The Art of Finance: Key Steps for Founders - Patrick McCarthy - Entrepreneur Intel - Episode # 31

In this episode, we delve into the critical role of financial education for founders, especially those without a conventional finance background. Our guest, a seasoned fractional CFO, shares his approach to educating first-time founders about financial management and the art of interpreting business numbers. He emphasizes the importance of clean bookkeeping, understanding financial statements, and strategic financial planning.
 
Takeaways:
  • The guest highlights the lack of proper financial education among founders and the general population. He takes an educational approach, helping clients understand their business numbers and manage finances effectively.
  • Discussing the transition from a closed book to an open book management style, the guest explains how transparency in financials can demystify profit perceptions among employees.
  • The importance of data in business decisions is stressed. The guest explains how customer data, such as NPS surveys, can impact financial modeling and forecasts.
  • The episode covers when it's beneficial for a company to hire a CFO or a finance professional, highlighting the early investment in bookkeeping. The guest describes the typical relationship with a founder, from initial financial operations to strategic planning and scaling.
  • Strategies to build trust and verify financial integrity within a business. Clarifying the roles of a bookkeeper, fractional CFO, and tax accountant, and how they work together to maintain a healthy financial ecosystem.
Quote of the Show:
  • “I take an education or educational approach to finance,  Not only am I presenting the numbers, I'm helping them understand the numbers of their business and learn how to manage them better” - Patrick McCarthy
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The Art of Finance: Key Steps for Founders - Patrick McCarthy - Entrepreneur Intel - Episode # 31
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