Running a business is a constantly evolving challenge. What works for your company at $250K in revenue probably won’t meet your needs when you reach $1M, $5M or $25M.
And this is particularly true when talking about financial advisory.
At launch, it makes complete sense to keep your CPA engagement lean. Money’s tight, finances are straightforward, and you’re more worried about making sales than anything. As long as your CPA keeps you in compliance at a good rate, you’re happy.
But as the years roll on, sticking with the CPA you hired on price can wind up costing you.
- Hard to get ahold of
- Unresponsive
- Quick, incomplete answers to complex questions
- Lack of advisory service offerings
- Backward-looking, responsive approach
- Zero forward-looking planning and goal setting
Catch this early, and you’re in great shape. Realize too late that your advisory setup is unequipped to handle your next growth stage, and you could miss out on big opportunities.
Understanding when and why to evolve your financial advisory team is key to avoiding surprises and costly mistakes
What do we mean when we say the type of financial guidance you need changes as you grow?
Early on, you might only need help with basic bookkeeping, tax compliance, and entity formation.
But later, as the complexity of your numbers grow, the more you need expert advice on what those numbers mean and how to use them to make smarter business decisions.
Budgeting, cash flow forecasting, multi-state compliance, financing, capital strategy, profitability analysis, value creation, growth projections. The time will come that you need to invest in taking a forward-looking approach.
The challenge is recognizing the inflection points, those moments when it’s time to restructure your advisory setup to get the support you need. This restructuring typically takes the form of a larger CPA firm, an expanded CPA engagement, and a fractional CFO.
Common signs you might be hitting a financial advisory inflection point
- You’re hiring your first full-time employee or expanding your team faster you’re your ability to manage it
- Cash flow is becoming unpredictable, or you’re struggling with budgeting and expense management
- You’re opening a second location or expanding across state lines
- Your business is considering financing, loans, or investment from outside investors
- Department-level reporting and KPIs are needed to make operational decisions
- You’re exploring acquisitions, mergers, or strategic partnerships
- Leadership is asking “what if” questions that require scenario planning and financial modeling
- Regulatory, tax, or compliance requirements are becoming more complex
- You’re thinking about exit strategies or succession planning
Sometimes these inflection points come at financial milestones. Other times it’s just a gut feeling. But recognizing these moments early is crucial, because the sooner you adapt your advisory team, the sooner you’ll get financial pain relief.
