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Creating a Financially Healthy and Sustainable Business

Transcript 

Lauren (host): 

This is the Biz Doctor podcast. And I'm your host, Lauren Goldstein.

 

Lauren (host):

Welcome back to the show. I'm so excited about today's show because I have a special guest and Fractional CFO to small businesses. Kathy Svetina. In today's episode, we're going to talk about a very important subject, business finances. More specifically, how to create a financially healthy and sustainable business.

 

Lauren (host):

Business owners often struggle to understand their finances, but what if you could have someone that helps you understand not only what they mean, but also how to actually use them and give you the advice tailored specifically to you? Well, that is exactly what this episode is going to dive into. We're going to touch on three key points during today's episode.

 

Lauren (host): 

As a business grows, the more structure you need in finances, focusing on immediate profit and cash is not enough anymore. Second, how to make business financial planning less complicated and overwhelming. Third, what it really means to have a healthy and sustainable business. It is going to be an episode you do not want to miss.

Lauren (host): 

But before we expand on the subject of business finances and how to get your business finances working for you, let me properly introduce my guest expert, Kathy. Kathy Svetina knows the importance of financial information and has seen firsthand how it can make or break a company. She's the founder of NewCastle Finance, a company offering Fractional CFO services to women-owned businesses. For nearly 14 years, she did senior-level financial planning and analysis for Fortune 500 companies and saw firsthand how big companies use financial information to drive those companies forward. She started NewCastle Finance because she wanted to offer those same powerful financial insights to small businesses. She helped women business owners make great financial decisions that result in healthy, sustainable, and thriving businesses. 

 

Lauren (host): 

Welcome to the show, Kathy. 

 

Kathy (guest): 

Oh, thanks so much for having me here, Lauren, and I really appreciate it. 

 

Lauren (host): 

Yeah, I'm so excited to dive into the subject today because I know it is a subject that a lot of business owners struggle with. And before we really get going though, I would love for you to share a bit more about your journey that led you to becoming a Fractional CFO and starting NewCastle Finance. 

 

Kathy (guest): 

Yeah, like you said in the introduction, and thank you for that introduction. I was in corporate finance for 14 years and it was one of the things that really bothered me there was the fact that when you're in these big companies, you have so many people taking care of the finances of the business. You have the accountants, you have the treasury people, you have the tax people, you have people like myself, the financial plan, planning, and analysis people. But when you go to the small business space, there's really no one to take care of all of that for them.

 

Kathy (guest): 

You yet, you have the bookkeepers and accountants, but they really take care of the past and the present of the company. But no one's really to take, look at their future. So that's when I decided when I left my last corporate job, I decided, "What do I want to do? Do you want to go into the next corporate gig or would I try to do something with my own business?" 

 

Kathy (guest): 

And that's when I decided I really want to go and help small business owners, especially women business owners. They're in between that 1 million and 10 million space when it gets really complicated and you have to start thinking about all these different things in your business to help them figure out they grow so that they can grow in a healthy and sustainable.

 

Lauren (host): 

I love that so much. And I think that's spot on because I feel like sometimes when we're business owners, we're kind of throwing spaghetti at the wall, seeing how it sticks. And that's not a good philosophy when it comes to your finances, which is actually where I first want to dig into. Is I'd love for you to help us better understand the role of Fractional CFO and you know, more specifically, what is a Fractional CFO? How are they different from accountants and bookkeepers? And at what point do you know when your business needs a Fractional CFO? 

 

Kathy (guest): 

Great questions. So let's first talk about what is exactly a Fractional CFO because that term might be new to your listeners or just might a little bit complicated. So a Fractional CFO is essentially a person who is in your business for a fraction of the time. So it means that you have the talent and the experience of someone who is a senior finance leader or has been a senior finance leader in other companies in your business, helping you figure out the, your financial structure of the business so they can help with hiring accountants and bookkeepers and actually putting the systems and the processes of the finances together and help you figure out the future of the business. And when do you need to hire someone like this? 

