What Do Small Business CFOs Really Do?
If you’d like your small business to thrive, a Chief Financial Officer or CFO is an invaluable resource. Contrary to popular belief, a CFO is not a bookkeeper or accountant. Essentially, they use their deep financial expertise to analyze data and develop solid strategies that can help you meet (or even exceed) your goals. You can think of them as your own personal financial consultant.
Unlike bookkeepers and accountants who focus on recording transactions and preparing financial documents, CFOs analyze the numbers. They look at the big picture to make it easy for you to understand how your business is financially so you can continuously improve.
A Small Business CFO is Within Reach
You may be surprised to learn that a small business CFO won’t cost you an arm and a leg, as long as you outsource them. With GrowthLab, you can enjoy a CFO along with accountants, bookkeepers, and other pros all for the price of a single full-time employee. You can enjoy a full-stack finance team and don’t have to worry about paying an in-house sky-high salary and benefits.
Benefits of a Small Business CFO
Here are several of the many ways a small business CFO can benefit your small business.
Financial Intelligence
While you focus your time and effort on running your business, they can dive deep into pricing, performance data, and achieving realistic revenue and profitability goals. Their financial intelligence may be just what you need to steer your business toward unparalleled growth and success.
Forecasting
Forecasting refers to an estimate of the future financial outcomes for your business. A CFO can perform forecasting on your behalf so you allocate your resources accordingly. Without forecasting, you’ll find it difficult to gain valuable insights into your past performance and establish realistic goals.
Expert Advice
In a perfect world, your small business would never face financial challenges. Since this is very unlikely, a CFO is a wise investment. They can provide the expert advice you need to overcome poor cash flow and profitability, high overhead, overwhelming debt, high client churn, and so much more.
Scaling
When it comes time to scale your business, a CFO may guide you toward the right direction. They can ensure that your financial infrastructure is good to go. You can also trust them to apply for multi-state registrations, figure out the most cost-efficient tax structure, and find capital from the right lenders and investors.
Succession Planning
Succession planning can identify the future leaders of your company and create a program that will prepare them for their new roles. If you’d like your business to continue for years to come, succession planning is a necessity rather than simply an option. You can turn to a CFO to help you decide your company’s management needs in the future.
Do You Need a CFO? Here’s How to Tell
Here are signs your business is ready for CFO-level support:
- Cash flow is unpredictable – You’re constantly worried about making payroll
- Your business is growing fast – Revenue is up, but so are expenses
- You need funding – You’re preparing for an investment round or loan application
- Financial reports confuse you – You don’t know how profitable your business really is
- You’re making decisions reactively – Without data-driven planning
CFO Pricing
We bring world-class people and process to your management team. Our team's focus is 100% on helping you define and execute on your business goals.
At a lower price-point, we add greater value than an individual fractional CFO because we leverage our full-stack finance and accounting - all under one roof.
At GrowthLab, we help small businesses like yours succeed. We can pair you with a CFO team that serves as a valuable extension of your management team. Since we don’t believe in one-size-fits-all solutions, we’ll take the time to get to know your particular needs and design the ideal CFO strategy for your unique business.
More CFO & Finance Resources:
🔹 What is a Fractional CFO?
🔹 How a CFO Can Optimize Your Cash Flow
🔹 Scaling FP&A: How to Productize Financial Advisory
Frequently Asked Questions
What is the difference between a CFO and an accountant?
An accountant focuses on bookkeeping, financial statements, and tax compliance, whereas a CFO provides strategic financial guidance to help a business grow, manage cash flow, and plan for long-term success.
Related Read: What Does a Controller Do?
When should a small business hire a CFO?
You should consider hiring a CFO if:
✔️ Your business is growing quickly, and financial complexity is increasing
✔️ You struggle with cash flow management or need help with budgeting and forecasting
✔️ You’re planning for fundraising, an acquisition, or expansion
✔️ You need strategic financial insights beyond what a bookkeeper or accountant provides
How much does a small business CFO cost?
The cost of hiring a CFO varies. A full-time CFO typically costs between $150,000 – $300,000 per year, while a Fractional CFO provides similar expertise at a fraction of the cost.
Compare pricing options: GrowthLab’s CFO Pricing & Service Tiers
What is a Fractional CFO?
A Fractional CFO is an outsourced financial expert who works with a business on a part-time or project basis instead of being a full-time hire. This allows businesses to access high-level financial expertise without the cost of a full-time executive.
Full guide: What is a Fractional CFO?
How can a CFO help improve cash flow?
A CFO helps by:
✔️ Forecasting cash needs using a 13-week cash flow model
✔️ Optimizing accounts receivable & payable to ensure steady cash flow
✔️ Identifying cost-saving opportunities without sacrificing growth
✔️ Securing funding or financing for expansion
Can a small business benefit from part-time CFO services?
Yes! Many small businesses don’t need a full-time CFO but still require strategic financial guidance. A part-time or fractional CFO helps businesses scale without the overhead of a full-time hire.
More on CFO services: The Benefits of Integrated FP&A, Tax, and Accounting
What industries benefit most from a CFO?
CFO services are valuable for any industry, but they are particularly beneficial for:
- SaaS & tech startups (subscription revenue, ARR modeling)
- Ecommerce & retail (inventory, cash flow management)
- Manufacturing (cost control, financial efficiency)
- Professional services (pricing strategies, profitability management)
Industry insights: Accounting for SaaS: Common Mistakes & Best Practices
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GrowthLab, a Finance-as-a-Service (FaaS) company serving founders and management teams with full-service Financial Planning & Analysis, Monthly Accounting, Virtual CFO, HR-People Advisory, and Business Tax.