Insights

On the 14th of June 2024, Tenzing Search hosted our second networking event for Fractional CFOs. Our Founder, Lisa Collins, was joined by Chris Baker, Technology Partner at LDC who shared insight into the role of Fractional CFOs in tech startups. They discussed the common themes in the tech sector, including: Investment and financial oversight The role played in investment readiness Long-term financial strategy planning Keep reading for key takeaways from the evening. About Chris Baker Chris Baker has built an impressive career as a Non-Executive Director in businesses such as James and James Fulfilment and DSP. Chris also operates as a Technology Partner at LDC. A Private Equity Investor specialising in the Technology sector, LDC partners with ambitious management teams of high growth Software and Technology Services businesses. With more than 40 years of experience, LDC is the UK’s most active Private Equity investor in mid-market Technology businesses. Investment and financial oversight Chris highlighted the challenge of finding robust financial oversight in smaller tech companies. More and more start-ups “tend not to have finance professionals at the helm, certainly not full time.” Often, they rely on a Head of Finance and/or outsourced services. This lack of financial leadership can create significant challenges. The biggest and most common issue being a “lack of historical financial insight”. The involvement of experienced finance professionals, such as Fractional CFOs, is essential to bridge these gaps and ensure businesses are prepared for investment processes. What skills should start-ups seek in CFOs? Fractional CFOs can play a pivotal role in setting up financial systems. They can help reduce human error, increase operational efficiency, and ultimately help companies to “get their arms around the comfort blanket” of financial data. With Fractional CFOs, start-ups can finally make informed strategic decisions. When engaging a Fractional CFO, Chris emphasised the importance of bringing someone in who “has been through an investment process before” and understands how to “manifest an investment plan into something that could be relatable to a future investor.” The role of CFOs in investment readiness Fractional CFOs play a pivotal role in preparing companies for investment. Chris noted that many small businesses are “walking into” investment opportunities without sufficient financial leadership. In his role, he’s seen many lacking even basic financial documentation, like a cash flow model. This creates challenges, as private equity firms require reliable financial data to feel comfortable with potential investments. Baker emphasised the need for experienced finance professionals who have “been in the trenches when cash flows don’t work” and who can “support businesses either at the point of investment or, ideally, prior to investment to get them ready.” By stepping in early, Fractional CFOs help companies build robust financial systems and plans that align with investor expectations. They provide the expertise needed to navigate the complexities of financial planning and reporting, ensuring that businesses are well-prepared for investment opportunities and positioned for growth. Long-term financial strategy planning In the long-term, Fractional CFOs provide invaluable support in financial strategy planning, helping businesses align their financial goals with their strategic vision. Chris stressed the importance of starting preparations well in advance of any potential sale or funding round. Attendees at the event noted that “most people think it’s a couple of months, six months, but the process should start 18 months before you want to sell.” It’s crucial to build a solid financial foundation as early as possible, advising to “start building your data now, start getting your historics correct.” This long-term approach allows companies to present a coherent and attractive financial narrative to potential investors. Fractional CFOs bring their expertise to this process, ensuring that management accounts and financial records are meticulously maintained and that strategic financial plans are in place. By focusing on long-term financial strategy, they help businesses not only prepare for investment but also achieve sustainable growth and operational efficiency, positioning them for success in the competitive market. Tenzing Events A big thank you to Chris for speaking at our most recent event. We look forward to hosting more Tenzing Events for our network in the future. For more information, be sure to reach out to our Founder, Lisa Collins at lisa@tenzingsearch.com For your finance recruitment needs, get in touch! Tenzing Search is a specialist Finance and Accountancy Search business. We specialise in Senior Qualified appointments across the UK and USA, focusing on both Interim and Permanent appointments across all sectors.

