Sometimes it is about turning chaos into clarity

It is not unusual for the finance system that once worked perfectly well to start falling behind as an SME grows and scales. Processes that used to be good enough begin to break down, small errors creep in, and before long the numbers become harder to trust and further removed from the true position of the business. This is often the exact moment a business realises it needs a fractional CFO rather than another pair of hands in the bookkeeping.

What kind of financial problems does a fractional CFO solve?

This was exactly the situation facing a fast growing marketing and PR agency who came to Sakura after several months of struggling with VAT issues, figures that clearly did not add up, and a bookkeeping backlog that never seemed to clear.

The team were working hard and doing their best, but the finance processes and structures underneath the business were no longer fit for purpose.

A first look at their QuickBooks setup was enough to reveal a number of significant issues:

• Transactions had been deleted or posted incorrectly, leading to missed VAT reclaims and overpayments to HMRC
• Multiple old and duplicated balances sat across debtors and creditors, meaning costs were duplicated and income overstated
• The profit and loss did not reflect how the business actually operated, with one sales line covering three distinct divisions
• Cash flow concerns persisted among the directors, despite significant sums being owed by strong, established clients
• There was no consistent bookkeeping process in place, making it difficult to track project progress, invoice at the right time, or identify unprofitable work

None of these issues are unusual on their own in a growing business. Together, though, they create the conditions that start to have real consequences. VAT quarters become stressful. Month end drags on longer than it should. Decision making becomes hesitant because the numbers simply do not feel reliable.

How does a fractional CFO fix a broken finance function?

This is where the role of a fractional CFO comes in. Rather than treating the symptoms, the job is to step back, diagnose the root causes, and fix the system properly. For this client, that meant:

• Correcting historic errors and recovering missed VAT
• Cleaning up the balance sheet so it reflected reality
• Putting in place clear daily and weekly routines
• Building a consistent, reliable month end process

The result was around £20,000 of VAT recovered, and within a few weeks the business had its first proper set of management accounts. For the first time, the directors could see clearly what the business was actually delivering, and where the cash had been going along the way.

What is the real outcome of bringing in a fractional CFO?

Clarity, and the confidence to make better, more informed decisions with growth firmly back at the centre of the conversation.

This is a good example of what a fractional CFO actually does in practice. It is never just about fixing errors here and there. It is about putting the structure and processes in place so a business can genuinely rely on its numbers, quarter after quarter.

Are you still not quite sure what your numbers are really telling you? Are your finance structures still fit for where your business is now?

If not, we would love to hear from you. Book a Discovery Session and let's talk through it together.

Frequently asked questions

What does a fractional CFO actually do? A fractional CFO provides senior level financial leadership on a part time or flexible basis. This covers everything from correcting historic errors and improving cash flow to building reliable reporting processes and supporting strategic decisions, all without the cost of a full time hire.

How is a fractional CFO different from a bookkeeper or accountant? A bookkeeper or accountant typically focuses on recording transactions and meeting compliance obligations. A fractional CFO takes a step back to look at the whole finance function, diagnosing why the numbers are unreliable in the first place and putting structures in place so the business can trust them going forward.

When does a business need a fractional CFO? Businesses often need a fractional CFO when growth has outpaced the finance system that used to work, when VAT or compliance issues start appearing, when cash flow feels unpredictable despite healthy sales, or when management accounts no longer reflect what is really happening in the business.