Is It Time To Hire An Outsourced CFO For Your Fitness Business?

If you’re reading this article, chances are you’re considering hiring outside help to manage the finances for your gym or fitness business.

After all, running a gym or fitness business is hard enough without having to worry about finances. Managing your budget, planning for the future, and tracking your business’s performance can become really overwhelming.

But how do you know when to hire a part-time or outsourced CFO? What do they even do? And what makes a CFO different from an accountant or bookkeeper?

In this blog, we’ll explain what a part-time CFO does, how they’re different from other financial professionals, and how to decide if hiring one is the right choice for your fitness business.

Let’s get started!

What is a part-time CFO?

First things first: what the heck is a part-time CFO?

A part-time CFO is exactly as it sounds! It’s when you outsource the responsibility of a Chief Financial Officer (CFO) to someone outside of the company on an hourly basis, rather than hiring the role full-time.

It’s like testing the waters of a CFO without jumping in full steam ahead. Because let’s be honest, very few fitness businesses require 2,000 hours of a CFO’s time each year.

It’s a great way to cover the heavy lifting of a CFO without the hefty price tag that comes along with it.

What does a part-time CFO do?

The role of a part-time CFO can vary from gym to gym, depending on the phase of growth it’s in. Think of an outsourced CFO as an advisor—ready to lend their expertise no matter what area of the business you need help with.

Whether you’re just starting out and need business setup assistance, or you’re a multi-location franchise in need of expansion assistance, an outsourced CFO can lend their expertise.

Typically for gyms and fitness businesses, there’s a focus on forward-planning strategy, such as setting and tracking KPIs, developing forecasts or “what if” projections, and strategically planning to grow and sell the business.

However, it often involves a lot more than that, including tasks like:

Budgeting oversight and proactive forecasting (both long and short term)
Managing weekly cash flow
Advise on industry related benchmarks
Manage large expenses and frivolous spending
Provide data for tough business decisions
Set up the business for growth, expansion, or exit
Scenario planning
Business coaching
Bank financing, funding, and investor preparations and presentations
Staffing consults: hiring, firing, demoting, promoting, benefits
And much more

In short, a part-time CFO will study the company’s finances and plan a course of action based on the unique situation.

Whether that’s budgeting, managing risk, or identifying and measuring relevant KPIs, it’s their job to take control of the financial direction of the company and accelerate the achievement of goals.

What is the difference between an accountant and a part-time CFO?

So, what makes a part-time CFO different from an accountant?

While the roles of an accountant and a CFO may seem similar at first glance, in reality, they are quite different.

An accountant handles your taxes, and possibly your bookkeeping and payroll each month.

A part-time CFO, however, takes it one step further by taking on a more strategic role in the company.

Whether it’s overseeing important projects or planning the financial track of the business, a part-time CFO helps you make fundamental decisions.

While an accountant does tactical work from afar, a part-time CFO takes on more of an advisory role within the business.

Does your fitness business need an outsourced CFO?

We get asked a lot whether or not a business is “ready” for CFO services, and it essentially boils down to one question: Do you need more financial involvement, strategy, or advice in your business?

Let’s look at a few specific scenarios. It’s probably the right time for an outsourced CFO in your gym if:

You need strategic planning, not just financial reports
You’re in the growth stage of your business
You need guidance on capital raising or funding
You need someone to take charge of the annual budgeting and/or forecasting
You’re preparing for an acquisition or planning to sell
You have a board or stakeholders to inform
You’ve hit a plateau and need strategic direction
When you just want someone to look over your financials to make sure everything is on track
When you need a coach, a sounding board, or someone to call when you have a question.

However, if your business doesn’t have a bookkeeper or an accountant yet, it’s probably too early to take that next step. We recommend getting those roles in place before seeking the help of an experienced advisor.

The good news is that some accounting firms offer all of these services under one roof, like we do here at The Fitness CPA.

At The Fitness CPA, we combine accounting, bookkeeping, payroll, and strategic outsourced CFO services to help fitness businesses financially manage their business no matter what stage it’s in.

Whether you’re making big or small decisions, we’ve likely seen it before. We are not some finance guru you saw on Instagram who wants to charge thousands of dollars per month to be in their mastermind group.

We engage fitness business owners with accounting, tax, and fitness industry advisory services which empower you to make the most profitable decisions for your business.

If this sounds up your alley, you can find out more about our outsourced CFO services or head over to our Getting Started page to get in touch with the team. We’re always here to help.

Otherwise, take a look at a few of our other recent blogs, we think you’ll find them useful!

Until next time!

Author
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Eric Killian

CPA & Founder | Accountant, husband, father, mountaineer.
Fitness is such a big part of who I am. Maintaining a healthy lifestyle, eating well (mostly paleo), hiking, backpacking, mountaineering, practicing yoga and Crossfit are all important cornerstones of life. But I love ice cream and cookies too much to say no!
I love helping owners make sense of their business and finding ways to grow it. It’s an honor to help you see situations, scenarios and opportunities from all sides so you can make informed decisions.

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