התמלול המלא של FD or CFO?

even businesses that are simple, don't need five days a week of that caliber of judgment. 00:04:47.759 --> 00:04:50.800 They just need the right part of it at the right time. 00:04:51.360 --> 00:04:54.079 And it isn't only about this ongoing support piece. 00:04:54.240 --> 00:04:56.720 Fractional work also covers project work. 00:04:56.959 --> 00:05:02.160 You may have a fundraise coming up, a system as implementation, or preparing for due diligence. 00:05:02.319 --> 00:05:07.439 Or maybe you simply just need someone in to help build the forecast and build the budget quickly. 00:05:07.759 --> 00:05:11.120 You bring in the right skills for the project for as long as it takes. 00:05:11.279 --> 00:05:13.920 And when it's done, it's done. 00:05:14.319 --> 00:05:19.360 And this is where kind of CSG finance and where I found myself in a number of different areas. 00:05:19.600 --> 00:05:26.800 Often I can be brought in just to help with doing a five-year plan, perhaps, or just perhaps building out the budget. 00:05:27.040 --> 00:05:32.879 These are very fixed-term projects, often fixed fee, and once the project's done, I move off to somewhere else. 00:05:33.040 --> 00:05:36.720 But the business has exactly what it needs when it needs it. 00:05:37.759 --> 00:05:44.240 And I guess when we're talking about bringing in skills, the question is what skills are they that the businesses might need? 00:05:44.639 --> 00:05:49.360 And when we think about finance, it's a good way to think about this in three separate layers. 00:05:49.680 --> 00:05:51.600 The first layer is bookkeeping. 00:05:51.759 --> 00:05:57.279 This is the day-to-day recording, reconciling, and filing that you'd expect of accountant. 00:05:57.839 --> 00:06:07.120 The second layer is analytics and control, making sense of what's been recorded, reporting it well, and keeping a grip on cash and performance. 00:06:07.360 --> 00:06:13.199 And the third layer is strategy, the big decisions around pricing, funding, growth and deals. 00:06:13.439 --> 00:06:17.519 Sometimes when you're looking at upskilling, the business only needs one of those layers. 00:06:17.759 --> 00:06:21.839 It might be strong underneath and weak at the top, or the other way around. 00:06:22.160 --> 00:06:28.160 The business that's building its finance function more or less from scratch may need to look at bringing in all three. 00:06:28.639 --> 00:06:32.560 And the good news is that fractional support can work at every level. 00:06:32.879 --> 00:06:35.120 The point is that it isn't all or nothing. 00:06:35.439 --> 00:06:40.240 The sensible way to buy finance help is to match the level to where the business actually is. 00:06:40.560 --> 00:06:42.560 The top player, if that's the gap. 00:06:42.800 --> 00:06:45.279 The whole stack, if that's the gap. 00:06:45.519 --> 00:06:48.319 And not ripping out a setup that's already working. 00:06:48.879 --> 00:06:54.000 So if the question is about skills rather than titles, how do you work out which ones you need? 00:06:54.319 --> 00:06:59.439 Go back to the three layers bookkeeping, analytics and control, and strategy. 00:06:59.680 --> 00:07:01.519 I've got one question for each. 00:07:01.839 --> 00:07:04.000 Don't worry, you won't need a spreadsheet for this. 00:07:04.160 --> 00:07:08.319 And if you're driving or walking the dog, just have a think about these in your head. 00:07:09.040 --> 00:07:11.199 Layer one, the bookkeeping. 00:07:11.360 --> 00:07:13.120 We call that the foundations. 00:07:13.759 --> 00:07:16.480 Do the basics happen accurately and on time? 00:07:16.879 --> 00:07:21.360 Transactions recorded, accounts reconciled, filings made without a scramble. 00:07:22.240 --> 00:07:25.199 If the answer's no, that's your starting point. 00:07:25.360 --> 00:07:29.120 Because everything above it is only ever as good as what sits underneath it. 00:07:29.759 --> 00:07:32.959 Layer two, which was the analytics and control side. 00:07:33.360 --> 00:07:39.360 Do you get the numbers you trust quickly and efficiently and quick enough to act? 00:07:39.680 --> 00:07:47.199 Not just accounts that satisfy the tax team, but a monthly picture of where you make money, where you don't, and where your cash is going. 