This month we welcomed Steven, who joined Azure Group as a Director of Business Accounting and a CPA-qualified fractional CFO with three decades of commercial advisory experience. He combines professional-practice technical expertise with more than 20 years of helping SME owners and directors successfully grow their businesses.
By translating financial data into business insights that reveal what’s really driving performance, Steven supports clearer, more-informed strategic decisions and sharper results. His expertise spans sectors such as manufacturing, wholesale, hospitality and professional services.
Here he explains how, as a fractional CFO, he partners with ambitious owners of small and medium-sized businesses to achieve their goals of scaling – and why he’s so passionate about it.
Q. What is a ‘fractional CFO’?
A. A fractional CFO provides the same high-level financial insight and strategic support as a full-time chief financial officer but at a much smaller cost. It is a perfect option for growing businesses that do not yet need a full-time hire or have budget restraints. Fractional, outsourced or virtual CFO? These are all different ways of describing the same thing. An assignment could be for 1-2 days per month or 1-2 days per week – it all depends on the business support needed.
Q. When should a business engage a virtual CFO – is there a ‘right’ or ‘wrong’ time?
A. As a business owner, the ‘right’ time to engage a virtual CFO is when you need peace of mind that your numbers are accurate and the clarity that comes from understanding the levers to pull to improve business performance. That said, there is no ‘wrong’ time to reach out and have a conversation about your business challenges and how a virtual CFO can support your strategic goals.
Q. How do you use your expertise to help small and medium-sized business?
A. It starts with confidence – providing visibility over financial performance that gives clarity to make better decisions and the confidence to build a plan that will achieve their financial goals. From there, I act as a business partner to support improving financial performance and executing on strategy. This trusting relationship adds financial value through improved results but also the intangible value that comes from peace of mind knowing you have a financial expert who knows your numbers.
Q. What does the relationship with your clients look like?
A. It’s a relationship based on trust and candid conversations about what is and isn’t working in the business. This works best when I understand the goals and ambitions of my clients, so I can ensure the business has the financial foundations to achieve those objectives. It requires regular contact but should never be intrusive or interrupt the day-to-day running of the business.
Q. What is a common mistake that SMEs make?
A. Typically, I see business owners relying on their bookkeeper or junior accounting staff to provide strategic business analysis and support. It is unlikely that they have the depth of experience or confidence to do this and, at worst, could lead to making suboptimal business decisions. Engaging a fractional CFO to support the onsite team is the smart way to avoid this.
Q. Give us an example of a business you worked with that benefited from hiring a virtual CFO.
A. I recently started working with a small business in the real estate industry that had a great reputation for servicing clients and was always busy. However, cash flow was tight and the business owners did not have to confidence to pay themselves a proper wage. They were worried that all their hard work was for nothing. I reviewed the last two years’ financials and diagnosed the reasons for tight cash flow, which were poor margins and not having a clear budget for how much to invest in growth. We analysed customers and market segments and devised a price increase that could be supported with minimal impact on sales. This boosted bottom-line profits and cash flow. We then built a 12-month rolling forecast that predicted profits and cash flow, giving clarity over how much could be reinvested into growth and the extent to which the business could support salaries for the business owners. Three months in and the business owners already have peace of mind that they are on the right track, and they can look forward to a successful year.
Q. Any advice for those thinking about taking the next step to grow their business?
A. Know your numbers – make sure you know what drives financial performance and which levers you can pull to make improvements. From there, make a plan and build a budget – if you don’t know where you want to get to, how will you know when you have got there?
Q. Why are you passionate about this work?
A. I love working with small businesses because that's where I can have the most impact and it is these business owners who need the most support. I’m passionate about building trusting professional relationships with my clients and helping them achieve their dreams.
"This trusting relationship I have with clients as a fractional CFO adds financial value through improved results but also the intangible value that comes from peace of mind knowing you have a financial expert who knows your numbers."
Connect with Steven Nicholson at 📩 snicholson@azuregroup.com.au or call Azure Group for more information 📲 (02) 9238 1188
This article is intended to provide general information only and is not to be regarded as legal or financial advice. The content is based on current facts, circumstances and assumptions, and its accuracy may be affected by changes in laws, regulations or market conditions. Accordingly, neither Azure Group Pty Ltd, nor any member or employee of Azure Group or associated entities, undertakes responsibility arising in any way whatsoever to any persons in respect of this alert or any error or omissions herein, arising through negligence or otherwise howsoever caused. Readers are advised to consult with qualified professionals for advice specific to their situation before taking any action.
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