Blogs

Okay, that got your attention, didn't it?

Before you start typing angry comments, let me clarify: I don't hate the professionals who call themselves "Fractional CFOs." These are talented, experienced financial leaders doing excellent work for growing businesses. What I hate is the term itself.

As a CFO Partner with Seaton Hill, I've watched this "fractional" terminology spread through our industry like wildfire, and frankly, it's driving me nuts. Here's why I'm waging a one-person campaign to bring back a much clearer, more honest term: Outsourced CFO.

Why "Fractional" Makes Me Cringe

Think about it for a second. When you hear "fractional," what comes to mind? Math class? Incomplete pieces? Something that's broken into parts?

When a business owner tells their board, "We hired a fractional CFO," it sounds like they got 3/5ths of a finance leader or settled for someone who's only partially qualified. It's confusing, and worse, it undersells the incredible value these professionals bring to the table.

Compare that to "Outsourced CFO." Crystal clear, right? You've outsourced your CFO function to an expert who handles it professionally, completely, and cost-effectively. No math degree required to understand what that means.

The Reality of Outsourced CFO Services

When you work with an outsourced CFO, you're not getting a fraction of anything. You're getting:

• Complete financial leadership tailored to your business size and needs

• Strategic planning and analysis that drives real business decisions

• Full financial reporting and compliance without the overhead of a full-time salary

• Scalable expertise that grows with your company

• Immediate access to senior-level experience without the 6-month hiring process

Why Outsourcing Your CFO Makes Perfect Sense

Let's talk numbers (because, well, I'm a CFO). Here are the compelling advantages of outsourcing your CFO function versus hiring full-time:

Cost Efficiency That Actually Makes Sense

• A full-time CFO salary ranges from $150,000 to $400,000+ annually, plus benefits, equity, and overhead

• Outsourced CFO services typically cost 30-60% less while delivering the same strategic value

• No recruitment fees, no severance packages, no awkward performance reviews

Expertise Without the Commitment Issues

• Access to professionals who've worked across multiple industries and business stages

• Benefit from experience gained through dozens of other client situations

• No learning curve – they hit the ground running from day one

Flexibility That Grows With Your Business

• Scale services up during growth phases, M&A activity, or fundraising

• Scale down during slower periods without layoffs or restructuring

• Adjust focus areas based on changing business priorities

Fresh Perspective, No Office Politics

• External viewpoint unclouded by internal politics or "that's how we've always done it" thinking

• Objective analysis of financial performance and business operations

• Direct, honest feedback without worrying about job security

Risk Mitigation You Can't Get Internally

• Professional liability insurance and established processes

• Backup support when your primary contact is unavailable

• No single point of failure in your financial leadership

THE BOTTOM LINE

Whether you call it fractional, outsourced, part-time, or contract CFO services, the value proposition remains the same: access to senior-level financial expertise without the full-time commitment or cost.

But let's call it what it is. When you outsource your marketing, you don't call it "fractional marketing." When you outsource your IT, it's not "fractional technology." You're outsourcing a critical business function to specialists who can do it better, faster, and more cost-effectively than you can in-house.

So here's my modest proposal: let's retire "fractional CFO" and embrace "outsourced CFO." It's clearer, more professional, and accurately describes the comprehensive service these financial leaders provide.

Your business deserves complete financial leadership, not fractions. And the professionals providing these services deserve terminology that reflects the full value they bring to your organization.

What do you think? Are you team "fractional" or ready to join the "outsourced" revolution? 

________________________________________

Ready to explore how outsourced CFO services can benefit your business? Let's have a conversation about your financial leadership needs.

Author: J. Harrell

Let's address the elephant in the room that's keeping some finance executives awake at night.

If you’re a CEO considering whether an AI-driven accounting platform can replace the need for an in-house or outsourced CFO strategist, read on. You may be asking yourself, 'Why invest in a CFO when AI can seemingly do the same job at a lower cost?' This is a growing conversation among mid-sized business owners who view AI as a potential silver bullet for their financial challenges."

Here's the truth: AI will transform the CFO role, but replace it? Not even close.

