In today's episode, Dan Cooper invites Ben Olsen of Tarsus CFO Services to delve into the often confusing world of financial roles within a business. We discuss the differences between a bookkeeper, a controller, and a CFO, and why understanding these distinctions is crucial for any business owner. With wit and expertise, Ben provides clear insights into how these roles contribute to a company's financial health and strategic growth.
We explore topics such as the typical responsibilities of each financial role, when and why a business might need a controller versus a CFO, and the impact of efficient financial management on business decisions. Ben also shares practical advice for businesses experiencing growth pains and offers tips on how to assess your current financial setup to determine if you need additional expertise.
0:00-1:53
Dan Cooper introduces Acumen, the Sharpen Podcast, and today's topic: accounting versus strategy, or the difference between a CFO, a bookkeeper, and a controller. Ben Olsen, from Tarsus CFO Services, shares how his firm provides fractional CFO and accounting services to companies. Tarsus aims to fill the gap for companies needing high-level financial expertise without the cost of a full-time CFO. Olsen explains the importance of having someone who can offer strategic financial guidance, especially for growing companies.
1:53-4:48
Olsen emphasizes the importance of core values and financial discipline in business. He draws parallels to personal health, explaining that just as maintaining good physical health requires consistent effort, so does financial health in a company. This involves regular check-ins, strategic planning, and ensuring that financial processes align with the company's core values.
4:48-7:01
Olsen outlines common financial challenges faced by companies, such as managing cash flow, understanding financial statements, and strategic planning. He explains how many business owners focus on sales and growth but often neglect the financial infrastructure needed to support that growth. This can lead to issues like cash shortages or unanticipated financial problems.
7:01-9:09
Olsen stresses the importance of financial forecasting in business. He explains that forecasting helps companies anticipate future financial needs and challenges. This allows them to make informed decisions and avoid potential pitfalls. Olsen also highlights the role of a CFO in guiding this process and ensuring that forecasts are accurate and useful.
9:09-12:30
Olsen talks about the need for building financial literacy within the organization. He believes that everyone, from top executives to front-line employees, should have a basic understanding of the company's financial health. This helps in making better decisions and aligning efforts towards common financial goals.
12:30-14:20
Olsen discusses the importance of implementing robust financial systems. These systems help in tracking financial performance, managing budgets, and ensuring compliance with regulations. He advises companies to invest in good financial software and tools that can automate and streamline financial processes.
14:30-15:13
Olsen identifies the causes of delays in closing books, such as waiting for sales team receipts. He suggests evaluating people, processes, and systems to identify and resolve inefficiencies, emphasizing timely decision-making.
15:20-15:44
Improving efficiency in closing books enhances business operations, allowing for more timely and relevant decisions. Using outdated data for decisions is detrimental; improving efficiency leads to better performance.
15:54-17:12
Olsen advises considering the value a CFO brings rather than the expense. A full-time CFO is suitable if the organization can handle the influence and changes they bring. Otherwise, consider alternative resources.
17:13-18:29
Olsen explains that a good CFO asks critical questions about financing new initiatives rather than halting progress. They ensure the organization is prepared for growth and help navigate sudden opportunities or challenges.
18:47-19:28
Olsen emphasizes the need for proper investment in finance and accounting. Viewing these areas as potential value creators rather than cost centers can lead to better insights and informed decisions.
19:30-21:23
Olsen provides general salary ranges for controllers and CFOs, noting recent inflation. Controllers' salaries start at $100,000 and can go up to $150,000, while CFOs' salaries start at $150,000 with additional compensation like bonuses and equity incentives.
21:32-24:28
Olsen explains the benefits of using fractional CFOs for part-time financial leadership. Assessing the organization's needs and goals helps determine the level of financial expertise required, avoiding unnecessary full-time hires.
24:33-26:32
Olsen advises joining an Acumen group and asking questions to understand needs and find the right financial leadership. Finding a person with good rapport and necessary technical expertise is crucial for navigating financial challenges.
26:39-28:32
Olsen finds fulfillment in helping people through difficult situations with integrity and grace. Working with Acumen provides opportunities for personal and professional growth, as well as the chance to spread positivity and support.
28:37-29:55
Olsen concludes by summarizing key points and providing contact information for Acumen and Tarsus. He encourages businesses to invest in the right financial leadership for growth and success.