How To Add a Fractional Accountant to Your Team

To Boost Your Bottom Line

Does this sound familiar?

• Our goals and priorities no longer align. 

• It’s like we’re speaking different languages. 

• My needs are not being met.

• This just isn’t working anymore.

Just like a romantic relationship, breaking up with your accounting department can be hard to do. Whether it’s because someone has been handling bookkeeping internally but your company is growing and needs more help (yay!) or because your controller hasn’t been meeting expectations (not as yay) or the firm you’ve been working with is too expensive or suddenly dropped you (ouch), this time of transition can be an opportunity. 

More and more SMBs are making the switch to fractional accounting solutions, because they often offer more support, flexibility, and peace of mind than in-house departments.

Read: How a Fractional Solution Can Ease Your Accounting Frustrations

But, like any transition, making sure it’s a success takes some planning and expectation management. If you’re interested in making the leap from in-house to fractional accounting support, follow these 8 steps to set yourself up for success:

1 - Properly define terms and expectations. (What does fractional mean, anyway?)

An employee is on a company’s payroll, works a set number of hours at specific times, and is expected to be available to management during those times. The company is responsible for setting the employee’s projects, goals, and workload.

Conversely, a fractional professional or team provides support on an as-needed basis, works remotely, and sets their own hours. The scope of work can fluctuate up or down depending on the business’ changing needs. The business and fractional partner work together to establish goals. Communication is primarily electronic (email, Slack, etc) and via scheduled check-in meetings. This approach allows businesses to access high-level expertise without the expense of a full-time salary and benefits package. 

2 - Conduct research.

Before you hire a fractional accountant (or team of accountants), interview a few options to see who you feel most comfortable with. To make sure you’re being thorough, click on the image to the left for a list of 12 questions to ask a potential fractional partner.

3 - Embrace the cloud.

Is your accounting operation still run using paper checks and the harddrive on a desktop computer? In order to work with a fractional partner, you’ll need to migrate to a cloud-based general ledger, such as Quickbooks Online or Xero. Don’t worry, the cloud is actually much more secure than desktop, and many bookkeepers can manage this transition for you. (Make sure to add this to your list of questions above!) 

4. Identify key stakeholders.

In order to communicate most effectively with outside support, you’ll first need to make sure your internal ducks are in a row. Who needs to approve what? Who needs to regularly meet with your fractional team? Who needs to provide the initial green light for hiring your new bookkeeper or CFO? Identifying this early will set you up for a smooth transition and ongoing success. 

5. Answer questions with brutal honesty.

A conversation with your new fractional finance team is no time to be shy. It’s crucial you answer any questions honestly and directly. What keeps you up at night? What makes you most proud of your business? What do you wish you could improve? What is your vision for growth? The more insight you can give, the more accurate the accountant’s recommendations (and pricing!) for goals and a scope of work will be.

6. Dream big.

At the same time, don’t be shy about your goals! Be ambitious when you look into the future, and communicate your vision to your fractional partner. A good accountant is a creative ally, and knowing where you want to go gives them the info they need to design a roadmap to get you there. 

7. Do your homework.

You are hiring this person to make your life as easy as possible when it comes to your business’ finances. However, there will be certain “inputs” they need from you to achieve the desired “outputs.” So, be on the lookout for requests from your accountant, such as completing software setups or providing documentation, and try to complete them in a timely fashion so they can complete work on time for you. 

8. Communicate openly.

Last, but definitely not least: Keep the honest communication going throughout your ongoing partnership. Ask lots of questions, be honest if you don’t understand something, and communicate updates about your company in a timely fashion. There will certainly be bumps in the road for your business (there always are!) but by communicating openly you will always have a trusted partner to work through them with you.

At Breakaway, our goal is to bring joy to accounting--and to our clients. If you’re looking for a bookkeeper or CFO to act as your business' trusted financial partner, reach out. We'd love to meet you.