What AI Actually Does Well:

Let me be clear—AI is revolutionary for certain finance tasks: 

• Data Processing: Lightning-fast transaction categorization and reconciliation 

• Pattern Recognition: Spotting trends in massive datasets humans would miss 

• Routine Reporting: Generating standard financial reports in seconds 

• Forecasting Models: Running complex scenarios with multiple variables 

• Compliance Monitoring: Flagging potential issues before they become problems

What AI Can't Do (And Probably Never Will):

 But here's where the AI hype train derails: 

• Strategic Thinking: AI can't decide whether to pursue that acquisition or pivot your business model 

• Relationship Building: Try having AI negotiate with your bank or explain cash flow issues to worried investors 

• Context and Nuance: AI doesn't understand that your "bad" quarter was actually strategic investment for long-term growth 

• Crisis Management: When your biggest client doesn't pay and payroll is due Friday, you need human judgment, not algorithms 

• Leadership: AI can't inspire your team or align financial strategy with company culture

The Real Future: AI-Powered CFOs 

Smart CFOs aren't being replaced by AI—they're being amplified by it.

I use AI daily in my practice at J-Ventures. It handles my data crunching so I can focus on what matters: helping CEOs make million-dollar decisions, structuring deals, and building financial strategies that actually work in the real world.

Think of it this way: calculators didn't replace accountants—they made them more powerful. AI is the same evolution, just bigger.

Why This Actually Benefits You:

 If you're a business owner wondering about this AI vs. CFO debate, here's what you need to know:

• Better Value: AI-enhanced CFO services deliver faster insights at lower costs 

• Deeper Analysis: We can now dig into data that was impossible to analyze manually 

• Real-Time Intelligence: No more waiting weeks for financial reports 

• Strategic Focus: Less time on mundane tasks means more time on growth strategy

The Bottom Line: 

AI is making CFOs better, not obsolete. The future belongs to finance leaders who embrace technology while delivering the human insight, relationship management, and strategic thinking that drives business success.

Your business still needs financial leadership. It just got a serious upgrade.

A robot can tell you what happened to your money. An AI-powered CFO tells you what to do next.

Let’s Be Honest:

If your business is profitable, the idea of hiring an outsourced CFO may feel like fixing a problem that doesn’t exist. You’ve got money in the bank, customers coming in the door, and no red flags waving from your accountant. So… why bring in another advisor?

SIMPLE: Because being profitable is not the same as being optimized.

As a CFO, my role is to work with business owners who may have waited too long to bring in strategic financial leadership—not because they were struggling, but because things were “good enough.” Then a market shift, acquisition opportunity, or internal challenge exposed how much money, momentum, or value they had unknowingly left on the table.

Let me clarify what an outsourced CFO actually does:

• We uncover inefficiencies that chip away at margins

• We analyze customer and product profitability—down to the penny

• We stress-test your pricing strategy, capital structure, and cash flow plan

• We prepare you for investor conversations, due diligence, or a high-stakes expansion

• We deliver forecasts, budgets, and scenario planning tools that drive growth—not just keep score

And we do all of this at a fraction of the cost of a full-time CFO hire.

If your company is generating strong revenue but lacks financial clarity, objective analysis, or strategic direction, the cost of not having a CFO can be far greater than the cost of engaging one. Even profitable companies can overspend, underprice, miss scaling windows, and stall their valuation because no one was truly leading the financial strategy.

Here’s the bottom line:

You shouldn’t wait until your business is broken to bring in a CFO. You should consider bringing one in when it’s working—and you want to scale smarter, stronger, and with fewer blind spots.

Whether you call it fractional or outsourced, the goal is the same: to deliver complete financial leadership that moves your business forward without the full-time overhead.

If you're wondering whether now is the right time, let’s talk. I’ll ask the hard questions, bring the honest insights, and help you see what your numbers are trying to tell you.

Your business may be healthy—but is it reaching its full potential?

Picture this: A $3M company has been "cash flow positive" for 18 months. The owner is celebrating, planning expansion, maybe even considering that new Benz.  But dig deeper into the numbers, and you'll find they're actually losing $200K annually and heading toward a cliff.

This scenario plays out more often than you'd think. Here's the truth some business owners may not realize: Positive cash flow can mask dying businesses!

The Illusion Explained

Cash flow measures money in vs. money out. Profitability measures whether you're actually creating value. They're completely different animals.

EXAMPLE: 

• Company sells $100K product, gets paid immediately 

• Product costs $80K to make, but supplier gives 90-day payment terms 

• Cash flow: +$100K today 

• Actual profit: +$20K...?

