In these hugely volatile times, if you’re not thinking beyond tax planning to get strategic business advice, you’re doing yourself a disservice.
Your tax accountant helps you with tax planning & ATO compliance, but who do you turn to for the bigger questions on business strategy, growth plans, and maximising your bottom line?
Not your mates? Not ChatGPT? You need an experienced CFO with specialised skills across financial planning, stakeholder engagement, risk management, and beyond. Or a CFO Consultant, depending on the needs of your business.
Below are just 3 examples of the kinds of questions that business owners should be asking CFOs (not tax accountants or bookkeepers) to give themselves a competitive advantage:
Is there any benchmark data that can show me how I am doing against my peers?
The biggest advantage of consulting CFOs is that they are not in your organisation’s bubble. As well as understanding your financial position, they have a good macro view of what is happening with other businesses.
Ask your CFO Consultant (also called a Virtual CFO) for industry benchmark data to understand where you stand and set more realistic goals. Or stretch goals, if you're already in a good place! They will be able to compare your financials against industry averages and identify areas to cut costs, boost efficiencies etc.
Do you see any patterns in my financial reports that might turn into major business risks in the future as we scale?
Your CFO consultant will be able review your current practices and identify:
- where you may be overspending or
- not maximising your resources
- any inefficiencies in your processes
- unnecessary expenses
Good advice early can help you course correct sooner and stop it from becoming a bigger headache later.
Pro Tip: Ask your Consulting CFO to help you understand why and how they come to the conclusions they do so that you can watch out for those patterns in other areas or in the future.
Are we leveraging AI tools for maximum efficiency in our financial reporting process? Are there any risks?
We are now well and truly in the Agentic AI era and there is ALWAYS a faster, cleverer way of doing business. Your CFO Consultant will likely have great recommendations for software, workflows, and tools that boost efficiency and improve your numbers. So make sure to ask them.
If you have concerns around AI use in general or data security concerns, air these out too. Virtual CFOs will have a broad view of how AI is being used across the industry and may be able to address your concerns.
Pro Tip: Already spoke about AI at your last meeting? Ask again because new AI and automation tools are launching nearly every day these days, each one more sophisticated than the last.
How to get the most value from your Fractional CFO or CFO Consultant
Schedule in regular meetings: It might feel over the top, but better business outcomes will follow
You can get away with seeing your tax accountant once a year at tax time. But remember, the world of business is moving at the speed of light. And if you’re only getting business financial advice once a year, you’re setting yourself up to fail.
We recommend seeing your consultant regularly, possibly every quarter, so you can catch patterns early and course correct before issues become too big.
A skilled virtual CFO can ensure that ‘agility’ becomes a key characteristic of your business strategy.
Treat your fractional CFO like a coach and confidant
Your CFO Consultant should be more than just your ‘numbers guy’. Consider them your business and finance coach (working alongside your tax accountant.)
Make a list of business matters that keep you up at night and unpack them one on one. Get into the nuance: ask them to help you see it all. Good. Bad. Ugly.
Ask them the kinds of questions we’ve discussed above. In fact, anytime your entrepreneurial mind thinks up something brilliant, run it past your virtual CFO: they’ll be able to flag any risks straightaway. They’ll also help you get to ‘next steps’ much quicker than if you kept mulling it over in your own head.
They can also help you see what your near and long-term strategies mean for your stakeholder groups: weather that’s the bank, the board, your vendors, and more.
Choose your Virtual CFO well
If you’re going to invest time and effort into this relationship, you want to choose your Consultant CFO well.
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You want to look beyond tax planning and think more in terms of a trusted business advisor.
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Someone who has the right industry experience and depth of knowledge.
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Someone who is backed by a respected accounting firm that has stood the real test of time.
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You also want someone who is well connected with the industry.
Final thoughts on how consulting CFOs can help you scale your business
Competition, in business today, is cut-throat and the regulatory landscape is ever-changing. And while artificial intelligence ensures that information is everywhere, personalised business advice from an expert with real-life experience can be invaluable.
As someone who understands not only your financial position, but the business of business more broadly, regular consultations with your fractional CFO can be a huge strategic advantage.
Just remember to pick the right CFO Consultant for you and ask them all your big questions.
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