 

Kathy (guest): 

It really depends. It depends on, for example, if you are a startup, do you need funding for the investors? From the investors? Because then you're going to have to put together all the financial plans, and you need someone to take a look at that and to be at those conversations with the investors with you. So a fractional CFO can help you with that. If you are a smaller business under a million dollars for example, you just might need a little bit of tweaking and someone to help you figure out whether you a bookkeeper or your accountant are doing a good job. You can hire a factional CFO for that. To oversee those different areas of the business.

Kathy (guest): 

Or if you are in a business that's really growing, then you're starting to put the structure together. You might need someone like myself to figure out what are the pieces that we need to put in place, and how do I actually plan for the future? Or if you are a bigger company, like, you know, 20 million to 50 million, then you need a leader that comes in and figures all of that pieces for you as well.

 

Kathy (guest): 

So it really does depend on the Fractional CFO's capabilities and what do you really need in the business. But it just as an overview as that there's someone out there that can help you with that particular problem that's, you know, not just transactionally related like a bookkeeper, an accountant would.

 

Lauren (host): 

I love that. I love that. And I think what I got from what you just shared is the biggest difference between a bookkeeper and an accountant versus a Fractional CFO is strategy and forward thinking. And I remember very, in my early days of business, is somebody shared something with me that broke my brain that said revenue is actually a lagging metric. It shows like historical. And when I understood that, I realized how much of my numbers, I didn't really know. So it sounds like a Fractional CFO is going to help you know your numbers, make sense of the numbers, and help you strategically plan for the future. Is that accurate? 

 

Kathy (guest): 

Yes, that's absolutely accurate. And it is true. The revenue, it is a lagging indicator of what's happening in the business. Because when you think about your business, every single thing that you do in your business, how you interact with the customers, how you're interacting with your employees, what's type of operations you have, and you know this, Laura, because that's what you do.

 

Lauren (host): 

Yeah. 

 

Kathy (guest): 

Everything eventually comes out in your numbers. So when you are seeing your P&L report or your balance sheet report or whatever type of reports you're getting, then it's already whatever you did to get there, it's already too late, so to speak. Because you can really go and, and change it already.

 

Kathy (guest): 

So if you really wanted to go and change it, you have to take a look at the future. You take a look at your business holistically, and that's what the strategy piece of a someone, like a Fractional CFO comes in handy really very well. 

 

Lauren (host): 

Holistic. That's honestly my favorite way to look at business. That's how we look at business operations and team and the consulting work I do. And so I love that you do that as well,because when I think of a Fractional CFO and revenue being a lagging metric, I see a lot of business owners where they look at the peaks and valleys of revenue and make decisions based on revenue, which, can create chaos in the business in most cases. If you've had it down month, then all of a sudden you're like, "Oh my gosh, all hands on deck. Let's go do this to increase revenue." But if to your point, you're not thinking strategically and in the future, then really you're just building a reactive business that's not healthy and sustainable.

Kathy (guest): 

Yeah, and that's a main point is when you are being strategic about it, when you actually implementing financial planning or any sort of planning, even operational planning, you need to have those pieces in the business because it's going to take you out of that reaction mode into being proactive. So those peaks and valleys, I mean, they're naturally part of business. You might have a seasonal business. You might not even realize it until you actually are starting to look at what has happened and what do you think will happen in the future? 

 

Kathy (guest): 

And the other piece, you know, sometimes people tell me, well, no one can predict the future, so what's the point of doing it? But that's not really the point because yes, you cannot predict the future, but the point of it is to take a look at, to see what do you think might happen so that you can see the opportunities that you might take. Maybe your industry is changing, maybe there's some sort of business opportunity down, down the line. Taking that time to actually look at it. 

 

Kathy (guest): 

And on top of that, you might be seeing, you know, some sort of issues six months or maybe three months or maybe a year down the line, so you can prepare for that. And if you can put the bricks to prepare for that right now, versus waiting until you know everything hits the fan, you be in a much better position.

 

Kathy (guest): 

You have already put the foundation together to figure this out. And you don't have to wait until everything, you know goes down the drain. So you can minimize the impact, you can maximize the opportunity and minimize the impact when you start to plan. 

