If you’re a company with $5-$50 million in sales, what’s the best way to manage your finances?
A) Do it yourself
B) Hire a full-time controller
C) Hire a fractional CFO
D) None of the above
We believe the correct answer is D. Read on for the Hoover Financial solution.
The traditional finance team at a big company is run by a CFO with a controller and accountants underneath. That works great for Pepsi and Tesla, but not Joe’s Metalworks.
A relatively recent trend that has tried to solve this problem is the fractional CFO model. In this model, you hire an independent or firm-based fractional CFO who splits their time between your company and a few others.
This can work well, but the downside is the CFO can end up doing work that would usually be done by a lower-level controller or accountant. Or, if you just hire a fractional controller, you don’t get the critical, big-picture guidance of a CFO.
The HF model fixes that. When you sign with our team, you are assigned a highly experienced controller who is your main contact and ensures your daily accounting is running smoothly and your monthly reports are accurate and meaningful.
Behind this controller is our expert team of CFOs who guide and support your controller with key issues. They are also available for direct meetings and projects if needed. This allows you to “skim the cream” of a fractional (or even full-time) CFO.
We call this the Controller Oversight + CFO Access model. This gives you the expertise of an experienced corporate finance team at a small company price point.
In the early days of HF, we used to tell businesses that the HF model could generate 70% of the value of a full-time CFO for only 30% of the cost.
Those were the old days.
In time, we’ve realized our approach generates about 130% of the value of a full-time CFO. In other words, even if it would cost more (it doesn’t) to hire us, your company would be value ahead.
Why is that?
A full-time CFO only works with your company’s 1) industry, 2) software, 3) management style, 4) banking situation, etc.
Our team is exposed daily to multiple versions of all those factors. In working with companies across America, we stay abreast of leading ideas and financial strategies.
Each new company we serve benefits from this extensive street experience. Our team draws from the best ideas to develop customized solutions for your company and style.
That is the value proposition of the HF model. We’ve taken the Fractional CFO model and given it an extra twist: by providing you with an expert controller with access to an experienced CFO, we match the needs and resources perfectly, keeping costs low while still providing you with the benefits of a CFO.
Our process is designed to provide you with financial clarity and peace of mind. Here is a look at how we partner with your company, from our initial onboarding to our ongoing strategic guidance.
An experienced HF Controller is assigned to your company and will serve as your primary contact. This controller is responsible for understanding your business and becomes an integral part of your team. The controller is responsible to:
From day one, your controller is supported by our entire CFO team. Our CFOs provide direct input and guidance to all HF controllers, ensuring you benefit from a wealth of strategic experience.
This foundational period is focused on addressing immediate challenges and building a solid accounting process for the future.
Please Note: Improvements in the timeliness and clarity of your financials usually occur after this initial phase is complete.
Once the new processes are in place, we transition to providing consistent, high-level financial management. As our partnership continues, you can expect:
Stop making decisions by instinct. Timely, accurate monthly financials allow you to make decisions based on fact.
You’re not in business to manage finances. Your passion is finding solutions for your customers. Hoover Financial’s CFO services free you to do what you do best.
From yearly projections to banking advice to high-level tax strategy and help with pricing, you’ll be propelled to the next level.
In addition to monitoring your monthly numbers, we teach you how to understand and apply them.
A great chart of accounts is foundational to great financial reporting. Streamlining your COA is where we start.
Amazing clarity can often be gained through accurate tracking of key divisions or product groups.
All balance sheet accounts trued up to match reality, and revenue/expense accounts aligned for the correct month. This monthly cadence is a must for any company, but particularly for project-based companies.
Clear reports and solid data are no good without understanding. Our deep experience and national exposure allow us to unpack the story behind the numbers by providing industry benchmarks and highlighting key trends.
We’ve written several articles that go into greater detail about business finances and the value of a CFO.
