For many growing businesses, managing finances effectively can be a major challenge. Hiring a full-time Chief Financial Officer (CFO) is often too costly, yet financial oversight is crucial for scaling and maintaining profitability. This is where fractional CFOs come in offering expert financial guidance without the full-time commitment.
In this episode of Building the Premier Accounting Firm, host Roger Knecht sits down with Shena White, a seasoned CFO and financial strategist, to discuss how fractional CFOs help businesses grow, avoid financial pitfalls, and prepare for long-term success. Shena shares her personal journey into the field and provides key insights into financial management, cash flow strategies, and exit planning.
Meet Our Guest: Shena White
Shena White is an award-winning financial expert specializing in CFO and advisory services. Her journey into financial consulting was shaped by a personal experience that changed her perspective on business finances.
“I used to own a contracting business, and about three years in, I found out my accountant had embezzled all of my tax money… I was devastated,” Shena recalls. “That experience forced me to take control of my business finances, and I was able to turn my company around from 4% to 24% profit in a single year.”
Today, Shena helps business owners optimize their financial operations, scale their businesses, and avoid the financial mistakes she once encountered. Her expertise lies in cash flow management, financial forecasting, and exit planning, making her a highly sought-after fractional CFO.
What Is a Fractional CFO?
A fractional CFO is a part-time financial expert who provides strategic financial guidance to businesses that do not require (or cannot afford) a full-time CFO.
Shena explains:
“You have your bookkeeper, who handles transactions and keeps records accurate. Then, you have your CPA, who prepares your taxes. But in between, you need someone looking at the financial data to guide decision-making and future planning. That’s where a fractional CFO comes in.”
Unlike bookkeepers or accountants, fractional CFOs focus on financial strategy, forecasting, and business growth planning. They help business owners:
- Analyze financial performance
- Develop profit-boosting strategies
- Manage cash flow and capital allocation
- Prepare for expansion, funding, or acquisition
How a Fractional CFO Helps Businesses Scale Profitably
Many businesses struggle with profitability, not because they lack customers but because they don’t manage their finances strategically. A fractional CFO helps businesses scale by optimizing cash flow, reducing unnecessary costs, and ensuring financial stability.
Shena highlights the importance of data-driven decision-making:
“Too many business owners make financial decisions based on gut feeling. A fractional CFO ensures you’re making decisions based on numbers—real financial data that tells the story of your business.”
Some key ways a fractional CFO supports business growth:
- Cash Flow Optimization: Ensuring the company has enough liquidity to cover expenses and invest in growth.
- Profitability Analysis: Identifying areas where revenue can be increased and expenses reduced.
- Financial Forecasting: Helping businesses anticipate future financial needs and risks.
Why Smart Businesses Choose Fractional CFOs Over Full-Time CFOs
Many business owners assume that hiring a CFO means committing to a six-figure salary. However, most small to mid-sized companies don’t need a full-time CFO—they simply need expert financial guidance at key moments.
“A full-time CFO can cost anywhere from $200,000 to $350,000 per year, which is out of reach for most small businesses,” Shena explains. “A fractional CFO gives you that same level of expertise but at a fraction of the cost.”
A fractional CFO is especially useful for businesses that want financial expertise without the high overhead costs.
Business Finance Mistakes & How to Avoid Them
Many business owners unknowingly mismanage finances, leading to cash flow problems, tax issues, and reduced profitability. Shena highlights some common financial mistakes:
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Poor Cash Flow Management
- “Cash flow is the lifeblood of a business. If you don’t manage it well, you can be profitable on paper but still run out of money.”
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Neglecting Financial Planning
- “You can’t just look at your bank balance to gauge success. You need financial reports and forecasts to plan ahead.”
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Underestimating Tax Obligations
- “Too many businesses underpay taxes, then get caught with massive bills later. A CFO helps you plan for tax liabilities before they become a crisis.”
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Not Having Emergency Reserves
- “Always have three to six months of cash reserves. Business downturns are inevitable, and financial preparedness keeps you afloat.”
The Role of a Fractional CFO in Preparing for Growth & Exit Strategies
For business owners looking to sell or scale their company, a fractional CFO is invaluable. Shena explains that preparing for an exit strategy requires years of financial structuring:
“If you plan to sell your business in the next 3-5 years, you need to show strong financial records, steady cash flow, and growing profitability. If you’ve spent years avoiding taxes and underreporting profits, your business will look less valuable to buyers.”
A fractional CFO ensures that businesses are financially structured for long-term success, helping owners:
- Increase company valuation before selling
- Secure funding from investors
- Implement profit-maximizing strategies
Final Thoughts
Hiring a fractional CFO is one of the smartest financial moves a business can make. Whether you’re struggling with cash flow, planning for expansion, or preparing for an exit, a fractional CFO helps you make informed financial decisions.
Want to learn more? Listen to the full podcast episode with Shena White here:
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