Independence by Design™ #438: What a Great CFO Actually Does (And Why Most Owners Have the Wrong Expectations) with Pat Hobby
This episode sets the bar. Pat Hobby, my former business partner, is one of the best CFOs I’ve ever worked with. He’s not just a CPA or an operator—he brings an investor mindset and decades of experience managing financials with the purpose of building long-term value. In this conversation, we break down exactly what a business owner should expect from a high-performing CFO—and why most don’t even know what that standard looks like.
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We cover the difference between accounting and finance, what good financials actually look like, and why clean books are just the beginning. Pat walks through how to build an effective monthly reporting package, how to integrate the three financial statements, what capital allocation looks like when it’s done well, and how to run a value gap analysis that ties directly to the owner's long-term goals.
If you’ve ever wondered what your CFO should really be doing—or what financial clarity should actually feel like—this episode is your blueprint. This is the gold standard.
Pat Hobby is a seasoned CFO, CPA, and the founder of The CFO Advantage, a fractional CFO firm that helps business owners gain true financial clarity and use their numbers to drive long-term value. He was also the cofounder of Ryan Tansom’s former business, where they built a fractional CFO model serving dozens of clients across multiple industries. Pat has guided companies through ESOPs, private equity transactions, and complex financial transitions, always bringing an investor mindset and operational discipline to the finance function. He’s known for making complex financials simple, actionable, and aligned with ownership strategy.
Chapters:
- (00:00) Why this episode matters for every owner
- (07:45) Pat’s journey from CPA to CFO with an investor mindset
- (08:07) Strategic partnership between CFOs and business owners
- (12:00) Importance of clean financial statements for decisions
- (15:36) CFO roles versus controller responsibilities and paths
- (22:29) Developing accurate monthly budgeting and forecasting
- (31:31) Balance sheet: foundation for accurate financial reporting
- (38:40) Normalized EBITDA and understanding true business value
- (43:41) Annual budgeting, forecasting, and managing trade-offs
- (1:07:11) Long-term planning, value creation, and independence
- Rate, comment, and share with the owner/operators you know!
Ryan Tansom is a seasoned entrepreneur, speaker, and the founder of Independence by Design™, a transformative ownership framework for growth-oriented business owners. After turning around and selling his family business in an eight-figure exit, Ryan spent over a decade dissecting the lessons learned from his journey. His mission is to help other business owners avoid the pitfalls he encountered by providing them with the tools and knowledge to align their business operations with their personal and financial goals.
With a deep understanding of the challenges faced by owner-operators, Ryan developed Independence by Design™ to empower owner-operators to create sustainable cash flow, grow their company’s equity value, and achieve true independence. He has shared his insights on hundreds of stages, including Vistage, EO, and industry associations, and has reached over 500,000 listeners through his podcast.
Ryan is passionate about helping business owners get unstuck from the day-to-day grind and design a business that serves their life, not the other way around.
Resources:
Website: https://cfo-advantage.com/
LinkedIn: Pat Hobby
Independence by Design™ Workshop: https://ryantansom.com/independence-by-design-workshop
Independence by Design™ Ownership Coaching: Ryan Tansom’s Ownership Accelerator programs and coaching https://ryantansom.com/coaching
Ryan Tansom Website https://ryantansom.com/
Ryan Tansom LinkedIn https://www.linkedin.com/in/ryantansom/
Ryan Tansom Twitter https://twitter.com/RyanTansom
Ryan Tansom YouTube https://www.youtube.com/@ryantansom
Ryan Tansom 30-Minute Ownership Strategy Call https://calendar.app.google/tsKk7z6ohugDchWq8
Sound Bites
"The CFO’s job is to make sure the financials are actionable—not just accurate." - Pat Hobby
"Clean books matter, but if you don’t know how to use the numbers to run the business, they’re not helping you." - Pat Hobby
"You can’t do capital allocation or drive value growth if your statements aren’t integrated and you don’t have a forecast." - Ryan Tansom