Why every growing business needs a fractional CFO (and how to know when it's time)

As the founder and CEO of Sum of All the Numbers, a fractional CFO and financial planning company, I've seen countless business owners struggle with the same challenge: they know their business inside and out, but they're flying blind when it comes to their financials.

During my recent conversation with Jon Dwoskin on Think Business Live, I shared insights that I wish every entrepreneur understood about financial leadership. If you're a small to medium-sized business owner wondering whether you need CFO-level expertise, this conversation might change how you think about your numbers.

The lonely reality of business ownership

Here's something most people don't talk about: business owners feel incredibly alone at the top. You can't discuss your financial concerns with your spouse because of the stress it creates. You won't share the details with colleagues because you don't want to show vulnerability. And often, there's nobody inside your company who truly has the big picture in mind.

This is where a fractional CFO becomes invaluable. We look at your numbers like a doctor examines symptoms — objectively, without emotion, but with the expertise to see patterns and problems that aren't obvious to you.

Most business owners know their operations perfectly but don't know which key numbers to track or what trends to watch for. That's not a failure. It's simply not where their expertise lies.

The 3 financial metrics every business owner must track (starting today)

When I work with clients, I focus on specific leading indicators that tell the real story of business health. The most crucial one? Gross profit.

Your gross profit number tells me everything I need to know about whether you're priced correctly and if your margins can sustain growth. Too many business owners think they're running a "$3 million company" when they're only keeping 35% of that revenue. Once I know your true gross profit, I can determine if your operating expenses align with your company's actual size.

Here's the scary truth: a 1% change in gross profit can crush your entire business because of the downstream effect on cash flow. That's why monitoring this metric isn't optional. It's survival.

How smart forecasting turns uncertainty into strategic advantage

We'd all love a crystal ball for business planning, but the next best thing is solid forecasting based on historical trends and scenario planning. With today's technology, it's easier than ever to model different outcomes and see where you'll land cash-wise under various circumstances.

The key is thinking in scenarios: "What if things go this way? What if they go that way?" This approach transforms forecasting from guesswork into strategic planning.

💡 Quick action step: If you're feeling overwhelmed by your financial management, you're not alone. Connect with our team for a free consultation to identify your biggest financial blind spots.

Hidden business expenses that are killing your profit margins

During our conversation, we talked about expense management, and I can't tell you how often I discover business owners paying for things they don't even remember signing up for. The subscription model is designed to make you forget about that $10 monthly charge. When you add up all those forgotten subscriptions — plus the inevitable collection of unused domain names — you're looking at thousands of dollars annually.

But here's where it gets serious. After we eliminate the low-hanging fruit, the tough decisions usually involve people. Payroll is typically the biggest expense, and if we want the business to survive the next five years, sometimes we have to make difficult choices about staffing.

The key question I always ask is: "What's the immediate consequence to the business if we cut this expense right now?"

This is where many entrepreneurs hit a wall. They'll say, "But I'm going to make another $100,000, then that expense will be fine!" My response? "Let's put a time limit on that goal and discuss what we'll do in the short term while this expense is pulling the company down."

Lessons from my grandfather's entrepreneurial wisdom

My approach to business was shaped by my Armenian grandfather, who hitchhiked from California's Central Valley to San Francisco during the Depression, determined to control his own destiny. He taught me that quality matters. I can't count how many times he made me remove staples and re-staple papers until they were perfectly straight.

His most powerful lesson? "Don't let your money be tied to the time you have." He understood that sustainable wealth comes from investment opportunities, not just trading hours for dollars.

This wisdom directly influences how I approach client relationships today. When I work with clients now, I treat their business like my own baby. That level of care and attention to detail doesn't just serve that one interaction. It builds trust that extends to every aspect of their entrepreneurial life. Many of my clients have multiple businesses they didn't initially mention, and that quality-first approach opens doors to becoming their trusted advisor across all their ventures.

Your next step: know your numbers

If there's one thing every business owner can do today to increase profits, it's this: truly understand your financial statements. Don't just file them away or glance at them briefly. Look forward to receiving them. Scrutinize them with a red pen. Set real goals around the numbers you're seeing.

You don't need to become an accounting expert, but you need to know what your numbers are telling you about your business's health and trajectory.

When to consider a fractional CFO

Most companies reach out to us during a crisis or when facing major decisions. Rarely does someone call when everything is going perfectly, because when things are smooth, you're not looking for someone to think differently than you do.

If you're in a place where you need to grow, you're seeing concerning trends, or you simply need expertise to look at your business differently and push you forward, that's when fractional CFO services bridge the gap between doing it all yourself and hiring a full-time executive.