 

Lauren (host): 

Yes, definitely. And I see this being so valuable with something that I think bites a lot of businesses that are trying to scale and grow in the butt, which is step cause. And not actually thinking about, "Okay, so you want to grow your business, but what actually impacts are you going to see on the bottom line in operations and team and finances when you actually get to that next level? What is your people cost look like? Do you have to get a new number of seats for software that you're using?"

 

Lauren (host): 

And so it sounds. When you actually have a CFO that's thinking strategically about this, they can help you avoid a lot of financial potholes that could cost you time and money down the road just because they're thinking like a chess master several steps ahead of where you are as an emotionally invested part of the business, which I think is a great part of Fractional CFO, is they're emotionally removed from the business.

 

Kathy (guest): 

Yeah, and also it's what they say that it's always hard to read a label when you're in the bottle, right? So you have someone who's removed from the business, who's outside of the business. But also the benefit of it, too, is that if you have a Fractional CFO, just the fact that they're Fractional CFO means that they're working with other businesses so they can see what else is going in other industry, what else is going in other businesses. They might see a certain trends that you might not. 

 

Kathy (guest): 

So it's almost like you have someone who has a 10,000-foot view of not just your business but other businesses, the economies, and the industry, especially if there is a specialized in your industry so that they can help you with that. It has this more of an effect of instead of being completely in the business like you might be as an owner. You have someone who has a much broader view of the whole land.

 

Lauren (host):

I love that it's going back to that holistic view, that big-picture view, and I think that actually busts the myth. I do hear from business owners and clients that I work with sometimes they're like, "But I want somebody who's fully focused on my business." And this love-hate relationship that I try and share with them of like, sure, it's good to have full-time focused employees, but in certain areas of expertise or roles, like it's okay and it's actually beneficial to your point, to have somebody who is Fractional CFO or who is part-time who has the unique outside perspectives because when you get in that echo chamber, that is your business. Sometimes it's really hard. To your point, one of my favorite things is you can't read the label when you're in the bottle, and you also can't see the forest for the trees when you're so close to it.

 

Kathy (guest): 

Yeah. Yeah. One of the other things too that I hear business owners ask constantly, it's like, "Do you have experience in my industry? I want to hire someone who's been working in that industry and there are two thoughts on that." And I want to offer this to your listeners. 

 

Kathy (guest): 

One is, yes, it's great to have someone who has, who speaks your language, and who understands it. But on the other hand, someone who's just been working in that particular in. Also can pick up a lot of bad habits from that industry that you don't want to keep reintroducing and introducing a new business. 

 

Kathy (guest): 

So having someone who has worked with a lot of industries, there's a benefit to your business because there's the bad things and good things that they can pick up from other places and look at it and see what makes sense for your business, what you should be doing, what you shouldn't be doing. So don't just get caught up on, "I want to just only work with someone who's particular in my industry." Go have conversations with people who haven't had that particular experience with your industry yet.

 

Lauren (host): 

Yeah, I think that's such a valuable point cuz. I can think to a couple of different situations where cross-pollination of different companies or industries. Like I know my experience in medical field, I've pulled in some things from there, like see one, do one, teach one admin days. A lot of different things that had I not had the experience in that field and brought it into business. Then, we would be working harder, not smarter. So I love that. I love that. 

 

Lauren (host): 

And that's actually a really good segue into, you know, we've been talking about healthy and sustainable businesses, and I think that here's a little bit of ambiguity about like, what is a healthy business? What is a sustainable business? What does that actually mean as a business grows and what does a business owner really need in their financial plans or their financial landscape to make it as healthy and sustainable as possible? 

Kathy (guest): 

So I will give you an example of what would not be a healthy and sustainable business, even though numbers would look extremely good if you look at the income statement.

 

Lauren (host): 

Okay. 

 

Kathy (guest):

Let's say for example, that you are selling something and things are going great, but also obviously you have the cost portion as well. So when you are growing, you are also growing your team. What you could do is you could say, "My team has the capacity and I can go and maximize it, and they can work over time as well so that I'm not increasing the cost, especially if they're salary. And on top of that, I'm going to go and slash my marketing costs because things are going great. I don't really need to do that. I'm going to save money in there as well, and maybe I can save some cost on other things as well." 

