Blog

Family-owned businesses are a cornerstone of many economies, often representing a legacy passed down through generations. These businesses are unique in their structure, values, and goals. At FinTeam, we specialize in providing fractional CFO and accounting services tailored to the specific needs of family-owned businesses. Why Family-Owned Businesses Benefit from Fractional CFO Services<ol><li>Personalized Attention: Unlike large corporations, family-owned businesses often have a strong personal connection to their operations. Our team provides the individualized attention and care that these businesses deserve; we do this by training our teams well and ensuring they aren’t stretch too thin.</li><li>Long-Term Perspective: Family-owned businesses often have a long-term vision, focusing on generational wealth and sustainability. When we create plans for businesses, we develop monthly goals, annual goals, and long-term goals that integrate with the goals and objectives of each business and their unique objectives.</li><li>Confidentiality and Trust: Family-owned businesses often place a high value on confidentiality. Our team is committed to maintaining <a data-mce-href="https://thefinteam.com/about-us/mission-vision-values" href="https://thefinteam.com/about-us/mission-vision-values">trust and discretion</a>.</li><li>Flexibility and Scalability: As family-owned businesses grow and evolve, their financial needs may change. Fractional CFO and outsourced accounting services offer the flexibility to scale up or down based on specific requirements.</li><li>Expert Guidance: Our team can provide valuable insights into financial management, risk mitigation, mergers &amp; acquisitions, and strategic planning. &nbsp;</li></ol>Specific Areas Where We Can Assist Family-Owned Businesses<ul><li>Financial Planning and Forecasting: Developing comprehensive financial plans and projections to support growth and decision-making.</li><li>Cash Flow Management: Optimizing cash flow to ensure liquidity and financial stability.</li><li>Risk Management: Identifying and mitigating potential risks to protect the business.</li><li>Mergers and Acquisitions: Providing guidance on mergers, acquisitions, and divestitures.</li><li>Succession Planning: Developing strategies for a smooth transition of ownership and management.</li><li>Tax Optimization: Identifying tax-saving opportunities and ensuring compliance with tax regulations. &nbsp;</li></ul>By partnering with FinTeam, family-owned businesses can benefit from the expertise and support of a dedicated fractional CFO and accounting teams. Our tailored approach ensures that we can effectively address the unique challenges and opportunities faced by these businesses. Send as an email at <a href="mailto:Info@thefinteam.com" data-mce-href="mailto:Info@thefinteam.com">Info@thefinteam.com</a> or reach out to us <a data-mce-href="https://thefinteam.com/contact" href="https://thefinteam.com/contact">here</a>.&nbsp;

A Guide to Finance Outsourcing for Family-Owned Businesses

Whether you're just starting out, been doing it a while, or a seasoned pro, running a solopreneur business can be both exhilarating and overwhelming. The freedom of being your own boss is unparalleled, but it also comes with the responsibility of handling every aspect of your business, including its finances. This is where our fractional CFO and accounting services can be a game-changer. Why We Work Well with Solopreneurs<ul><li>Financial Partner: We're your dedicated financial partner, committed to helping you think strategically about your business finances. Together, we'll develop a deep understanding of your financial goals and create a customized plan to achieve them.</li><li>Cover Your Blind Spots: As a solopreneur, you're wearing many hats. While you may be an expert in your field, financial matters might not be your cup of tea. Our team can provide the expertise you need to ensure your finances are in good hands.</li><li>Strategic Planner: We'll work with you to develop strategic plans that align with your business goals and dreams. By analyzing your financial data and market trends, we can help you make informed decisions and optimize your business performance.</li><li>Time Savings: Spend less time on number crunching and more time doing what you love. Our fractional CFO services will free up your time so you can focus on growing your business and delivering exceptional value to your customers. &nbsp;</li></ul>Ready to take your solopreneur business to the next level? Let's discuss how our fractional CFO and accounting services can help you achieve your financial goals and maximize your success. Send as an email at <a href="mailto:Info@thefinteam.com" data-mce-href="mailto:Info@thefinteam.com">Info@thefinteam.com</a> or reach out to us <a data-mce-href="https://thefinteam.com/contact" href="https://thefinteam.com/contact">here</a>.