In today’s competitive job market, attracting and retaining top talent in the accountancy field has become a crucial priority for businesses looking to stay ahead of the curve. The demand for skilled accountants continues to rise. Now, employers must implement effective strategies that not only attract the best candidates, but also foster a strong work environment for their long-term growth and success. Here are our top tips to help businesses attract top talent in the accountancy field. 1. Define a clear job description and offer a competitive compensation package Before embarking on a recruitment process, it’s essential to have a clear understanding of the responsibilities associated with the position. First, you should create a job description that includes the skills, qualifications, and experience required for the role. This not only helps in attracting candidates with the right background, but also ensures that the candidates are aware of what is expected of them. It will also help ensure that your recruiters are targeting the exact type of candidate you are looking to employ. Compensation is a significant factor that influences a candidate’s decision to accept a job offer. It’s crucial to ensure that your salary and benefits packages are competitive within the industry. You can do this by conducting market research to understand the prevailing salary ranges for accountancy positions in your region. Additionally, consider offering perks such as flexible work arrangements, health benefits, retirement plans, and opportunities for professional development as these are becoming more of a deciding factor for a candidate. 2. Cultivate a positive work culture A positive work culture is a magnet for top talent. Create an environment that fosters collaboration, innovation, and professional growth. Encourage open communication, provide opportunities for skill-building, and recognise outstanding performance. A positive work culture not only attracts high-calibre candidates but also retains them in the long run. 3. Embrace technology and innovation The accountancy field is rapidly evolving, with technology playing an increasingly critical role. Embrace innovative accounting software and technologies to streamline processes and enhance productivity. Demonstrating a commitment to staying up-to-date with industry trends and leveraging technology will attract candidates who are forward-thinking and tech-savvy. The digital age is well and truly upon us and we need to incorporate this in all elements of a business, the role it plays in finance is a pivotal one in ensuring its success and attraction to top talent. 4. Provide opportunities for career growth Top talent is often driven by the prospect of career growth and advancement. Outline a clear path for progression within the organisation. Offer opportunities for additional training, mentorship programs, and the chance to take on challenging projects. Demonstrating a commitment to the professional development of your employees will be a strong selling point for attracting top candidates. 5. Leverage employer branding Establishing a strong employer brand is crucial in attracting top talent. Showcase your company’s values, mission, and culture through your website, social media channels (LinkedIn, Instagram, TikTok etc), and any other professional networks. Highlight success stories of current employees and emphasise what sets your organisation apart from your competitors. Not only does building your brand on Google, Glassdoor, and other referring websites help attract talent, but they are also big additions to help your SEO strategy too. 6. Implement effective recruitment strategies Utilise a multi-channel approach for recruitment, including job boards, social media platforms, industry-specific forums, and professional networks. Leverage the services of recruitment agencies or consider hosting career events to connect with potential candidates directly Utilising diverse channels increases your reach and helps you tap into a wider pool of talent. It’s important that all parameters of the role are met by the right candidate. You might consider psychometric testing or scenario-based interviewing to ensure the depth is required in the hiring process. 7. Promote work-life Balance A healthy work-life balance is increasingly important to today’s workforce. Highlight your organisation’s commitment to employee well-being and work-life balance. Offer flexible work arrangements, paid time off, and support for mental health initiatives A company that values work-life balance is more likely to attract and retain top talent. Today’s market now has a new set of demands from top talent so showing your business is truly flexible/hybrid is a huge selling point. Now you’re ready to attract top accountancy talent Attracting top talent in the accountancy field requires a multifaceted approach that encompasses clear communication, competitive compensation, a positive work culture, and a commitment to professional development. By implementing these strategies, businesses can not only draw in high-calibre candidates but also create an environment where they can thrive and contribute to the organisation’s success in the long term. Remember, in the competitive landscape of the accountancy field, top talent is the key to maintaining a competitive edge and achieving sustainable growth. Tenzing Search is a finance and accountancy recruitment agency. For more support in your recruitment efforts, get in touch at info@tenzingsearch.com.

