution for critical tasks such as board and investor reporting, bank reporting and partnering with Deloitte’s audit & tax consultants.
Talent Advisory: Interviewing and vetting permanent CFO replacement candidates as well as filling open headcount and backfills of recently departed employees.
Fractional CFOs and Interim CFOs are two types of outsourced CFO talent. Which type does your company need? It depends on the circumstances and how much support your team requires. Familiarize yourself with the terminology by learning what each role entails and when your company might enlist each type of outsourced CFO.
By Pam Wismer, Fractional CFO, Ascent CFO Solutions
This article was originally published in Construction Business Owner Magazine.
The very mention of fluctuating cash flow can cause anxiety for construction company owners. Without sufficient planning for a slow season, even seasoned businesses may find themselves in a cash crisis from time to time. While weather can be an obvious culprit for midsized general contractors — particularly those in nonresidential construction such as commercial, road and highway, or heavy construction — a slow season can also be related to factors such as project life cycles, regional labor shortages, or a poorly quoted or scoped job. In severe circumstances, a company must be strong enough to survive the cash drought without becoming insolvent and remain well-positioned for new projects as the market improves.
Consider these tips to financially prepare for and navigate an unexpected slow season.
CASE STUDY
Emergenetics came to Ascent CFO Solutions with 3 distinct challenges:
Five QuickBooks instances for each of their global entities operating in 3 currencies; USD, Euro and SGD.
A time-consuming expense management process.
No way to visualize the right financial information for the right people at the right time.
Here are the solutions that helped streamline their financial operations.
While navigating through times of rapid growth and expansion, businesses often encounter specific challenges that can sink the ship if not recognized and avoided. An experienced CFO can help businesses identify and steer clear of these hidden dangers, helping to ensure smoother sailing to financial success.
As someone who has spent 15 years in finance roles at Fortune 150 companies and another 12 years as a CFO for high-growth firms, I specialize in leading organizations through various phases of growth, circumventing the pains and risks that commonly go along with them. Whether with a VC-funded, PE-backed, or Founder-owned firm, many of the same challenges present themselves.
Here are some of the most frequently encountered challenges and how to avoid them.
In the dynamic landscape of business growth and expansion, having a rolling forecast plays a pivotal role in the strategic planning and decision-making processes. Unlike traditional static budgets that can become obsolete by mid-year, a rolling forecast enables companies to adapt to changing market conditions and scale their business effectively.
Let's explore 4 reasons why a rolling forecast is essential for companies navigating growth.
Selecting the right Chief Financial Officer (CFO) is a pivotal decision for any organization. Beyond technical proficiency, the ideal CFO possesses strategic vision, leadership acumen, and cultural fit.
Here are key interview questions to uncover these crucial qualities and ensure you're hiring the best candidate for the role.
Raising capital is a pivotal step for businesses aiming to scale, yet it's a journey laden with unexpected twists and turns. While the fundamentals are widely understood, there are several surprising aspects that entrepreneurs and CFOs should be aware of.
Here are seven insights to consider when embarking on the quest for funding.
As startups transition from the seed stage to Series A funding, strategic financial management becomes increasingly critical. While many founders initially handle finances themselves or rely on part-time assistance, knowing when to bring a Fractional Chief Financial Officer (CFO) into the fold can be a game-changer.
In the seed stage: resources are often tight, and founders wear multiple hats, including financial oversight. However, as the business gains traction and secures seed funding, the complexity of financial operations grows. This is the stage where a Fractional CFO can provide invaluable expertise in financial planning, budgeting, and establishing robust financial processes.
By the time a startup approaches Series A funding: the need for strategic financial leadership becomes more pronounced. Investors scrutinize financial metrics closely, and a solid financial strategy can be a key differentiator in securing funding. A Fractional CFO brings a depth of experience in navigating fundraising, preparing financial forecasts, and communicating financial insights effectively to investors.
A Fractional CFO offers scalability and flexibility, aligning with the evolving needs of the business. Instead of committing to a full-time hire, startups can access top-tier financial expertise on a part-time basis, optimizing resource allocation and minimizing overhead costs.
By engaging a Fractional CFO at the right time, startups can set a solid foundation for sustainable growth and financial success. Is this the right time for your business? Reach out: ascentcfo.com
Acquisitions represent both exciting opportunities and complex challenges for a business to navigate. As a key player in the acquisition process, the Chief Financial Officer (CFO) must possess a unique set of skills to ensure a successful outcome.
While CEOs and founders often take the lead in pitching to investors, the role of the Chief Financial Officer (CFO) in fundraising should not be underestimated. Here's what your CFO should be doing to ensure fundraising success for your company.
In today's dynamic business landscape, companies face multifaceted financial challenges that demand strategic expertise and guidance. Enter the Fractional CFO – a flexible, cost-effective solution providing invaluable financial leadership without the commitment of a full-time hire. Here's why your business needs one:
Many CEOs and company leaders know that there is a wealth of data within their organization that can help them gain essential insights to guide their company’s growth. So why does this data so often go underutilized? Why aren’t more leaders able to effectively use their organizational data to help them confidently make business decisions? In this article, we tackle three problems that hold companies back from harnessing the power of their data and identify solutions to help company leaders finally make their data useful and actionable for growing their business.
Nationally recognized Fractional CFO firm, Ascent CFO Solutions, launches an innovative, fully-customizable data visualization solution designed to provide greater visibility for CEOs and founders looking to expand and grow their businesses. Insights by Ascent CFO aims to accelerate the connection between a company’s abundant data and the leadership’s ability to make informed and timely decisions as they run the business and plan for growth. Leveraging innovative technologies, Insights by Ascent CFO is a fully customized solution based on a client’s data requirements and business needs.
Ascent CFO Solutions is excited to share a highlight video + full recording of our 2023 Denver Startup Week Session - Ask a Fractional CFO: Ascend to Your Next Stage of Growth! In this session, experienced Fractional CFOs discuss how their role helps entrepreneurs build sustainable businesses that are ready for their next stage of growth. Founders leave the session with a deeper understanding of how both a Fractional CFO and a firm understanding of their financials can help them reach their growth goals.
We are entering a new era where artificial intelligence (AI) is accelerating how efficient each of us can be. In the very near future, AI tools are going to be just as critical to all of our roles as a Google search. As CFOs and executives, it’s essential that we learn how to interact with AI effectively. In this article, Michael Leonardi, CPA, discusses where AI is now, where AI could be going in the future, and how you can be using AI to increase your efficiency right now.