 

Kathy (guest): 

So what you're going to end up with is you're going to have, essentially, you might have a lot of profit because you're going to have all those sales coming in. Your team is working really hard and you don't have that much cost in other areas, and your profit is absolutely killing it. You're great, but you buy look great in the numbers, however, that is not a healthy and sustainable business. 

 

Kathy (guest): 

And the reason for that is because if you are overworking your team, if you are overworking your people, if you're not investing in your marketing, if you're not investing in your pipeline, you're not spending money on that. If you're not spending money on the systems and the processes and actually, you know, having the right tools in the business because you're so concerned about the cost. Things might be good for maybe a couple of months, maybe a year, but things are going to start breaking down because people are going to leave. You're not going to be out in the market. People are not going to know about your business because you're not marketing. 

Kathy (guest): 

Thinking about the health and sustainable business is not just looking at the numbers because the numbers are important, but the other thing that it's important too, is what are the decisions that I'm making right now? How are they going to affect me in the future of the business? So just don't look at it right now. Look at it. What are the decisions that I'm making? What type of effects are going to be in the future. Are they going to be where I want to be or are they going to be problems with this particular decision that I'm making? So that's what it means to have a healthy and sustainable business, is to look at it again, going to that keyboard holistically. 

 

Lauren (host): 

Oh, I love that so much because I do think there's been this, I don't know, culture. I hate to say this, but culture of hustle, where you like work your employees to the bone and if you're not there like given 110%, then what are you doing? I'm like the anti-hustle consultant where I'm like, how can we do this more efficiently? How can we have a fulfilling business and a fulfilling lives, both for the business owner and the employees? And so I love what you said about, it's not just about the numbers. It's about how are the decisions you're making today impacting the business later and really having the systems and processes set up to have that efficient and sustainable and healthy business.

 

Lauren (host): 

And it. It kind of, I don't know if anybody else exhaled when you said that, but it's like, "Okay, great. So maybe my profit margins aren't just magically amazing, but in the long term, maybe having less profit now to set the business up for sustainable growth later is actually where we need to be." 

 

Kathy (guest): 

And there are also seasons in the business, right? So when you are growing, if, and especially if you're in the beginning stages of growth, you're going to have to invest in your people, in your processes, in your operations. So you're going to have more cost with that. Um, you're going to have to probably bring in consultants. You're going to have costs associated with.

 

Kathy (guest): 

And when in the other season of the business, you might be more because you're reaping the rewards of what you've had before and the way how you did your marketing, the way how you trained your people, now you can actually spend less and do more. 

 

Kathy (guest):

It depends on the season of the business. So don't look at it just what the cost and the income is. But think about it in terms of what is happening in your business. What are you trying to achieve? What are the current initiatives that you have? And understand the initiatives come with a certain price. And what type of price are you going to be paying for that? It might be financial, it might be in terms of the time investment. It might be other types of investment that you're going to have to put in. But just understand, you know, just because things are like they are right now, it doesn't mean that they're going to be like this all the time. Right. 

 

Lauren (host): 

Yeah. It makes me think back to this quote that I saw on Instagram of all places that basically said, if you did the exact same thing today, like everything that you'd done today, every day for 365 days, would you be where you want to go? And I think that that's like a really powerful question, especially with your business finances, because I think so often we get stuck in this reaction mode where we're like, "Oh, let's save here, or cut here or spend here without having that." 

 

Lauren (host): 

You know, I talked about on this podcast, the Four C's of a High Performing Team, but there's also the four C's of a high-performing business, and it starts with clarity and it starts specifically with the clarity of vision. And so what I loved about what you just shared is looking at the vision of where your business is going, and strategically seeing what sacrifices or exchanges, priorities or strategies need to happen to get you there, rather than just kind of looking at the surface numbers and making uninformed decisions. Do I have that right? 

 

Kathy (guest): 

Yeah, yeah, that's exactly right. That's not just specific for small businesses, for big businesses too, and I've seen them making the same mistake is that they just operate from a lot of the big businesses, especially that operate. How do we cut? If you are trying to grow, you're trying to focus on how do I use the resources that I have, the people resources, the money resources in the most optimal way that I can grow. Yes, cost cutting might be a part of it, but that's not really the point. 

