The CFO Accelerator (Blog)

156. Is Your Firm ACTUALLY Profitable?

Fractional CFO firms often mistake personal earnings for firm profitability, especially when bookkeeping and tax services bleed cash. A simple 30‑minute gross‑margin autopsy reveals that high‑margin CFO retainers are subsidizing low‑ or negative‑margin bookkeeping work. By isolating revenue and cost per service line, owners see that the true profit driver is strategic advisory, not compliance. The article urges firms to drop loss‑making bookkeeping clients, set a non‑negotiable CFO retainer of $7,500 +/month, and re‑position as pure advisory shops.