CFO Insights – Austin – Sep 2025 | vcfo

This article was co-authored by Donna Zinsmeyer and Deborah Doherty.

Behind the Numbers: CFO Insights from the Field

Austin Edition | September 2025

When unexpected changes impact your business, you can be reactive or you can be ready. In this edition of CFO Insights from the Field, Donna Zinsmeyer, Vice President, Operations, and Deborah Doherty, Consulting CFO, talk about building resilience into your budgeting process and strategic plan, rebuilding finance and accounting functions the right way, and how fractional CFOs add strategic foresight and hands-on leadership.

Donna Zinsmeyer

Vice President, Operations

Donna brings more than three decades of extensive experience in finance, accounting, and operational leadership to the role of Vice President of Operations. Since joining the team in 2014, Donna has been instrumental in driving organizational efficiency and aligning staff development with market trends and best practices.

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Deborah Doherty

Consulting CFO

Deborah Doherty is a veteran Chief Financial Officer with highly specialized multi-dimensional industry experience. Deborah’s industry knowledge spans across oil and energy, professional services, construction, real estate, management consulting, utilities, and professional training and coaching bringing a versatile leadership skillset to each of her clients.

How should CEOs and business owners approach budgeting processes differently now than they may have in the past?

Donna: Historically, clients approached budgeting as a rinse-and-repeat annual exercise that produced a static budget for the year ahead. They’d draft a budget in October, finalize it in December, push it out in January, then monitor variances throughout the year. That won’t work today. We’ve moved on to continual calibration and re-forecasting through dynamic scenario planning that builds in strategic levers and accelerates adaptability.

What will happen if churn surges, headcount needs to change, supplier costs increase, or if you need to pull back? How will any levers we want or need to push/pull/change throughout the year affect our balance sheet, income statement, and statement of cash flow? Going from static budgeting to dynamic planning also builds collaboration and shared ownership across the entire management team (not just the CEO and CFO) and effectively positions the CFO as a strategic thought partner.

Deborah: Cash flow forecasting has become non-negotiable. It’s essential to continually monitor your cash position, including your burn rate, cash runway, and liquidity. Cash flow visibility and liquidity are critical in business to maintain clear visibility of your cash and keep sufficient reserves on hand. Using a 13-week cash flow forecast is considered best practice, as it gives you a rolling, detailed view of your cash position. When you have a clear picture of your cash, you can confidently make decisions, pull the right levers at the right time, and navigate ups and downs without scrambling or being caught off guard.

CEOs and leadership teams often start out focused solely on whether they are “on or off budget.” But once I introduce them to the power of effective forecasting and dynamic planning, the value clicks almost immediately — especially when uncertainty is higher than usual. This approach reframes the conversation. Instead of a simple pass/fail view of “we’re doing great” or “we’re not doing great against the budget,” they begin thinking strategically: “What levers do we have, and what will happen if we pull them?” That shift not only gives them clarity, but also empowers them to take control, make proactive decisions, and navigate volatility with confidence.

What are some practical examples of how business levers are driving strategic planning and scenario planning?

Donna: I don't think I'd ever had a tariff as a lever in my financial plan, but with things changing and still not knowing where they’ll land, we're building in potential impacts like those for clients. You and your leadership team may need to evaluate supply chain alternatives, adjust pricing strategies, or reassess sourcing and vendor relationships to mitigate those tariff impacts. You don’t have to wait — and you shouldn’t wait — to take those steps.

Deborah: It’s the same with rising and fluctuating interest rates that add lots of uncertainty to your capital structure. You have to understand at any given time how these variables are affecting your cash flow and debt covenants so you can be proactive. Then, if you find you're not going to be where you thought you would be, you can take positive and proactive steps – like opening a dialogue with your banker about renegotiating terms today rather than reacting later to the aftermath of a covenant breach.