 

Kathy (guest): 

If you are growing, that means you're probably going to have to use it in a different. Or you might actually add some cost to that and you know, that's okay. It's just the season of the business where you're growing, but don't try to grow and then cut costs at the same time, because that's when you start butting heads and you're essentially stagnating. You're not going anywhere.

Lauren (host): 

Yeah, absolutely. And I think there's also a really fine line between cutting necessary costs and trimming the fat like you want to have a lean business that's not wasteful, or you know, you're not paying for seats that you're not using in some SAS software, et cetera. And then, but at the same time, knowing what is a necessary cost to get you to the next level.

 

Kathy (guest)

Yeah, I love that it really is trimming the fat as much as possible, but you do not want to go and try to trim the muscle because that's where the problems happen. 

 

Lauren (host):

 Exactly. That's where the breakdowns happen. And that's not, to your point, healthy or sustainable. 

 

Kathy (guest): 

Exactly. 

 

Lauren (host): 

And in that same vein of financial planning, I think sometimes people think that business financial planning is really similar to personal financial planning. But it isn't, is it? 

Kathy (guest): 

No. It is planning, but people usually, when you tell them, planning to think of 401ks and then take off stocks and then take off all of that. Yes, you can invest in stocks and money market and all this stuff as a business, but hat's not really what we think about the financial planning. 

 

Kathy (guest): 

The financial planning in the business sense, it's really looking at the resources that you have in your business, meaning, Your cash,all of you know the people that you have, how many people you have to hire, what do you currently have that supports your business operation and how do you plan that for the future? So trying to figure out, how is the cash going to look like? How is your revenue sales going to look like and how is your cost structured going to look like? 

Kathy (guest): 

So in the simplest ways, if you just focus on the cash sales and cost, and trying to predict where you going to be in the next couple of months, in the next year or two in there. The embodiment of the financial planning for the businesses in the simplest way possible.

 

Lauren (host): 

I love when people make it so simple, because I think business finances so intimidating. So I, I love that you make it so simple and so easy to understand. I think that you shared with me, an analogy about a house and the five pieces of business needs for healthy finances. So why don't you share that analogy with our viewers, because I think it's so powerful to really drive this home.

Kathy (guest): 

So the analogy of the house comes into place when you are growing the business and you know, it's not just about looking at your P&L statement and your cash, whether you have enough cash in the bank. But when you start to grow, you're going to start feeling, "I need more structure in my finances. "Usually when people come to me, it's like, "I need more structure. I have no idea how to do it. NO, I need it. What do I do?" And this is where this five piece comes in. 

 

Kathy (guest):

And I like to use the analogy of what house, because people relate to this better. So just like, let's start with the first thing, which is the foundation. So just like the house has a foundation so that it doesn't crumble down. You need the foundation of good data, which means that you have the foundation of an accountant, a bookkeeper, someone who is educated and knows how to keep track of the data. That doesn't mean that you have someone in your office, like an office manager doing your books. It needs to be someone who is educated in finances because just a lot of business owners think that putting data in the, in QuickBooks or Zero, whatever you are using, is just categorizing it. There's a lot more to that. And the reason why I need that is because you're going to be making decisions on that data and you need it to be as accurate, timely as possible. So that's that foundation. 

 

Kathy (guest): 

Then the second thing is have the walls of the house. So that again, the house can actually grow, right? So using that data with financial analysis is you are looking at the data every single month or every week if you can, and trying to figure out what are some of the insights that I can get from this data? What are the trends that I'm seeing? Are we in a seasonal business? Are we not in a seasonal business? So that's why it's really important that you have that data correct so that you can do this type of analysis. 

 

Kathy (guest): 

And then the third piece is, I call it the interior design of the house which, just like you would not put a bathtub in the middle of a kitchen because it just doesn't make sense. Right?

 

Lauren (host): 

Right. 

