Have you ever wondered what a CFO actually does? Maybe you’ve pictured someone sitting behind a mountain of spreadsheets, calculating mysterious numbers, and only surfacing for air when tax season rolls around. In reality, the life of an outsourced CFO is much more dynamic—and trust me, spreadsheets are only part of the story. From cash flow puzzles to strategic growth plans, my week is a whirlwind of challenges, decisions, and solutions that help businesses thrive.
Imagine this: on Monday, I’m untangling a cash flow crisis for a business that’s growing faster than its bank account can handle. By Wednesday, I’m helping another client navigate an insurance headache after a sudden rate hike. And by Friday? Well, I’m deep into pricing strategies for a service business trying to break into a new market. Every day presents a new puzzle, and I’m here to solve it—while making sure the business stays on course financially.
It’s like running a financial marathon, except every mile is a different challenge, and the finish line keeps moving. Being an outsourced CFO means I wear many hats: part financial strategist, part problem-solver, part coach. And if you’re curious about what that actually looks like in practice, you’re about to get a front-row seat into the week I just had. Let’s dive in.
Monday
Each Sunday night, I glance at my schedule for the upcoming week and convince myself I have a good handle on what it’ll look like. But by mid-week, I’m often joking with my wife that my schedule barely scratches the surface of what I actually do as an outsourced CFO.
This particular Monday was supposed to be filled with routine monthly financial reviews for my clients. Before each meeting, I typically go over my notes, review their financial statements, and jot down key points I want to cover. However, two unplanned events quickly altered my day. First, I was notified of a new meeting scheduled for Tuesday with a client interested in bringing on a third partner (more on that later). Second, the head of sales from one of my clients reached out, wanting to discuss the company’s sales forecast and pipeline for the rest of the year.
Strategic Financial Reviews
The financial reviews went smoothly, as expected. Typically, the first part of these meetings is dedicated to reviewing the numbers and updating the financial forecast. But the real value often comes from the strategic discussions that follow. We brainstormed ideas and set tactical steps to guide the business through the next 30 days. Later that day, I had the meeting with the sales lead. This wasn’t entirely unexpected—I had flagged some troubling trends the previous week, such as declining leads and a rising churn rate. The conversation focused on identifying clients likely to churn and developing strategies to refill the sales pipeline, ensuring the business stays on track.
Tuesday
The quickly scheduled partnership meeting on Tuesday is exactly why I love being an outsourced CFO. It’s real-life situations like adding a partner that allow me to craft unique solutions tailored to my clients’ needs. In these cases, it’s not just about the numbers; you have to consider the financial and tax implications while also navigating the human side of the equation.
Structuring Partnership Stakes and Growth
This client currently had two partners, and they wanted to bring in a third who, over time, would become an equal owner. The new partner was contributing part of another business, so we needed to determine what was “equitable” for their initial partnership stake. Additionally, we had to devise a plan to gradually equalize ownership shares over time. And of course, while all of this was happening, we needed to ensure each partner could maintain a livable wage during the transition.
After the meeting, I got straight to work creating a spreadsheet (because, let’s be honest, what CFO doesn’t love a good spreadsheet?).
Midday: A Board Meeting to Outline Growth
Later in the day, I had a call with the Board of Directors for another client to review their Q2 financial results and outline funding needs for the remainder of the year. This client is still in its startup phase, and while their technology is promising, they haven’t yet reached cash flow positivity. I ended the day by sending a weekly dashboard report to a manufacturing client. This dashboard tracks their liquidity and projects how much we’ll pay down—or borrow—against our line of credit in the coming week, based on accounts receivable and inventory cycles.
Wednesday
Every Wednesday kicks off with a weekly strategic “stand-up” call with one of my clients. In just a few minutes, we review the strategic objectives we set for the past week and plan for what we want to achieve in the next. We make sure these goals align with our broader quarterly objectives before wrapping up. As their outsourced CFO, I’m responsible for keeping them on track with their organizational strategies and ensuring they’re moving in the right direction.
