Transitioning to In-House Finance Team

Transitioning from outsourced to in-house finance operations?

Insight from Mostly Metrics

Navigating the transition from outsourced to in-house financial operations?

It can feel like the moment before a stage debut. The curtain is about to lift, and there’s no turning back to the comfort of the rehearsal room

That's the vibe when you say goodbye to your fractional CFO and bookkeeping team.

Day one on your own feels like you're navigating without a map.

Here's a game plan that might raise some eyebrows: Splurge during the switch-over. Why? Because smooth transitions are worth their weight in gold.

Split the move into two clear phases:

1. Accounting

2. Finance

Let the outgoing firm know you plan to internalize operations over a few months, aiming for a smooth quarterly transition.

Propose a deal: Keep them on retainer for a fraction of the three-month fee. You'll be surprised how agreeable they are—after all, their goal is to see you fly solo successfully.

Consider poaching talent directly from your fractional firm. It's not uncommon, and it can ensure continuity.

Just ensure you're not stepping on any legal landmines. Sometimes, a finder's fee is involved, like a $10K thank-you note for snagging their FP&A Analyst.

For the accounting shift, pause until your new Controller or Accounting Manager is in the building.

They'll have the insight to ask the questions you haven't even thought of yet.

Finance-wise, dissect the outgoing firm's model like a frog in biology class. Use it to understand the business's financial heartbeat.

Then, craft your model and confirm it with the old firm to ensure alignment.