 

Kathy (guest): 

You want to use the right tools so that it gives you that information in the best way possible. So if you are using let's type of software where you have to go and wait three months to get the actual results out because everyone has to massage. That's not going to serve you. You have to have the right type of tools and system in the business so that you get that information on a regular basis and then it's updated.

 

Kathy (guest): 

So now that you have the foundation, you have the walls, and then you have the right interior design, so to speak, in the house. That's when you can start planning because all of this really supports the planning. That's what financial planning comes in. 

 

Kathy (guest): 

Making sure that you have the budget done. And not only the budget, but also if you just have a budget every single, you know, you do it every year, but you put in a drawer and you never look at it, that's really not going to serve you. 

 

Kathy (guest): 

So just like things ha change in the business, you also want to update those financial projections that you have into a forecast. Looking at it, every single, three months is usually a good cadence for that. Seeing what has changed, what hasn't changed, what do we need to do? How are different from where we thought we would be. 

 

Kathy (guest): 

Also doing like strategic type of planning in the three to five years. Where do you want your business to be? Because for example, if you want to sell your business in five years, you gotta start planning for it today. Like today, yeah. That's the roof of the house. The roof of the house really protects everything that's down below. But to get to the roof of the house, you need to have that foundation.

 

Kathy (guest): 

And then the fifth piece is the internal controls, which is the alarm of the house. And this is where a lot of small businesses fail because they do not safeguard their assets correctly. And unfortunately in small businesses, if you have someone. Who's not really honest do your finances, they can easily go and, steal your money from you. And this is the reality of the small businesses because they don't have those internal controls because they're either not aware of it or they just trust their financial provider to just do everything for them to pay the bills, to reconcile the bills, to put the bills in. These are different financial transactions and you need someone to do an oversight for it. So having that security alarm. Having that, those internal controls is really important. 

 

Kathy (guest): 

And the nice thing about the structure is that if you start implementing this at a million or maybe 2 million revenue, Even when you're at a hundred, even in a billion dollar company, you still have those five pieces in. So when you put those pieces together and when you have that structure, it's going to serve you well. No matter how big your company is really. The only thing that's going to change is how many people are going to be supporting those different pieces in there. 

 

Lauren (host): 

Oh, you made it so simple and so relatable. I love the analogy of the house and it also reminds me a little bit because something that I work on with my clients is to that point, not creating a 90-day plan or a year plan and shoving it in the drawer, but recognizing that your business is a living, breathing thing that changes as to your finances. So it's a little bit like a plane on autopilot. If you're not checking in every so often, then you're going to end up in Antarctica versus South Africa because you just weren't paying attention. It were those tiny decisions every day, day after day that either keep you on course or they don't. 

 

Lauren (host): 

And so I love how this five pieces of a house really allows your business to have the financial support that it needs, but also the financial support it can grow with. And it's not just something that you're going to have to continually change. You can't just set it and forget it, but it's something that's going to grow with the business. 

 

Kathy (guest): 

Yeah, exactly. We talked about having the right tools, having the right systems, and that's that internal design that is going to grow with you as you're growing the business. You know, right now QuickBooks might be great for you, but as you're growing, you're going to have to have a more robust ERP system. But the system is going to change. Just the fact that, but you still going to need to need a separate system for that. That's going to give you the data. 

 

Kathy (guest): 

So at every season of the business, as the business grows, look at all of those five pieces and say, do I need to hire people? Do I need to change certain things in there? Do I need more processes? Do I need more systems? What do I really need to support this? But the five pieces are always going to stay. 

 

Lauren (host): 

That's so great. That's so great. Before we wrap up, because I mean I could talk about business finances all day. Is there a piece of advice or a tip or something or a question that you wish I'd asked that you think our listeners would just, it would change a perspective or just be like the perfect thing that they need to hear today about their business?

