AI for Accounting and Finance Blog

Does today's outsourced CPA firm need a crystal ball to help their clients proactively? And does the choice of accounting systems affect the firm’s ability to forecast trends and identify opportunities?

Time is your most precious asset, but do you know how to leverage it to work smarter? As a business owner, you have dozens of decisions to make every day that can waste your time - or maximize it.

In the olden days, accountants wore a green eyeshade and looked for every infraction, down to the penny. But with today’s large, high volume transactions, is it worth doing a detailed review of your client’s expenses? The answer is a resounding, maybe, as long as you are looking for the right expenses.

One of your first jobs as a fractional CFO will be to understand the inflows and outflows of the organization. But what lies behind your client’s revenue and expenses? In a word, contracts. The business world no longer runs on handshakes, but on lengthy, complex, written documents that you should review.

Whether you’ve just started as an outsourced CFO or you’re an old pro, you’ll always find a fresh perspective by interacting with your client’s business partners. Insurance brokers, bankers, and vendors can provide a unique viewpoint that is hard to find inside your client’s office. 

The balance sheet contains a wealth of information and tells a story about your client’s business. But are your clients looking at the story behind the numbers? Accounts receivable, inventory, and other assets and liabilities will paint a picture of what’s going well - and what hidden factors need addressing.

Labor is typically the largest expense for a business, often comprising between 50% to 70% of the company's budget. Unless you validate current wages, time and attendance, and market comparisons, your client’s company may be paying more than necessary.

It’s important to live in the moment, but successful companies must also predict their future. A fractional CFO is a valuable asset to any management team that depends on a sound forecast to make critical business decisions for the next quarter, year, and beyond.

Profitability is just one of the many goals of a successful business. But even the best CEO may be in the dark when it comes to knowing if their business is sailing along - or quietly sinking. That’s why an outsourced CFO can be a valuable asset to a management team.

In a recent webinar, Top 10 Outsourced CFO Quick Wins, we asked owners of accounting firms about the cash flow status of their clients. Nearly 75% said their clients had so-so cash flow, 17% were flush, and 9% were an accident waiting to happen.  These results echoed a common theme: businesses have a hard time managing cash and lack understanding of their dynamics.