What if that product actually costs $120K when you factor in overhead, depreciation, and true labor costs? Though transactional cash flow is positive, you are losing $20k per sale! Terrifying, right?

The Hidden Dangers

Inventory Buildup: You're buying faster than you're selling, but cash from old sales makes it look healthy.

Deferred Expenses: Accounts payable growing while receivables come in creates false positives.

Asset Liquidation: Selling equipment or collecting old receivables boosts cash but isn't sustainable.

The Red Flags I Watch For: 

• Rising inventory levels with "good" cash flow 

• Growing accounts payable despite strong collections 

• Declining gross margins masked by payment timing 

• Cash increasing while equity decreases 

• Working capital getting consumed while cash looks healthy

The Real-World Impact

This pattern can destroy businesses that look "successful" on paper. Picture a manufacturing company with $500K in the bank but unknowingly losing money on every major contract due to poor cost accounting. Or a service business showing great cash flow while burning through working capital at an unsustainable rate.

The wake-up call usually comes during due diligence for a sale or loan application. Suddenly, sophisticated buyers or lenders start asking about unit economics, true profitability, and sustainable cash generation. That's when the house of cards collapses.

Why This Matters Now

In today's economy, banks and investors dig deeper than cash flow. They want to see sustainable profitability, predictable unit economics, and healthy margins. When reality hits, it hits hard—and fast. Companies that seemed financially healthy can find themselves scrambling to explain why their "profitable" business can't secure funding or attract buyers.

The Fix

Get both reports monthly. Cash flow tells you if you can pay bills this month. Profitability tells you if you should stay in business long-term. You need both, and you need someone who understands the difference and can spot the warning signs BEFORE they become crises.

Don't let positive cash flow lull you into a false sense of security. The companies that survive understand this distinction. The ones that don't... well, they become cautionary tales.

Here's what some small business owners get wrong about their financial team:

They think it's an either/or decision. Either hire a bookkeeper OR upgrade to a CFO. But that's like asking whether you need a foundation OR an architect for your house.

Your bookkeeper and fractional CFO aren't competitors—they're the ultimate accounting dream team.

Your Bookkeeper: The Foundation Expert

 A skilled bookkeeper is worth their weight in gold: 

• Daily transaction recording and categorization 

• Accounts payable and receivable management

• Bank reconciliations and cleanup 

• Payroll processing and tax preparation

They keep your books clean, compliant, and current. Without them, you're building on quicksand.

But Here's What You Shouldn’t Expect Your Bookkeeper To Do: 

• Strategic financial planning and forecasting 

• Cash flow optimization and scenario modeling 

• Pricing strategy analysis and margin improvement 

• Banking relationships and capital structure planning 

• Financial due diligence for acquisitions or funding

Enter the Fractional CFO: Your Strategic Quarterback.  While your bookkeeper maintains the scoreboard, your fractional CFO calls the plays: 

• Transforms clean data into actionable business intelligence

• Identifies profit leaks and growth opportunities your books don't reveal

• Builds budgets and forecasts that drive decision-making 

• Structures deals, financing, and strategic partnerships 

• Prepares you for investor conversations or exit planning

Here's What This Looks Like In Practice: 

Picture a $2M manufacturing company with excellent bookkeeping—every transaction coded perfectly. But they could be losing $150K annually on their largest product line due to hidden overhead costs their books can't capture.

The data is accurate. But it takes CFO-level analysis to uncover when a "profitable" product is bleeding cash once you factor in true labor allocation.

Why This Combo Is Unstoppable: 

• Cost Efficiency: Fraction of a full-time CFO salary with strategic capability 

• Data Integrity: Clean books + strategic analysis = bulletproof insights

• Specialization: Each role does what they do best—no overlap, no gaps 

• Peace of Mind: Complete coverage from daily ops to long-term strategy

The Bottom Line: Your bookkeeper keeps you compliant. Your fractional CFO keeps you competitive. Together, they create financial infrastructure most small businesses only dream of—at a price that makes sense.

Stop thinking either/or. Start thinking both/and.

Ready to build your financial dream team? Let’s talk!

Author: J. Harrell

Here's a reality check: If your company is generating $10M in revenue but struggling with cash flow, inaccurate financials, and no strategic financial roadmap, you don't just need a bookkeeper or controller—you need a CFO. But not necessarily a full-time one.