The fractional career path can be lonely. However, with so much demand in the market, the Fractional CFO role is one that many finance executives choose. We’re building this likeminded community to create a space where CFOs can bounce ideas and challenge one another and share best-practice and outcomes. To launch our Fractional Chief Financial Officer community, our Founder, Lisa Collins, held our first roundtable event. Here, attendees shared the challenges that they face within their roles and began to craft solutions to them. Topics included: Fractional versus interim positions Investment and fundraising dynamics Market dynamics and strategic adaptations Technology’s impact on businesses Keep reading for key takeaways from the morning’s conversation. What is a Fractional CFO? Before exploring the challenges faced by Fractional CFOs, lets define the role. A Fractional CFO (Chief Financial Officer) offers financial expertise and strategic guidance to businesses on a part-time or contractual basis. Their role focuses on finance, planning, and growth strategies. Start-ups and SMEs tend to hire a Fractional to access their executive knowledge, without the cost of a full-time salary. Interim vs Fractional Becoming an Interim CFO is a much more traditional route and has been incredibly common up until recently. Now, we’re seeing an increase in demand for fractional professionals who can act as more of an advisor to the business. “‘Fractional’ is actually a relatively young term. I don’t think the definition is clear cut. I think it’s actually evolving as we all undertake Fractional work, we all have different experiences.” Recent events have demonstrated the need for organisations to be flexible and reactive in their strategies. This is the type of support that Fractionals can offer. While Interims are bound by the requirements of the contract (i.e. maternity leave), Fractional CFOs can be more flexible and are often engaged as a long-term strategic partner. Making the move from Interim to Fractional One challenge highlighted was being able to make the move from an Interim CFO to a Fractional CFO. “The balance of trying to get enough fractional work to come out of interim work can be a challenge,” says Lisa Collins. Networking is crucial to identifying Fractional opportunities. To work with small businesses in early stages of their journeys, it’s important to develop a professional network who can help to refer you work. One Chief Financial Officer in the room shared that they were a part of a group of Fractionals, rather than operating as a sole individual. This structure makes it easier for you to find the type of work that you want and excel at. Investment and fundraising With the turbulent economic climate over the last few years, Fractional roles have become more important to support with fundraising. Everyone in the room agrees that this point has been difficult recently. One of the bigger challenges has been understanding what businesses are looking for, with many competing with unrealistic expectations of valuation. The other challenge highlighted here is that investors buy in to the Founders and the product. The Fractional CFO can do as much as they can but ultimately, they need to buy into the overall business. It isn’t just about the Fractional CFO’s network, although this can help significantly. How can CFOs add value? A number of global factors have impacted the economy, and thus valuations, since the pandemic, from the Silicon Valley Bank collapse to the war in Ukraine. This has left many Founders unclear on how much their business is worth. “You have to have economics front and centre because that is ultimately what you’re driving towards.” In moments where it is harder to raise money, “it’s important to remember the fundamentals,” shared one of our roundtable attendees. Chief Financial Officers must add value by educating Founders and the wider business on how economic cycles work and their impact on capital. Building trust with Founders The success of a CFO, especially in this capacity, often depends on the relationship you have with the Founders of a business. As a result, a key skill that all Fractional CFOs must have, is the ability to communicate with and influence the board immediately. Part of this is understanding which business to join. One CFO shared that you should “choose the people, not the business. Choosing the right Founder is the most important factor.” Emerging technologies in finance With the likes of artificial intelligence (AI) changing how we work, one attendee asked how the CFOs in the room view emerging technologies. Does AI provide more opportunities for growth, or should you approach the software with caution? Automating tasks There were a number of positives to using AI highlighted in the discussion. The key advantage clearly lies around automation of tasks. Implementing artificial intelligence at the right time and in the right way will allow you to automate simple, time-consuming tasks. For instance, one CFO highlighted that data collection and analysis will be far easier with AI supporting you. There is even the opportunity for the tool to deliver recommendations based on the data it has collected. What is the value proposition? One of our attendees shared the importance of understanding the value proposition when it comes to adopting new technologies.  “AI and blockchain is simply the technology we use to deliver that value proposition.” The likes of AI and blockchain are undeniably great pieces of technology. They allow you to scale at a lower cost, but the tools are useless on their own and need the right people behind them in order to be worth the investment. In this CFO’s opinion, the introduction of AI is simply a new technology to continue delivering. Continuing to build our Fractional CFO community A big thank you to all of our attendees and inaugural members of our Fractional CFO community. It was incredibly insightful for everyone to share challenges and insights into the role. We’re continuing to build this community, to continue supporting your career growth. If you believe this community is a right fit for you, please reach out to our Founder, Lisa Collins, for more information. For more on career development, contact Tenzing Search! Tenzing Search is a specialist Finance and Accountancy Search business. We specialise in Senior Qualified appointments across the UK and USA, focusing on both Interim and Permanent appointments across all sectors.