Secrets to Find a Stellar CFO with Jim Emerich

In the latest episode of Keep What You Earn, Shannon welcomed Jim Emerich, the CEO of Backbone CFO, for an insightful discussion on the importance of finding the right financial support for your business. The episode delved into the qualities to look for in a fractional CFO, when to consider hiring one, the role of a network in financial services, and practical tips for evaluating potential financial professionals.

The episode started with Shannon highlighting the role of the podcast in simplifying money matters and empowering entrepreneurs through knowledge. She emphasized the importance of finding the right financial support and guidance, setting the stage for the informative discussion with Jim.

Understanding the need for financial expertise, Shannon and Jim discussed the significance of a fractional CFO in businesses. They emphasized the value of having a forward-looking, growth-oriented financial professional, highlighting that a good fractional CFO should be an enabler of growth, not a constraint. In particular, Jim emphasized the importance of pace in business, stating that the pace at which a business is growing determines the need for the right financial support.

When should business owners consider hiring a fractional CFO? Jim shared valuable insights, suggesting that businesses with revenue in the range of seven figures or approaching million-dollar sales should start thinking about bringing a fractional CFO on board. He also emphasized the importance of having a good tax advisor and bookkeeper in place, while also considering the pace of business growth as a determining factor.

Jim and Shannon also discussed the misconceptions around the role of financial professionals. They clarified that a fractional CFO is not solely a bookkeeper or tax advisor but rather a strategic partner focused on enabling business growth and addressing financial challenges proactively.

The importance of networking was another significant point of discussion. Jim highlighted the theory of constraints and the concept of value flow, emphasizing the significance of a CFO's network in enabling value to consistently flow to business owners. He stressed that a strong network of professionals, contractors, and resources should be in place to provide clients with comprehensive business solutions and enable growth effectively.

Practical tips for evaluating financial professionals were also shared. Both Shannon and Jim highlighted the importance of trust, relationships, and shared values in the process of vetting and choosing financial support. They also discussed the value of referrals and connecting with other businesses to seek the right financial guidance and support.

The episode concluded with an invitation to business owners to use a resource provided by Backbone CFO to help them connect with the right financial professional for their specific needs, whether it's for CFO services, legal counsel, insurance, or tax advisory.

In summary, finding the right financial support for your business involves understanding your growth trajectory, recognizing the need for a fractional CFO, and evaluating financial professionals based on trust, relationships, and shared values. It also emphasizes the importance of a strong network of professionals to enable value flow and support business growth effectively.

To conclude, the episode provided valuable insights into the complexities of finding the right financial support for businesses and offered practical guidance on evaluating and choosing the most suitable financial professionals. By applying these insights, entrepreneurs can make informed decisions about their financial support needs and set their businesses on a path to sustainable growth and success.

If you enjoyed this episode, be sure to check out the show notes for more information about Jim and Shannon. Don't forget to leave a rating and review to support the podcast and help reach more business owners seeking valuable financial guidance.

Remember, finding the right financial support is crucial for your business's success, and the knowledge shared in this episode can help you make informed decisions on your journey to financial growth and empowerment.

Jim has held positions such as Chief Financial Officer and Vice President of Finance, has been exposed to financing efforts up to $100 million dollars, mergers and acquisitions, multi-year strategic planning, and more. Despite a decade of success in corporate finance, when he fell asleep at work, he knew he didn’t want the mundane and decided to embark on his entrepreneurial journey. He’s a husband, father of five, and the founder of Backbone CFO which he launched in 2020 with the aim of helping business owners align with the right person and strategy to find financial clarity, time, and fulfillment.

LinkedIn: https://www.linkedin.com/in/jamesemerich/
Website: https://www.backbonecfo.com

What you'll hear in this episode:

05:18 Consider fractional CFO once revenue exceeds seven figures.
07:55 Fractional CFO not just bookkeeper, CPA, tax pro.
09:16 Podcast emphasizes growth, financial management, and advisors.
13:59 Recommend understanding theory of value flow in services.
16:31 Outsourcing builds value and client reliance.
19:49 Entrepreneurs vetting, connecting based on shared values.

If you like this episode, check out:

How to Create More Accurate Forecasts

Why Building a Sellable Business Should Be Your Goal

How to Know if a CFO Power Session is for You

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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.