There are also indirect impacts to be mindful of. Many of our Professional Services clients rely on industries that are directly affected by interest rates, which often determine whether companies move forward with or pause planned projects. So with interest rates, tariffs, energy prices, or other macro factors, being one step removed doesn’t necessarily insulate you from impact, which again reinforces the importance of forecasting and understanding your levers so you can anticipate ripple effects and take action before they hit your bottom line.

Donna: Even if your business is not directly affected by tariffs because you're not sourcing or selling things internationally, your customers quite likely are. We're seeing that with nonprofit clients, too. They aren’t affected by tariffs but are affected by grants and government contracts. How do you staff for the unknown? What happens if a contract is put on hold or a grant loses funding? In the event of a major cash flow interruption, how do you then right-size your organization so you can still support your mission?

What engagement example demonstrates the impact a fractional CFO can have on both the finance function and the broader leadership team?

Deborah: Within six months of starting an engagement to replace a vacated senior finance role, several people in finance and accounting were on their way out for various reasons, as was the managing director. That created a big void but also a real opportunity to rebuild the accounting and finance team the right way. We stepped back to talk through what the team should look like going forward, then shaped a plan that blended the right internal talent with a few key external hires.

We quickly identified a great high-potential internal candidate for one of the key accounting roles and added a great senior accountant from outside the business. We were very transparent about what was needed and devoted time to documenting unambiguous standard operating procedures to make onboarding as seamless as possible. When year-end came around, we performed as though we'd been working together for years.

Additionally, the previous managing director’s tendency to focus on finance-related matters and defer operational attention to others on the leadership team had created a divide. To address that, I prepared budget forecasts for everyone as well as a concise and meaningful executive package that replaced the numerical scorecard they historically received but quickly dismissed and filed away. With the new forecasting insights and executive packages, every leader could quickly see whether they were on track and aligned on expectations. Their interest and engagement skyrocketed, and they continue to ask more meaningful questions.

Donna: Deborah not only filled that strategic CFO role but also mentored and coached those internal resources to elevate them. There were the right people, but they needed more experience and capacity to grow. At the same time, the now well-documented SOPs will help ensure the organization can continue to operate effectively with or without us.

Deborah: It’s also important to note that we couldn’t have achieved this if I hadn’t been welcomed to the table. I’m seen as a true member of the executive leadership team and strategic planning committee. If I were not involved in those activities and in the dark, leadership can’t effectively weigh how well their ideas would translate to reality. The CFO needs to be part of the leadership team so that everyone can row in the same direction - toward shared strategic goals.

What are common misconceptions CEOs and business owners have about fractional CFOs?

Donna: One misconception about fractional CFOs and HR leaders is that we're just a temporary fix or a placeholder executive. Being part of the leadership team in an active leadership role allows us to be the best possible partner and strategic advisor. We also aren’t solely focused on high-level abstract strategy. We roll up our sleeves and get work done - but we do need to understand where you are and want to go so that your finance and HR functions can effectively support that direction.

Our mindset is to act as your full-time CFO or HR leader and continually prioritize our focus. What should we be working on now? What should we prepare to move forward in the next 1-2 years? What pain points can we anticipate, and how do we alleviate them? The reason owners and CEOs bring in a fractional CFO is sometimes a root cause of pain points, but more often than not it’s only a symptom of something deeper, usually at the strategic level.

I don't consider us a vendor of finance and accounting services. Our people perform best as part of our clients’ teams, with the same degree of and perspective on responsibilities, accountability, and oversight that an internal leader would have. One subtle indicator of how well ingrained I am in a company is whether I'm invited to their holiday or summer party. If yes, I'm part of the management team. If no, I may just be seen as a vendor – which makes it harder to provide the proper support.

