How Is a Fractional CFO Team Different Than My Internal Finance Team or CPA Firm?
Running a construction company is complex. From managing cash flow for large projects to juggling payroll and equipment costs, financial management plays a key role in success. As an owner-manager, you likely rely on your internal finance team and your CPA firm. But what happens when the financial challenges of your growing business require something more specialized? That’s where a fractional CFO team steps in.
Let’s break down the differences between your internal finance team, your CPA firm, and a fractional CFO service, while exploring how the latter complements—rather than replaces—the others.
The Role of Each Player in Your Financial Ecosystem
- Internal Finance Team
Your internal team handles the day-to-day tasks that keep your business running. This includes processing payroll, accounts payable and receivable, and ensuring your financial records are up to date. They’re the backbone of your company’s financial operations. - CPA Firm
Your CPA firm primarily focuses on tax preparation, compliance, and high-level accounting. Their job is to ensure your company complies with tax laws and financial regulations. They may provide strategic advice, but their scope is generally limited to periodic reviews and annual filings. - Fractional CFO Team
A fractional CFO team provides strategic financial leadership. Unlike your internal team or CPA, they focus on forward-looking analysis, such as cash flow forecasting, financial strategy, and optimizing profitability. They act as your financial guide, using real-time data and industry insights to help you make better business decisions.
Techniques for CFO Teams to Collaborate with Your CPA Firm
It’s natural to wonder how a fractional CFO service integrates into your existing financial ecosystem. One common concern is whether this creates overlap or tension with your CPA firm. The answer: not if the collaboration is handled properly.
Here’s how a fractional CFO service ensures smooth teamwork:
- Defining Roles Clearly
From the outset, a fractional CFO team outlines what they handle—financial strategy and forecasting—and leaves tax preparation and compliance in the CPA's capable hands. - Building Bridges, Not Barriers
The CFO team works with your CPA to provide accurate data and context. This includes clean handoffs during tax season or for audit preparation. - Leveraging CPA Expertise
Fractional CFOs often rely on CPAs for technical advice on compliance issues, ensuring the CPA’s role remains integral. - Joint Problem Solving
If your company faces financial challenges—like cash flow crunches—the CFO team collaborates with your CPA to create holistic solutions. - Promoting Transparency
Regular joint meetings keep communication open, so both the CFO team and CPA are aligned on your company’s financial health and goals.
By fostering cooperation, a fractional CFO service can strengthen, rather than alienate, the relationship you already have with your CPA firm.
Boosting the Performance of Your Internal Finance Team
Another way a fractional CFO service adds value is by elevating your internal team’s capabilities. Here’s how:
- Providing Training and Mentorship
A fractional CFO doesn’t just focus on strategy—they can train your finance team to adopt best practices in cash flow management, project budgeting, and financial reporting. - Streamlining Processes
Many internal finance teams are stretched thin or bogged down by inefficient systems. A CFO team identifies bottlenecks and introduces tools to save time and improve accuracy. - Integrating Technology
Construction businesses often have complex financial needs. A fractional CFO helps implement software that integrates project management with financial planning, giving your team more control over data. - Setting Financial Goals
CFO teams establish KPIs for your finance team to track, ensuring their work aligns with your broader business objectives. - Building Confidence
With expert guidance, your internal team gains the confidence to tackle complex financial tasks, from creating accurate job costing reports to preparing for audits.
By working alongside your internal finance team, a fractional CFO service acts as a multiplier—amplifying their effectiveness while keeping your operational costs under control.
Why It Matters for Your Construction Business
The construction industry is unpredictable. From fluctuating material costs to sudden project delays, financial clarity is essential. Your internal team and CPA firm do great work, but they don’t specialize in proactive, strategic financial leadership.
A fractional CFO team bridges the gap. They provide the expertise to optimize cash flow, improve profitability, and position your business for growth—all while working seamlessly with your existing team and CPA.
Take the Next Step Toward Financial Clarity
If you’re ready to tackle your business’s financial challenges head-on, let’s talk. At FarmGate Advisors, we specialize in empowering construction companies like yours with the financial strategies you need to thrive. Book a discovery call with us today and see how we can help your business build a stronger, more profitable future.
