As tax season ramps up and economic uncertainty looms, many small business owners find themselves overwhelmed and underprepared. In today’s episode of The Small Business Show, Darren Joel, regional director of The CFO Centre in Atlanta, shares how fractional CFOs can help entrepreneurs navigate financial stress, position for growth, and build long-term business value.
A fractional CFO is an experienced chief financial officer who works part-time with businesses to provide strategic financial oversight without the cost of a full-time executive. With over 750 CFOs in 18 countries, The CFO Centre offers a global reach to small and medium-sized companies seeking financial leadership and clarity.
Joel highlights that many entrepreneurs, while strong in vision and innovation, often lack the financial expertise needed to scale or stabilize their operations. Especially during tax season, small business owners may find themselves distracted or overwhelmed by accounting tasks and compliance requirements. A fractional CFO can help streamline this process, provide accurate reporting, and ensure the business remains focused on growth. Joel stresses that proper financial planning is crucial when preparing a company for sale or investment, as organized records and strategic foresight can significantly impact valuation and deal success.
The conversation also touches on broader concerns such as market instability and tariffs, which have created hesitation among business owners regarding hiring, expansion, and long-term planning. Joel shares his own entrepreneurial journey, including the lessons he learned from launching businesses before the 2007 recession and the COVID-19 pandemic. He encourages prospective entrepreneurs to remain strategic and resilient, viewing periods of uncertainty as opportunities to make smart decisions and gain a competitive edge.
To close, Joel emphasizes that accountants and tax preparers are not substitutes for a CFO. While they serve essential roles, they typically lack the broader, forward-looking perspective and operational experience that a seasoned CFO brings. The CFO Center’s ideal client falls in the $2 million to $30 million revenue range, but they also serve startups and larger companies needing additional bandwidth or specialized strategic support. Ultimately, Joel advocates for building a strong, well-aligned team to guide businesses through both everyday operations and uncertain economic climates.
When looking for a fractional CFO, Joel recommends looking for an individual who displays:
- Financial intelligence: The CFO must be knowledgeable about financial issues and develop effective plans and strategies to guide the company’s finances and grow sustainably.
- Emotional intelligence: Seek an individual who is a “people person” and can inspire and lead others. This person should be an excellent communicator and collaborate effectively with others.
- Collective intelligence: The CFO must be well-connected to high-level individuals, leveraging these connections and their network to seek counsel, support, or make suitable connections for business growth.
"Anytime you're going through an uncertain period, it creates a need to make smart business decisions. If you're not smart and strategic, you're going to go under. In a way, it forces your hand to make critical business decisions that you might not have made when things are going well." – Darren Joel
