If you have a bookkeeper or controller, do you still need a CFO?

     Bookkeeping and controller work are absolutely essential when it comes to responsibly running a nonprofit. They're not just important, they're required. Bookkeeping, though, focuses on the past. So, for example, it's asking questions like:

•  How did last month go?
•   What was our revenue?
•   How did we manage our expenses? 

     Well, having someone who can answer these questions is extremely important and absolutely  essential. 

How is a CFO different from a controller or bookkeeper?

     Yet, most nonprofit leaders really need to be looking into the future. You see, bookkeeping is like the “rear-view mirror” in which we look at what already happened. But, the forward-looking future work is about where we look through the “windshield.” It’s how we visualize the road to the destination rather than the road we just traveled. This is how we answer questions like:

•   Can we afford to hire staff next quarter? 
•  What should we do this month to increase our budget? 
•  How long do we have cash to sustain us if _____ happened or if the cost of _____ went up?

     Well, the answers to those questions really shape your nonprofit’s goals and strategic initiatives and ultimately impact your sustainability. Without clear answers to these type of questions, nonprofits typically start making decisions that are based more on gut instincts than data and ultimately lead organizations away from their intended destinations or leave them paralyzed by the unknown. Both of those situations decrease your effectiveness. 

Hiring a Nonprofit CFO is a Challenge! 

     When nonprofits realize they need more help to start looking forward financially, they face two significant challenges when trying to hire for this CFO (Chief Financial Officer) position: 

1.  They don't need a full time CFO.
2.  Hiring someone like this on a part-time basis costs more than what the organization can afford. 

The Fractional CFO

So, that's where a Fractional CFO comes in!

     A Fractional CFO is an expert guide in nonprofit finances, yet at a fraction of the time and a fraction of  the pay of what it would otherwise cost the nonprofit. So what does this Fractional CFO role do?

•  helps to provide clarity through expert financial guidance
•  helps to understand numbers so that you can make data-driven decisions
•  becomes an executive level partner who helps with accountability and leadership in the financial area and supports strategic decision making

      So, if your nonprofit is struggling with clarity in the finances and needs that strategic level leadership, I want to invite you to consider the benefits of a fractional CFO, which is exactly what I do! I'd love to explore whether I could be a help to your organization to equip you to thrive in this time. If you're interested, connect with me here and let's explore what's possible!