Why Solopreneurs Should Consider Outsourcing Finance

Service companies play a vital role in our economy, providing a wide range of essential services to individuals and businesses; plus, it’s rewarding serving customers, building relationships, and watching your vision come to life. However, managing the finances of a service company can be complex, with unique challenges that require specialized financial guidance.&nbsp; Which Service Providers?Financial planners, law firms, general contractors, and more... Why We Work Well with Service CompaniesNumbers can feel daunting, and keeping track of every invoice and expense can steal precious time you could be spending serving clients. Marketing your business, closing out projects, and hiring more talent are critical roles for the leader of a company; so why should you be spending precious time keeping track of every invoice being sent and expense that’s received?We understand the unique challenges you face, like project-based billing, headcount planning, and fluctuating cash flows. Here’s exactly why we excel at helping service companies: Headcount PlanningOne of the most critical aspects of running a service company is managing your workforce. We specialize in headcount planning, helping you forecast demand for services, wages, and benefits, while also helping you incentivize them appropriately. This ensures that you have the right number of employees to meet your needs without overspending. Expense OptimizationService companies can often identify areas where they are spending unnecessarily. We help you pinpoint expenses that are unused, underutilized, or unnecessary. By optimizing your expenses, you can free up cash flow to invest in growth or reduce your overall costs. Time SavingsTechnology can be a powerful tool for service companies. We help you identify software, automation, and systems that can increase efficiencies and boost your margins. By streamlining your operations, you can save time and focus on what you do best: providing exceptional service. Payroll AnalysisUnderstanding the key drivers of personnel expenses is essential for any service company. We can help you analyze your payroll data to identify trends related to overtime, time off, and benefits. This information can be used to make informed decisions about your workforce and compensation strategies. Ready to take your service company to the next level? If you're a service company looking to improve your financial performance, we can help. Let's discuss how our fractional CFO and accounting services can help you achieve your financial goals and help you financially flourish. Send as an email at <a href="mailto:Info@thefinteam.com">Info@thefinteam.com</a> or reach out to us <a data-mce-href="https://thefinteam.com/contact" href="https://thefinteam.com/contact">here</a>.