THE 90-DAY TRANSFORMATION: What a Fractional CFO can deliver working just 2-3 days/week

Here is a structured approach that may be used for a business in need of cash flow management, improved financial insights, budgets and financial forecasts:

PHASE 1 (Days 1-30): Financial Triage

 We stop the bleeding immediately by stabilizing cash flow, eliminating overdrafts and missed payments, cleaning up inaccurate financials from your current bookkeeper or controller, and identifying quick, actionable cost savings. Goal: Overdrafts eliminated by day 45. 

PHASE 2 (Days 31-60): Build the Foundation

We implement real-time cash flow forecasting, introduce KPI-driven dashboards with accurate monthly reporting, and establish a working budget and operating plan your business has never had.

PHASE 3 (Days 61-90): Strategic Lift-Off 

We align your financial operations with long-term goals, deliver a 12-month strategic forecast with scenario planning tools, and help leadership focus on scaling profitably through data-informed decisions.

THE MEASURABLE OUTCOMES

Our approach delivers immediate impact with cash flow positive results within 60 days, measurable outcomes including expense reduction and financial reporting accuracy, practical solutions addressing each pain point with concrete deliverables, growth-focused systems that balance crisis management with sustainable growth planning, and clear ROI through cost savings and improved profitability.

COST VS. VALUE DELIVERED

Hiring a full-time CFO typically costs $250K+ annually. Our clients engage us only as needed—whether hourly, daily, project-based, or via monthly retainer for 1-4 days per week. That's executive-level strategy with variable cost control.

THE BOTTOM LINE

Cash flow gets stabilized, financial visibility gets unlocked, and decisions get backed by data instead of gut feeling—all for a fraction of full-time CFO costs.

Remember: Bookkeeper does not equal CFO. Controller does not equal strategy. Fractional CFO equals moving from crisis to clarity.

Author: J. Harrell

2026 Budget Season Is Here... Your Competition Has a CFO and Is Ready to Go—Are You?

Budget season isn't about spreadsheets—it's about strategy. And without a CFO guiding that strategy, you're flying blind into 2026.

It's October 2025. Q4 just started. And right now, your competitors with CFOs are already stress-testing their 2026 budgets, building contingency plans, and positioning themselves to dominate next year.

Meanwhile, some business owners are still thinking, "I'll get to the budget in December." By then, it's too late.

**The Q4 Budget Reality Check**

Every year, I watch the same pattern unfold:

- November: "We need to start budgeting soon."

- December: Panic mode—rushing to throw numbers together between holiday parties.

- January: Budget is already outdated because assumptions were wrong.

- March: Abandoning the budget entirely because it doesn't reflect reality.

What a Real 2026 Budget Process Looks Like

1.  Strategic Planning: Aligning financial targets with business objectives—not just adding 10% to last year's numbers.

2.  Scenario Modeling: Building best-case, worst-case, and realistic-case scenarios so you're ready for anything.

3.  Department Alignment: Getting sales, operations, and finance on the same page BEFORE commitments are made.

4.  Cash Flow Forecasting: Knowing exactly when you'll need capital and planning accordingly.

5.  KPI Development: Establishing metrics that actually drive decisions, not vanity numbers.

Here's 3 Budget Tips to Start Today

1. Review Your 2025 Actuals vs. Budget: Where were you off by more than 15%? Those gaps reveal planning blind spots that will repeat in 2026 if unaddressed.

2. Identify Your Top 3 Growth Drivers: What will actually move revenue next year? Budget around those, not wish lists.

3.  Calculate Your True Break-Even: Factor in ALL costs—overhead, depreciation, owner compensation. This number guides every other decision.

HOW A FRACTIONAL CFO CHANGES EVERYTHING

Here's what fractional CFO clients get that DIY budgeters may miss:

1. Cross-Industry Insights: We've seen what works (and what fails) across multiple businesses.

2. Objective Analysis: No emotional attachment to pet projects—just cold, hard financial reality.

3. Time Efficiency: What takes you weeks takes us days because we've built the frameworks.

4. Banking Relationships: When you need financing in 2026, having a CFO-built budget opens doors.

5. Real-Time Adjustments: We don't build budgets and disappear—we're there when reality diverges from plan.

Your Competition Isn't Waiting

While you're debating whether you "need" a CFO, your competitors are already positioning for 2026. They're locking in strategic hires, securing credit lines, and building war chests.

Budget season is here. The question isn't whether you'll budget—it's whether you'll do it right.

Author: J. Harrell