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

Links:

• Twitter: https://x.com/theideamonkey
• LinkedIn: https://www.linkedin.com/in/gmichaelmaddock/
• Website: https://www.maddockdouglas.com/ https://flourishadvisoryboards.com/
• Book Link: https://www.mike-maddock.com/author

Ways to Tune In:

• Spotify: https://open.spotify.com/show/2I9O1Du2CFBfhGkvR1Oyem 
• Apple Podcasts: https://podcasts.apple.com/us/podcast/entrepreneur-intel/id1720785558 
• Amazon Music: https://music.amazon.com/podcasts/4d7fcd6e-e68f-4855-bb8a-8f872fc5b799 
• Podchaser: https://www.podchaser.com/podcasts/entrepreneur-intel-5556614