There's an inevitable decision every Fractional CFO firm owner has to make: 
Am I going to be a Fractional CFO or am I going to be the CEO of a Fractional CFO firm?

Let me be clear here - there is no wrong answer. But you do have to decide which is right for you.

If you decide that the CEO route is right for you, then you'll need to determine how to transition your existing clients to a new Fractional CFO.  

If you're anything like me, the idea of handing over your clients likely brings you a ton of anxiety. After all, you've been serving them with excellence for some time now, and they've come to expect nothing but the best.

All that said, I was determined to make it work.

Our process looked like this:

1. Have the new CFO join a client call
2. Introduce the new CFO
3. The new CFO handles the relationship going forward

Thirty days later, we lost 3 clients and almost lost a few more. In all, it was a 6-figure dumpster fire. It wasn't because the CFO did a bad job - it's just that the handoff process was ill-conceived and poorly thought out.

We went back to the drawing board and developed a 5-step handoff plan that has been working flawlessly since. We follow this plan whenever one of our CFOs needs to hand off a client for any reason.

Today, I'm going to share our handoff process with you so that you can bring on new CFOs, hand over your clients, and start focusing on CEO work.

Let's dive in.

Watch and Learn

Before the incoming CFO does anything else, I have them review the last six months of client calls, as well as the recorded sales calls.

(Note: this is ANOTHER reason to record your sales calls!)

This gives them a front row seat to:

• The client's journey to date
• The strategic direction we're headed
• Current obstacles
• Momentum and recent wins/challenges 

Yes, they could simply review the client's reports to get background information. But more important than background is context, and context is everything. 

Data Dive

In parallel with the first step, we have new CFOs perform the financial analysis work for the clients they'll be inheriting. 

We have completely mapped out and documented the entire financial analysis process. This makes it easy for them to jump in to start number crunching and performing evaluations.

There are 2 primary benefits to this: 

1. Because the process is documented, the new CFO's reporting is consistent with the old CFO's.
2. The learning curve is drastically shortened - which means they can add value faster. 

Silent Passenger

Once the new CFO knows the players and understands the numbers, it's time to start joining the calls.

The existing CFO will give the client a heads-up that another team member will be observing upcoming calls (no one ever objects).

Then the new CFO joins as a silent participant for the next month or so.

The new CFO and I pre-plan some areas where they can offer insights or words of wisdom along the way.

This low-pressure exposure gets the client used to seeing a new face in the room.

Take the Wheel (with Training Wheels)

By now, the new CFO knows the client and has started building rapport. 

When I sense we're ready for this step, I'll have a conversation with the client to let them know that we're moving towards a handoff. I let them know that I'll still be directly involved for a while, and I'll always be monitoring on the backend. 

It's important to understand that you aren't "asking" the client if this is ok. You're gently letting them know that it's happening.

Tact is the name of the game here.

After those conversations, it's time for the new CFO to lead the calls with you riding shotgun.

The outgoing CFO (aka you) remains on the calls during this transitional phase, ready to step in as needed.

The duration of this phase depends on the client's complexity and the new CFO's confidence, but we never rush it. If you're hiring well, this period might only last 1 month. It might need to go 2. If they're not ready by month 3, something is wrong.

This is the most critical step in the process—get it right, and the rest runs smoothly.

Go Solo

Before we fully hand over the reins, four conditions must be met:

✅ The client and the new CFO have an easy, natural rapport
✅ The new CFO knows the client inside and out
✅ The new CFO is fully confident they can handle things independently
✅ The client explicitly agrees it's time to make the switch

When all four boxes are checked, it's go time. The new CFO runs point, the client is happy, and you get to do CEO stuff.

The Insurance Policy

The TOP concern that most CEOs have about handing off their clients to other Fractional CFOs is around quality. How can you ensure quality standards are met if you're not delivering services?

It boils down to three things:

Hiring well
Quality assurance
Processes & Procedures

I recently wrote a free guide outlining the top 5 processes every firm needs in order to scale in 2025. You can check out that guide HERE.

That's all for this time.

See you next week.