00:07:47.519 --> 00:07:54.639 If you're finding out how last month went halfway through the current month, or you don't quite believe the figures, that's your gap. 00:07:55.360 --> 00:07:59.759 And then we move on to the final layer, layer three, strategy. 00:08:00.240 --> 00:08:07.600 When you're about to make a big decision, like a hire, a price change, or a new product, does anyone see you pressure test the numbers with you? 00:08:07.839 --> 00:08:10.639 Or is it you, your instincts, and a spreadsheet? 00:08:10.879 --> 00:08:16.800 And could you explain right now where your cash will be in six months and what would change that picture? 00:08:17.040 --> 00:08:19.040 So here's how to read your answers. 00:08:19.199 --> 00:08:20.480 Work from the bottom up. 00:08:20.720 --> 00:08:27.839 The first layer where you hesitate is your starting point because the layers above it can't do their job properly until you get that layer right. 00:08:28.480 --> 00:08:32.480 And you may find your foundations are solid and your gap is right at the top. 00:08:32.639 --> 00:08:36.799 In that case, you're not short of bookkeeping or even of a full finance function. 00:08:36.960 --> 00:08:40.320 You're short of one specific skill at one specific level. 00:08:40.399 --> 00:08:45.600 And that's a much smaller, more targeted thing to go and find than most founders would assume. 00:08:46.000 --> 00:08:47.840 And there's one more thing I'd like to bring up. 00:08:48.000 --> 00:08:53.360 This isn't a one-off test, because your answers today won't be your answers in three months' time. 00:08:53.679 --> 00:09:00.559 Win a big customer, go out for fundraising, take on a big team, or even start thinking about an exit. 00:09:00.639 --> 00:09:04.240 And the layer that was fine can suddenly be the one that presents the gap. 00:09:04.399 --> 00:09:07.360 So what you need now isn't what you'll need in three months. 00:09:07.519 --> 00:09:09.759 And that's exactly the point I'm coming from. 00:09:10.000 --> 00:09:15.519 Come back to these questions on a regular basis and let the support flex with the answers. 00:09:19.039 --> 00:09:22.480 So I guess that's ultimately why I set up CSG Finance. 00:09:22.639 --> 00:09:27.039 I've worked in a lot of businesses wearing both hats, playing both sides of that coin. 00:09:27.200 --> 00:09:31.840 And over time it became clear to me that the all or nothing approach didn't work for every business. 00:09:32.080 --> 00:09:37.279 I often had a seat where I sat as a CFO but spent a lot of time doing basic bookkeeping. 00:09:37.440 --> 00:09:40.159 Some businesses only need this level of skill at key moments. 00:09:40.399 --> 00:09:46.879 Others are smaller or less complex and only need that top-level thinking a few days a week, or even a few days a month. 00:09:47.039 --> 00:09:51.919 And for others, the cost of a full-time top-layer finance person is simply out of reach. 00:09:52.240 --> 00:09:56.320 CSG finance has been created to help bridge that gap. 00:09:56.559 --> 00:10:02.960 Whether that's just at the higher level or whether the base layer in the middle layer needs some support too, hopefully we can help. 00:10:03.200 --> 00:10:08.240 So the next time someone asks whether they need an FD or a CFO, I gently reframe it. 00:10:08.639 --> 00:10:10.399 Don't ask about a title. 00:10:10.559 --> 00:10:13.919 Ask what skills you need, at which layer, and when. 00:10:14.159 --> 00:10:16.559 You don't have to rip up what's working to get them. 00:10:16.639 --> 00:10:19.440 And what you need now, expect it to change. 00:10:19.679 --> 00:10:25.919 And before you commit to a full-time hire, ask yourself, do I really need that five days a week? 00:10:28.000 --> 00:10:30.080 Well, thank you for listening to the podcast today. 00:10:30.320 --> 00:10:33.600 Next time I want to talk about growth and what happens when it goes wrong. 00:10:33.759 --> 00:10:35.519 Scaling without breaking. 00:10:35.840 --> 00:10:39.919 Because the businesses that struggle most when they grow are rarely the ones without ambition. 00:10:40.080 --> 00:10:44.159 They're the ones who tried to build the top floor before the foundations were really ready. 00:10:44.320 --> 00:10:50.960 So we'll look at the foundations and why they have to come first and what those foundations really look like in practice. 00:10:51.360 --> 00:10:53.120 See you in the next episode.