Thanksgiving is a time to reflect on what we’re thankful for — family, health, friendship, and all those blessings that come along with them. But as Fractional CFOs, we know it’s also a time to reflect on financial health, both personally and professionally. Whether you’re an entrepreneur or not, financial peace of mind is a key factor in overall well-being. Thanksgiving is an appropriate time of year to take stock of where you are and where you want to go.
The role of a Fractional CFO is to provide expertise to enterprises that don’t yet need — or can’t yet afford — a full-time chief financial officer. Interestingly, many of the same principles we use in teaching business clients are equally applicable in the realm of personal finance. It’s a great time to reflect on both!
Thankfulness for Financial Foundations: Perhaps one of the most powerful things you can do in business is to acknowledge the financial foundation that you’ve built. As Fractional CFOs, we often work with clients to holistically review their financial statements, track revenue, and assess expenses. This time of year is a great opportunity to check in: Do you have an emergency fund in place? Is your debt reduction on track? By focusing on what you already have in place, such as your savings, your income streams, or investments, you are approaching your financial future with strength and clarity. The mindset of thankfulness will promote less stress while inspiring you to get proactive, e.g. making effective and educated financial decisions.
Setting Financial Goals for the Year Ahead: As a primary task, Fractional CFOs help clients set clear, actionable financial goals like improving profitability, streamlining expenses, or investing in new growth opportunities. Setting SMART-specific, measurable, achievable, relevant, time-bound-goals can give you much-needed structure and focus. Whether you want to pay off debt, save for a big purchase, or increase your investment contributions, your goals should be unique and specific to your situation.
Conscious Spending + Holiday Season Tips: The holiday season, Thanksgiving onward, can be a spending test to businesses and individuals alike. Part of our work is to advise businesses on how to manage seasonality in cash flow, whether it’s navigating expenses associated with holiday bonuses or projecting year-end inventory needs. Mindful spending means being intentional with your resources, i.e. is your holiday budget aligned with your long-term financial goals?
Improving Financial Systems and Habits: A Fractional CFO can assist a business in instituting sound financial systems-budgeting, cash flow management, and reporting processes to ensure that the business is running smoothly. Are you reinvesting in the business regularly? Do you have a system to track your expenses? Do you have automatic transfers to retirement or investment accounts? Strong financial systems create stability in businesses. Use this time to assess and strengthen these systems by setting up an app for expenditure tracking or reviewing an investment strategy with a financial advisor.
Giving Back + The Spirit of Generosity: Generosity works in personal and business finance, creating a great deal of good will and cementing relationships. Often when guiding businesses in their financial planning, we explore consideration to philanthropy: charitable donations, volunteer programs, or cause-driven marketing. Personally, Thanksgiving is just a wonderful time to reflect on how you can give back. Give to a cause close to your heart, if your budget allows, help out a neighbor in need, or give to local charities. Giving financially is not only good for the greater good, but it adds to your fulfillment and a sense of purpose.
Thanksgiving is a good time to combine thankfulness with financial common sense in your personal and business life. We see how small, thoughtful financial decisions establish long-term prosperity.
Take-away: Let’s take that spirit of gratitude this holiday season and convert it into a better financial foundation — one that will serve us, our families, and our communities long after this holiday season is over.