Outsourcing Finance for Service Companies: A Comprehensive Guide

A financial advisor for a financial advisor?&nbsp;That doesn't make sense... or does it?&nbsp;At FinTeam, we've partnered with a number of financial planning firms and RIAs to support them with their financial management and processes.&nbsp;Here's why it makes sense and how we help add-value to their businesses:<h2>The Components of A Financial Planning Firm</h2>Financial planners do&nbsp;incredibly valuable work, but internally they operate like many service companies; they are groups of people that perform high-value services for paying clients, doing so by leveraging their skills, technology, and relationships.&nbsp;From a financial perspective, they have a couple of key inflows / outflows of cash based on their operations:<ul><li>Revenue-Components<ul><li>Invoicing based on a % of AUM or fixed fee model on a monthly, quarterly, or annual basis.</li><li>Hourly consulting work.&nbsp;</li><li>Commissions and other revenue-items.&nbsp;</li></ul></li><li>Expense Components<ul><li>People: Advisors, client service associates, marketing professionals, etc.&nbsp;</li><li>Education &amp; Training: Fees for CFP and Series exams, continuing education, etc.</li><li>Software: eMoney, Money Guide Pro, Morningstar, Orion, Envestnet, etc.&nbsp;</li><li>Marketing &amp; Advertising: Going to conferences, buying Google Ads, sponsoring events, etc.&nbsp;</li><li>Other Operating Expenses: Meals, traveling, rent, office supplies, client gifts, etc.</li></ul></li><li>Other Components<ul><li>Debt: Loans that are amortizing, lines of credit that need paid off, etc.&nbsp;</li><li>Overrides: Typically a % of revenue that an <a data-mce-href="https://www.investopedia.com/terms/i/iar.asp" href="https://www.investopedia.com/terms/i/iar.asp">IAR </a>must pay to the <a data-mce-href="https://www.investopedia.com/terms/r/ria.asp" href="https://www.investopedia.com/terms/r/ria.asp">RIA </a>they operate under.&nbsp;</li><li>M&amp;A: If the firm has bought another financial advisory practice, there may be promissory notes, earn-outs, or retention payments the practice must still pay out (in additional to the financial and operational integration of those firms).&nbsp;</li></ul></li></ul>Each component is moderately straightforward to plan for and anticipate; combining all of these in a firm with dozens of software, several employees, and multiple loans can become a cumbersome task. Here's a visulation of how the revenue and expenses of your business will feed into your budget:<figure id="figure-27jwex2bt6m19k1px7" class=""><img id="27jwex2bt6m19k1px7" src="https://cdn.durable.co/blocks/1dbRKbVSbFfGknrKh8IJrLYoSPoDNx6ELjs3v3BhtDeXwnueVeizArenLEFCTE07.png" alt="budget creation process" title="budget creation process" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="medium" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/1dbRKbVSbFfGknrKh8IJrLYoSPoDNx6ELjs3v3BhtDeXwnueVeizArenLEFCTE07.png" data-mce-style="aspect-ratio: 16/9; object-position: undefined undefined;"></figure>Here's a quick visualization of how your budget will impact your broader cash flow forecast:<figure id="figure-6wgthof8mem19khevt"><img id="6wgthof8mem19khevt" src="https://cdn.durable.co/blocks/3ai3WeAmCKImwBMtWddUi8EeJWsHvuCcA1OFqZThlLjPBrpZXWEWNwDcZTuFLMT3.png" alt="two women sitting beside table and talking" title="two women sitting beside table and talking" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/3ai3WeAmCKImwBMtWddUi8EeJWsHvuCcA1OFqZThlLjPBrpZXWEWNwDcZTuFLMT3.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h2>Why Do Financial Advisors Need Financial Advisors?</h2>We think most financial advisors could assemble this type of forecast and integrate it into their operating plan. Our key questions are:<ul><li>Do you have time to do it?</li><li>If so, is it worth your time?</li><li>Even if it is worth your time, would it be worth having someone in your corner to watch your blindspots and provide "sanity checks" to make sure you're going the right direction?&nbsp;</li></ul>Even if it is worth your time, each component of your cash flow planning becomes increasingly more complex over time - are you prepared for the corresponding increase in time required for planning?<h2>What Type of Financial Support Do Financial Advisors Actually Need?</h2>We're not trying to "boil the ocean" here, so what&nbsp;exactly do Fractional CFOs need to do to add-value to a financial advising firm?&nbsp;Here's a full guide to what Fractional CFOs&nbsp;should&nbsp;be doing for you. For financial advisors specifically, Fractional CFOs should be:<ul><li>Helping you set monthly and annual goals (typically through a budgeting process).</li><li>Supporting you as you plan to hire additional staff, evaluate new marketing opportunities, integrate new software, and consider avenues of additional growth.&nbsp;</li><li>Taking your projected revenues, expenses, owner distributions, debt payments, and other information to create your cash flow forecast.&nbsp;</li><li>Partnering with you as you evaluate M&amp;A opportunities (both for selling your business and buying other businesses).&nbsp;</li><li>Ensuring that your accounting, bookkeeping, and software integrations are correct, accurate, and optimized.&nbsp;</li></ul> If you're a financial advisor and would like a partner to join you in helping you plan for success, feel free to reach out <a data-mce-href="https://thefinteam.com/contact" href="https://thefinteam.com/contact">here</a> or drop us an email at <a href="mailto:info@thefinteam.com">info@thefinteam.com</a>. We're excited to help your business financially flourish.&nbsp;