Deborah: I’m currently conducting a Workplan Analysis across a client’s business to assess key variables — including how workloads are distributed across teams, whether staff skills and experience align with operational demands, and whether current systems are optimized to support those functions. As part of this work, I brought in a vcfo controller to handle recurring data needs. Like all of our fractional team members, my goal isn’t simply to get things started and hand you off to someone else. I stay engaged for as long as is needed, serving as a strategic resource to ensure the plan is executed effectively and delivers lasting results

The beauty of vcfo and our fractional nature is that we have a deep bench of talent we can draw on to make these engagements cost-effective for the client. When the CEO asked whether bringing in a controller meant I’d be stepping away, I reassured them that isn’t how we work. Arguably, the toughest engagements are those where a client wants you to pop in, extinguish a fire, and pop out. We can do that, but it's rarely the most effective for us or for the client. Our goal is to stay engaged for as long as needed, providing continuity and strategic support to ensure changes take hold and deliver results.

When finance-related issues arise, what are differences between what CEOs and business owners think they need and what they really need?

Deborah: Clients often know there's something wrong but can’t always precisely put their finger on what it is. That’s okay, and why we’re here. What they shouldn’t do is wait for a problem to spiral before they look for help. Our approach is analogous to that of a physician or a mechanical expert. We get under the hood, determine the issues, opportunities, and ways to solve the problem(s), and then have a conversation with the client to give our recommendations and align on the next steps. Sometimes the issues are what they seem to be on the surface, but more often than not, they go deeper. That’s where our experience and perspective add the most value.

Donna: Founders, CEOs, and owners also tend to get overly focused on the operations side of the business - the next contract, next revenue stream, how they can grow revenue, or reduce material cost. That often comes at the expense of not allocating ample time or energy to their back office processes and systems. That’s essentially a debt that you have to eventually repay to the company, or it will result in severe limitations that you’ll feel when you can’t seem to raise money, aren’t ready for an acquisition, or struggle with your capital structure.

If you engage a strategic partner earlier, it's far less costly to do it right the first time than to try and repair it after fires flare up. We can bring the cavalry in to fix things foundationally, but the cavalry is more expensive. Investing in your back office, getting your chart of accounts set up correctly, monitoring the right KPIs, and solidifying forecasting early on will pay significant dividends and help you grow.

How do fractional CFOs adapt to the industry, market, and unique variables of the companies they engage with?

Donna: Around 80% of finance and accounting is consistent across most industries. Most skills and practices are very portable from one sector to another. Still, specialists are sometimes needed, which is why vcfo’s extremely deep bench of tenured industry leaders is so important. A CFO or HR leader with deep expertise and proven industry experience moves them from an 80% to a 100% player. There are specific industries where you need to have lived that life to be successful. A manufacturing company needs a CFO who has manufacturing experience. Nonprofits need a CFO who has grant experience. A professional services firm needs a CFO who understands project profitability, utilization, and pricing models. If I’m working on a project and need to bring in a CFO colleague with specialized experience or expertise, I’m fortunate to be able to do so.

Deborah: One of the most significant benefits to clients and my favorite parts of working at vcfo is our team environment, which is such an incredible network of pros. While no single CFO knows everything, I’ve never faced an issue or challenge that someone on our team hasn’t solved before. It’s so powerful to be able to tap into that any time I need to. It also extends beyond subject matter expertise - to the broader networks and relationships of the entire team, which really multiplies our capabilities. We’re all here to support each other and, most importantly, help our clients succeed.

Donna: We are a no-ego firm. Whoever has the answer to the question, that's who I want to talk to, whether it's our CFO with the most tenure, newest CFO on the team, a controller, or HR team member.

Key Takeaways for Your Business

Financial leadership today requires more than just producing reports or monitoring budget variances; it calls for dynamic strategic planning that aligns finance with strategy, engages your leadership team with meaningful information, and ensures that employees can perform even when circumstances shift. Fractional CFOs offer a balance of experience, adaptability, and objectivity that enables companies not only to weather challenges but also to emerge stronger and more prepared for long-term success.

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Need to strengthen your financial planning and build more resilience into your business? Invite us in for a conversation to learn how vcfo can help you. We’ve partnered with leaders from over 6,000 businesses in our 29-year history and are ready to put our experience to work with you.