Unexpected Legal Challenges
Immediately after, I had a call scheduled with another client’s attorney. This client is dealing with issues involving a subtenant, and we’re working on negotiating a “workout” arrangement so both parties can part ways amicably. Situations like this are common in my role as an outsourced CFO, where non-traditional accounting challenges crop up regularly. While there are financial implications, the real benefit of working with an outsourced CFO is the range of scenarios we can offer advice on, well beyond just the numbers.
Spreadsheets and Number Crunching
The rest of the afternoon was set aside for project work. On this particular day, I focused on a client interested in building a software program to complement their existing business. For the past three months, we’ve been talking to developers, contractors, and industry experts about their experiences with similar projects. Now, we finally have enough data to create a financial model to analyze potential investments, revenues, and costs. I spent the rest of the day building this model, preparing it for our upcoming review.
Thursday
The day started with a text while I was dropping my daughter off at school: “New oil vendor, need to re-look at budget.” This client has turned their EBITDA around from losing thousands each month to now seeing positive hundreds of thousands. A strict budgeting process has been a key driver of this improvement.
Budget Adjustments
I called the client, and they explained they had found a new supplier for one of their main materials. They wanted to assess the impact on their budget, specifically looking at improved margins and better payment terms. Fortunately, we had a model already built, so I was able to quickly make the necessary adjustments and share the updated numbers with them.
Cash Flow Strategy: Avoiding Common Pitfalls
Later in the morning, I had my weekly cash flow meeting with another client. On these calls, we review the current cash balance, expected inflows for the following week, and any payments due. A critical part of this process is reviewing A/R. While I review accounts receivable monthly for all my clients, strategizing around delinquent accounts is essential to avoiding cash flow issues.
Selling a Business
The afternoon featured a call with a client interested in selling one of their corporate franchise locations. We discussed how to approach the sale, potential valuation ranges, and how to separate the financials and allocate certain costs between their other operating locations. While an outsourced CFO isn’t always a valuation expert, most can provide a general sense of value and advise on structuring deals and key points to consider in the transaction process.
Friday
Friday started with the long-anticipated review of the financial model I’d built earlier in the week for a client’s software project. We had been collecting data from developers, contractors, and industry insiders for months, and now it was time to see how the numbers stacked up. On the call, we reviewed potential investments, projected revenue streams, and the expected costs associated with building and maintaining the software. We also discussed different scenarios, from best-case outcomes to more conservative estimates.
Filling the Gaps
After that, my schedule took a turn into some areas you might not expect a CFO to be involved in. First, I helped a client troubleshoot a resource issue. One of their key vendors who provides this software developer with support was experiencing staffing shortages, so we brainstormed alternative solutions and ways to mitigate the financial impact. In situations like this, an outsourced CFO plays a crucial role in problem-solving, ensuring the business remains financially stable while navigating operational challenges.
Employee Morale
Next up was an impromptu conversation about team morale. One of my clients was concerned that employee turnover was creeping up and wanted advice on how to tackle it. We dove into the cost of replacing staff versus implementing new retention strategies, like incentive programs or targeted raises. It’s not a typical CFO task, but most small business owners appreciate the partnership that builds and utilize it to discuss all sort of non-financial issues.
Recapping Victories
To round out the week, I sent a detailed recap to one of my clients, highlighting the financial progress we made over the past month. It included updates on everything from revenue targets to the latest A/R figures, along with some recommendations for the upcoming quarter.
So What Does an Outsourced CFO Do?
As you can see, the life of an outsourced CFO is anything but predictable. It’s a role that goes far beyond balancing the books and preparing financial reports. From strategic decision-making and forecasting to tackling unexpected operational challenges, being an outsourced CFO means adapting to the needs of each business, every single day. For small business owners, having someone who can provide financial clarity while also navigating the complexities of growth, partnerships, and even morale boosts is invaluable. It’s a partnership that fuels the success of the business and ensures they’re equipped to face whatever comes next.
Krieger Analytics Can Help
Krieger Analytics has several small business owners who rely on them as their outsourced CFO. These businesses range in size ($1M to $15M in sales) and industries. We are an expert in servicing small businesses because we have been entrepreneurs. Our expertise doesn’t just come from theory, it comes from practice.
Contact us now if you want to learn what a CFO can do for your small business. We’d love to see if we are a good fit and can help you accomplish your goals.