Ultimate Guide for How Fractional CFOs Partner with Financial Planners

This is the sign you've been looking for neon signage

In today's digital age, effective marketing is no longer about simply spending more; it's about spending smarter. Data-driven decision-making is the key to maximizing your return on investment (ROI). This article will explore how to leverage key performance indicators (KPIs) and analytics to optimize your advertising and marketing spend.&nbsp; &nbsp; <h2>Beyond the Numbers: Making Informed Decisions&nbsp; </h2>Aggregating data is just the first step. The real value lies in using that information to refine your strategy. A successful marketing approach is dynamic, constantly evolving based on performance metrics. It's a misconception that increased spending automatically equates to better results.&nbsp; &nbsp; <h3>Tailored Strategies for Every Business&nbsp; </h3>&nbsp;One-size-fits-all marketing strategies are often inefficient. Each business is unique, requiring a personalized approach. By leveraging KPIs and real-time data, businesses can create a framework that maximizes the value of every marketing dollar.&nbsp; <h3>&nbsp; The Importance of Data-Driven Decision Making&nbsp; </h3>Maximize ROI: Identify the most effective channels and campaigns.&nbsp; Optimize Spend: Allocate resources where they yield the highest returns.&nbsp; Measure Success: Track key metrics to assess performance and make adjustments.&nbsp; <h2>&nbsp; Key Performance Indicators (KPIs) for Effective Marketing&nbsp; &nbsp;</h2>While specific KPIs may vary by industry and platform, here are some essential metrics to consider:&nbsp; <ul><li>Return on Advertising Spend (ROAS): Measures the revenue generated per dollar spent.</li><li>Cost Per Acquisition (CPA): The average cost to acquire a new customer.</li><li>Click-Through Rate (CTR): The percentage of people who click on an ad.</li><li>Engagement Rate: The level of interaction with your content.</li><li>Conversion Rate: The percentage of visitors who take a desired action (e.g., purchase, sign-up).&nbsp;</li></ul>&nbsp; Platform-Specific KPIs&nbsp; &nbsp; <ul><li>Facebook &amp; Instagram: Reach, impressions, engagement, CTR, cost per action.</li><li>Google Ads: Bounce rate, impressions, CPM, CPC.</li><li>Amazon: Reach, awareness, engagement, conversion rate, retention.</li><li>LinkedIn: Engagement rate, follower growth, page views, conversion rate, CTR.</li><li>Eventbrite: Sales by ticket type, attendee geography, attendance, total profit, feedback.</li></ul><h2> Conclusion&nbsp; </h2>&nbsp;By adopting a data-driven approach to marketing, businesses can make informed decisions, optimize their spending, and achieve greater success. Remember, the goal is not just to spend money, but to invest it wisely to achieve measurable results.&nbsp; &nbsp; With FinTeam’s experience in dealing with advertising and marketing spend management, we are able to carefully analyze all relevant factors, so that we can find the precise solution that best suits your business's needs and goals. &nbsp;  &nbsp; If you need help evaluating your current advertising and marketing spending or want to talk through how to optimize your current strategy, send as an email at Info@thefinteam.com or reach out to us <a data-mce-href="https://thefinteam.com/contact" href="https://thefinteam.com/contact">here</a>.&nbsp;

Advertising and Marketing Spend Management: A Data-Driven Approach

Heap of coins money with up arrow and stock market chart for financial banking increase interest rate or mortgage investment dividend from business growth concept.

