How to Choose the Right Outsourced CFO: Expert Advice for Startups with John Frazier

Extraordinary Pursuits by BIP Ventures

Outsourcing your CFO could be a game-changer for your company as it allows you to access expert financial guidance without the hefty cost of a full-time executive. An outsourced CFO can help you navigate complex financial challenges, optimize cash flow, make informed strategic decisions, and set a solid foundation for long-term success. This support is crucial for early-stage companies, where resources are limited, and every financial decision can significantly impact growth.

In this episode of the Extraordinary Pursuits podcast, John Frazier from InDinero shares why it’s important to choose an outsourced CFO and accounting partner carefully. He and our Mike Vandiver discuss why it’s especially critical for early-stage companies to have access to financial and accounting resources, the ramifications of getting it wrong, and tips for making the best choice.

Timestamps:

[02:16] The benefit of investing in expert financial resource

[04:11] The best-case outcomes of outsourcing account operation services

[05:55] How to build a strong foundation for solid financial reporting and results

[08:29] The ramifications of not outsourcing right

[09:26] Measuring and managing metrics that run your business predictably

[11:46] Key indicators that it’s time to outsource financial expert

[16:30] What to look for to maximize the value of an outsourced CFO

[20:04] Common pitfalls to avoid when engaging a fractional CFO

[21:41] How CFO shortage is impacting hiring decision

[27:38] 2 key things to look for when outsourcing a financial partner

[30:34] Success stories of companies that outsourced CFOs function at an early stage

[33:36] The impact of remote work on today’s generation and businesses

Points of Wisdom:‍

• “The best outcome in outsourcing is when you’re partnering with a financial expert and working on them understanding your business so that the output you get is tailored to what you do.” [04:39]
• “You can’t manage what you can’t measure.” [09:17]
• “As you grow and step away from the day-to-day interactions, it’s important to rely on data to help guide the business and ensure everybody within the business is clear on the expected results.” [09:55]
• “If you don’t have a solid grasp on your day-to-day transactional activities, you should focus there first; you can bring in the broad view resources, but if you have no structure behind them to execute, it’s wasted energy and resources.” [26:17]

About John Frazier:

John Frazier is the CEO of InDinero, an accounting and financial services solution provider. InDinero specializes in relationship-driven tailored support that helps growth-oriented companies navigate the complexities of financial management. John has more than 25 years of experience in the service space and a unique background that blends electrical and electronic engineering with cloud services, which has helped him deliver guidance to modern financial solutions.

John Frazier

Website: https://www.indinero.com/

LinkedIn: https://www.linkedin.com/in/iamjfrazier

BIP Ventures

Website: www.bipventures.vc

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Twitter: https://twitter.com/bipventures

YouTube: https://youtube.com/@bipventures

Listen to and watch this episode and other episodes of the Extraordinary Pursuits podcast.