đ„Showdown: Fractional vs Productized CFO
PLUS: Firm management best practics and how to level up your Excel game.
Hey there đÂ
In today's email, hereâs some tips to help you escape the accountantâs trap.
đ„The 8 growth areas in accounting
đ„Showdown between a Fractional CFO and a Productized CFO
đ„11 best practices for firm management
đ„ How to level up your Excel game
đ„A FP&A book review
Whatâs the accountantâs trap you ask? You're in the trap if the only way to get paid more is to work more hours or take on more low-value and high-demanding clients. At the same time, you can't raise your fees because there's always a competitor willing to do the same work for less.
8 GROWTH AREAS IN ACCOUNTING
Accounting Today recently posted the top growth areas in accounting. Here they are:
Client Accounting Services (CAS) and Fractional CFO Services
Niche development and expansion services
Financial statement audits (for eventual sale of the business)
Asset and wealth management
Advisory services
Back-office services
Client system controls review
Exit and estate planning
If you want to check out what the author has to say about each one, click here to read the entire article.
đThe Bottom Line
Notice that every single one of these growth areas are helping the client have a better future. Not simply be a ârecorder of the pastâ. So, if you want to get more clients and retain clients, youâve got to be someone that can help the client get what they want.
As Zig Ziglar says: âYou can have everything in life you want, if you will just help enough other people get what they want.â
SHOWDOWN:
FRACTIONAL vs PRODUCTIZED CFO
Fractional CFO Services have been around a while. Productized CFO Services, well, not so much.
However, if youâre even remotely thinking about offering CFO or advisory services we strongly suggest you take a look at offering Productized CFO Services over Fractional CFO Services. Hereâs whyâŠ
What is a Fractional CFO?
Someone who offers a fully customized engagement for each client they work with. This allows the client to get the benefits of an executive without having to pay for one.
What is a Productized CFO?
Someone who offers the same deliverables to each client they work with. This allows the client to get the benefits of an executive without having to pay for one.
Whatâs the Difference?
The outcome for the client is the same: they get the benefits of an executive without having to pay for one.
However, the way you perform the service is totally different. A Fractional CFO service is not scalable, whereas a Productized CFO services is scalable.
With a Fractional CFO Service:
Each client will feel like a part-time job. Thus, youâre limited to the number of clients you can take on.
Itâs much harder to delegate aspects of the engagement to your team because youâre performing, essentially, a job - not a systematized process.
If any one client leaves, it could be major hit to your revenue.
With a Productized CFO Service:
Youâre performing the same set of deliverables for each client which means you can earn more without having to work more.
You can delegate aspects of the engagement to your team (or the entire engagement!) since the processes are all documented.
You can take on more clients without incurring substantially more costs (which is the definition of scalable).
đThe Bottom Line
The winner in this showdown is Productized CFO Services. Youâll be able to take on more clients (thus earn more) without a substantial increase in costs (your time + your employeeâs time).
The CFO Project has a free training on how to scale your practice through Productized CFO and Advisory Services next Tuesday. Click the button below to learn more and to RSVP.
11 BEST PRACTICES FOR FIRM MANAGEMENT
CPA Charge has published a free eBook on 11 best practices for firm management. Whether you own an accounting, tax or bookkeeping firm, checkout their free eBook.
This eBook contains 7 best practices for billing and payments and 4 best practices for security and compliance. Youâll learn how to:
Increase receivables by updating your approach to billing, payments, and client management
Evaluate the needs of prospective clients in relation to your resources
Keep your practice safe and in compliance by adopting the right policies and technology
YOUR VOTE
Which of the following do you value the most in your practice?Click on your choice to register your vote! |
LEVEL UP YOUR EXCEL GAME
Our friends at Excel University are offering a great offer for our subscribers. They have a âBuy One, Get One Freeâ for their Masters 1 and Masters 2 courses.
You buy the Masters 1 course, and get the Masters 2 course for free.
Hereâs what youâll learn:
In Masters 1, youâll learn:
Power Query
Power Pivot
Power BI
Table and Graph Design Practices
In Masters 2, youâll learn:
How to build macros with VBA (Visual Basic for Applications) so you can automate repetitive, routine tasks.
Not only will you learn Power Query, Power Pivot, and VBA, but completion of both courses will also earn students the Excel University Masters Certification and 46 CPE.
THE BOOK REVIEW
Adam Lean here. As one of the writers of Escaping the Accountantâs Trap (and being the Co-Founder of The CFO Project), I love reading and recommending books that I like.
I recently read a book called Financial Planning & Analysis and Performance Management.
Hereâs my take on it and whether or not I think you should read it.
â±ïž The 10-Second Summary
Itâs a book that explains how a FP&A department is supposed to function and how itâs supposed to provide value to the business.
đWhat I Liked
Itâs divided into clear sections so that you can sort of pick & choose which topics you want to learn about (although, I read it from front to back cover).
The author breaks down concepts in a way that most people can understand.
It comes with downloadable spreadsheets.
đWhat I Didnât Like
As an entrepreneur and advisor to small businesses, most of the FP&A functions simply werenât that relevant or applicable to me.
The author tends to present a topic from either a 50,000 foot view or a 1 foot view (where you get lost in the weeds). Thereâs not a lot of in-between.
Major lack of âhow toâ implement each of the concepts. The author presents the ideas and but doesnât really explain how to use it in the real world.
Click here to check it out on Amazon (no, we donât earn affiliate commissions):
đThe Bottom Line
You should read this book if:
(a) you work for (or advise) a larger organization.
(b) you want a good overview of FP&A skills.
(c) youâre a nerd like me who loves reading business & financial concepts.
JUST FOR FUN
We all feel this one đ€
We â€ïž Accountants.
We â€ïž Bookkeepers.
Escaping the Accountantâs Trap newsletter is created with love by a team of accountants, marketers and business experts.
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