When a small business needs capital, debt financing is often a viable option. However, with various types of debt available, it's essential to understand the nuances of each to make an informed decision. This article explores some of the most common types of debt financing for small businesses.&nbsp;Before we begin... Here's a chart for all of our visual learners out there:&nbsp;<figure id="figure-p3u3dv92dm0fgy7um"><img id="p3u3dv92dm0fgy7um" src="https://cdn.durable.co/blocks/forry8vGNx07WqiNUKYdQVbAgVsCWiknKq3qx2IKjFvpSGfy5JaXHYbEoukC0b6v.jpg" alt="Successful financial plans" title="Successful financial plans" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/forry8vGNx07WqiNUKYdQVbAgVsCWiknKq3qx2IKjFvpSGfy5JaXHYbEoukC0b6v.jpg" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure>Let's dive in...<h3>&nbsp; SBA Loans&nbsp;</h3>The Small Business Administration (SBA) offers a variety of loan programs, backed by the federal government, to help small businesses access capital. These loans often have lower interest rates and more flexible repayment terms compared to traditional bank loans.&nbsp; &nbsp; While SBA loans offer significant advantages, they can also be time-consuming to obtain due to the extensive application process and documentation requirements. Additionally, some SBA loans may require collateral, which can be a barrier for businesses with limited assets.&nbsp;<h3>Business Lines of Credit&nbsp;</h3>A business line of credit is a revolving credit facility that allows businesses to borrow funds up to a pre-approved limit as needed. This flexibility makes it a popular choice for managing cash flow and covering unexpected expenses.&nbsp; &nbsp; However, business lines of credit often come with higher interest rates than fixed-term loans. Additionally, the revolving nature of these loans can increase the risk of overspending if not managed carefully.&nbsp;<h3>Invoice Factoring&nbsp;</h3>Invoice factoring involves selling your outstanding invoices to a factoring company at a discount. This can provide immediate cash flow but comes with a fee.&nbsp; &nbsp; While invoice factoring can be a quick way to access funds, it can also be expensive due to the fees charged by factoring companies. Additionally, factoring can damage customer relationships if they become aware that your business is using this method.&nbsp;<h3>Term Loans&nbsp;</h3>A term loan is a fixed-term loan with a predetermined interest rate and repayment schedule. It's often used for major purchases, such as equipment or real estate.&nbsp; &nbsp; Term loans offer the advantage of fixed interest rates, which can provide predictability in payments. However, they often require collateral and can be time-consuming to obtain. Additionally, prepayment penalties may apply if you repay the loan early.&nbsp;<h3>Equipment Financing&nbsp;</h3>Specifically designed to finance the purchase of equipment, equipment financing can be a term loan or a lease.&nbsp; &nbsp; Equipment financing can be a beneficial option for businesses that need to purchase new equipment. However, the equipment itself is often used as collateral, which can be a risk if the equipment loses value. Additionally, interest rates for equipment financing may be higher than for other types of loans.&nbsp;<h3>Commercial Real Estate Loans&nbsp;</h3>These loans are used to finance the purchase or refinance of commercial real estate.&nbsp; &nbsp; Commercial real estate loans can be a good investment for businesses that own property. However, they often require a significant down payment and can be subject to interest rate fluctuations.&nbsp;<h3>Merchant Cash Advances&nbsp;</h3>A merchant cash advance involves selling a portion of your future credit card sales to a lender in exchange for a lump sum of cash. This can be a quick way to obtain funds but often comes with high interest rates.&nbsp; &nbsp; While merchant cash advances can provide immediate funding, they can also be very expensive due to the high interest rates. Additionally, the repayment terms can be challenging for businesses with fluctuating cash flow.&nbsp;<h3>Microloans&nbsp;</h3>As mentioned earlier, microloans are small, short-term loans typically offered by nonprofit organizations or microlenders.&nbsp; &nbsp; Microloans can be a good option for small businesses or startups that need a small amount of capital. However, they often have higher interest rates than larger loans and may have limited funding available.&nbsp;<h3> &nbsp; Factors to Consider When Choosing Debt Financing&nbsp;</h3>When selecting the right type of debt for your business, consider the following factors:<span style="font-family: inherit; font-size: calc(18px * var(--body-fontSize, 1)); font-weight: inherit; font-style: var(--body-fontStyle, normal); background-color: rgba(249,250,251,var(--tw-bg-opacity));" data-mce-style="font-family: inherit; font-size: calc(18px * var(--body-fontSize, 1)); font-weight: inherit; font-style: var(--body-fontStyle, normal); background-color: rgba(249,250,251,var(--tw-bg-opacity));">Purpose of the loan: What will the funds be used for?&nbsp;<ul><li>Amount needed: How much money do you require?</li><li>Repayment terms: What is your preferred repayment schedule?</li><li>Interest rates: Compare the interest rates of different loan options.</li><li>Collateral requirements: Will you need to provide collateral to secure the loan?</li><li>Fees and charges: Be aware of any associated fees, such as origination fees or prepayment penalties.</li><li>Lender reputation: Research the lender's reputation and experience.&nbsp; &nbsp; &nbsp; If you need help understanding the debt you have or want to talk through how to finance your business, send as an email at Info@thefinteam.com or reach out to us here.&nbsp; </li></ul>We've seen&nbsp;lots&nbsp;of types of debt and love helping small business owners understand financing options available for their company and reduce their cost of debt.&nbsp;*For avoidance of doubt, we don't underwrite or issue any debt ourselves. We also do not accept commission checks from lenders to avoid conflicts of interest.&nbsp;

The Blog

A Guide to Finance Outsourcing for Family-Owned Businesses

Why Solopreneurs Should Consider Outsourcing Finance

Outsourcing Finance for Service Companies: A Comprehensiv...

Ultimate Guide for How Fractional CFOs Partner with Finan...

Advertising and Marketing Spend Management: A Data-Driven...

The Ultimate Guide To Understanding Small Business Debt