 

Kathy (guest):

I think we are recording this at the end of the year. So what I would say at the end of the year really go and start planning for the next year. So put together the budgets for the next year. If you can't sit down with your bookkeeper, accountant, and hopefully you have someone who does finances for you that can help you with it, to set the budgets together and in the springtime. I like to do this in the springtime because the fall is for the planning. Just like squirrels up planning to put, you know, the nuts everywhere. Put the nuts for the next year with the budget. But when the springtime comes like March, April, May, start planning for your businesses for the three to five years. Do that strategic planning and when you start to do this, and you put this on your calendar every single year, so the short term planning in the fall and long term planning in the springtime, and they both feed into each other as well. Put it on your calendar and really start thinking about your business so that you can be more proactive versus reactive. That that is definitely going to help you, grow to where you want to. 

 

Lauren (host): 

Yes. Being that making that perspective shift to be proactive instead of reactive is huge. And I know you've said a few times, you can do some of this with your account or your bookkeeper. I have a silly question, but what is the key difference between an accountant and a bookkeeper? Do you need both? Can you have just one until you have that CFO? 

 

Kathy (guest): 

So that's a great question. Bookkeepers are transactional. So they will essentially go and make sure that your bills are paid on time, that everything is categorized correctly, that every data, financial data that is happening in your business goes into the right places. And that record it correctly. Like I said, a good bookkeeper has accounting background and will know how to record things. It's not just categorizing it in the right expense or revenue or whatever you have. It's also making sure that the right places in the finances are being touched, unless the appropriate places in the finances are being touched in that transaction.

 

Kathy (guest):

The accountants, however, are more tax-focused. It really depends on what type of accountant you are working with, but majority, a lot of them are tax focused and they can help you with figure out, what does it really mean, what do those numbers mean, how to read them and what to do with. 

 

Kathy (guest):

Having those two people in your business is going to be a great foundation when you're starting to plan. And if you really need help with more strategic type of planning, that's where the Fractional CFO comes in and they work with accountants and bookkeepers, for example, like I do not work with a business unless they have an accountant and a bookkeeper in the business already. 

 

Kathy (guest): 

And if they don't, we go and source them because a Fractional CFO cannot work without those two pieces in the business. I hope that answers your question. 

 

Lauren (host): 

That did. Oh, that was so great. That was great. And wow, this has been such an informative episode packed full of so many golden nuggets and ways to reframe business, finances, and how we think about it, and especially how a CFO comes in. So thank you so much for being on the show. Tell our listeners how they can connect with you and if they want to work with you or get more of your amazing knowledge, where they can find you? 

 

Kathy (guest): 

Sure, so people can find me at newcastlefinance.us. You can also find me on LinkedIn under Kathy Svetina. I'm the only one there or if you have a growing business and you have all the questions about the growing business, I also have a podcast out there called, Help! My Business is Growing and you were on it as well too. So check out Lauren's episode. 

 

Lauren (host): 

Yes, yes. I love your podcast at and you can check it out in newcastlefinance.us/podcast. You have so many great guests in on your podcast and you have such a wealth of knowledge, so thank you so much for being on and just sharing all this knowledge with our listeners. I really appreciate it. 

 

Kathy (guest): 

Thanks so much for having me on, Lauren. It was a pleasure. 

 

Lauren (host): 

Of course. All right everyone, that's it for this week's episode. Thank you so much for listening in. If anything we shared sparked something in you, we'd love to hear from you. So let's connect, tag or DM me on Instagram at it's Lauren Goldstein or LinkedIn or wherever you hang out on the interweb. Also don't forget to subscribe to. You're the first to get notified when our next episode is live and ready for your ears. Thanks so much for listening, and until next time.

 

Lauren (host): 

Thanks for listening to The Biz Doctor Podcast. 

 

Lauren (host): 

You're probably wondering what your next steps are. So here are some options for you. No matter what, head to the show notes or to my website at goldenkeypartnership.com. That's where you'll find links to do at Diagnostic Deep Dive with me and my team. 

 

Lauren (host): 

This deep dive will help us identify what is really holding you and your business back for more profitability, impact, and sustainable growth. After that, register for our next workshop. Ooh, I host them often, and it's a great way to interact with me in a virtual room and get your questions answered. All of that info is on our website@goldenkeypartnership.com.

 

Lauren (host): 

Finally, if you love The Biz Doctor podcast, I'd be grateful if you share it with your friends and colleagues on social. Or give us a five-star review wherever you listen to your podcast.