FREQUENTLY ASKED QUESTIONS
​​We get questions constantly about what we do and the strategies we implement to improve our clients' businesses. Here, we share those with you to help you get a leg up against your competition.
STRATEGIC FAQs
Q: What Exactly Does a Fractional CFO Do? A fractional CFO provides part-time, high-level financial strategy and support—helping your business manage cash flow, improve margins, plan for expansion, and build data analytics tools without the cost of a full-time hire. Smaller businesses often need someone who can toggle between CFO-level strategy and Controller-level detail. A fractional controller is a part-time financial expert who manages your day-to-day accounting, administers software systems, builds budgets, and reports on key performance indicators (KPIs). In simplest terms, a Controller is often backward-looking; a CFO is forward-looking.
Q: How do I analyze the cost of goods sold (COGS) and my pricing strategy? Take three steps to start: Prime Cost Tracking – Closely monitor food and labor costs. Aim for prime costs (COGS + labor) to stay around 60% or less of total sales. Adjust portions, sourcing, or staffing to improve margins. Competitive Menu Analysis—Use AI tools to track competitor pricing and identify areas where you can increase prices without losing customers. Hint: Beer pricing is often the most flexible, as customers are less price-sensitive to drinks. Strategic Menu Pricing – Offer a range of prices to encourage spending. Use decoy pricing (e.g., an expensive item making others seem more reasonable) and highlight high-margin items to drive profitability while maintaining a strong value perception.
Q: How can I improve my cash flow and ensure I have enough to cover expenses? Plan for Slow Seasons: Analyze past sales data to anticipate cash requirements during months of low revenue. Accumulate a financial reserve during peak seasons. Negotiate Payment Terms: Collaborate with vendors and landlords to adjust payment schedules. This will enable larger payments during months of higher income.
Q: What accounting software is best suited for breweries? Combining general accounting software with brewery-focused tools helps breweries stay efficient and financially organized. Popular choices include QuickBooks with add-ons, Xero, and industry-specific platforms like Ekos and Beer30. Many breweries also use Toast as a POS system for taproom sales and labor hours, plus Bill.com or Melio to simplify payments and cash flow. Additionally, more breweries are turning to data visualization tools like Tableau, Looker, Fathom, Syft, Power BI, and Domo to analyze trends, optimize costs, and improve decision-making.
Q: When Should a Brewery Consider Hiring a Full-Time CFO? Breweries should typically consider hiring a full-time Controller when revenue hits approximately $15 million and a CFO when revenue hits approximately $25 million. As revenue surpasses $25 million, a full-time CFO becomes essential for scaling operations, managing investor relations, monitoring key margin drivers, planning capital investments, and developing long-term financial strategies. At that stage, dedicated leadership is crucial for sustainable growth and success.
FAQs on OUR SERVICES
Q: What does a fractional CFO cost for a small brewery? At TDF, we understand the importance of cost management. Our experience allows us to scope our work and keep our costs within a percentage of revenue for providing bookkeeping, accounting month-end close, and financial analysis. Let's talk about your current finance and accounting costs as a percentage of your revenue to see if we can improve.
Q: How do I find a qualified fractional CFO with brewery experience? A qualified fractional CFO for a brewery has a background in manufacturing and restaurant operations. If restaurant operations are your main profit drivers, the restaurant experience is more important. Restaurant accounting is often times more complex and carries a higher risk of errors.
Q: How do I measure the ROI of hiring a fractional CFO? Deciding to hire a fractional CFO is not something to take lightly. When hiring a fractional CFO, you can measure your return on investment by analyzing several key areas. Looking at cost control and savings, a 1% improvement in food, labor, or overhead costs at a $10M business covers the cost of a fractional CFO in one year. You should also expect improved vendor negotiations & inventory management. In terms of revenue growth, you can review better pricing strategies, menu engineering, and more accurate financial planning for expansion or revenue streams. Operational efficiency would be another area to analyze; with more streamlined bookkeeping and reporting, you will see improved cash flow, forecasting, and budgeting. Finally, time savings. Hiring a fractional CFO allows owners and managers to focus on operations and customer experiences instead of spreadsheets.
Q: How Can I Improve My Brewery’s Profitability? Stay proactive by tracking gross and net profit margins over two years and breaking them down by production, taproom, wholesale, and administrative operations for clear insights. Your taproom should aim for a net margin of 16-20% when beer is priced at PTR (Price to Retailer) and 22-29% for beer sold at cost. Finally, keeping a close watch on your Cost of Goods Sold (COGS) as a percentage of revenue in the Taprooms and Wholesale will help you address potential issues early and keep your profitability on track. Start by making your taproom a significant profit driver. Aim for around $1,800 in monthly revenue per seat. To build a loyal customer base, create unforgettable experiences through offerings like food, events, or entertainment that keep people coming back for more.
Q: Is investing in a fractional CFO worth it for a brewery with multiple taprooms? Yes, if: Your financials are messy, and you need structure. You struggle with consistent financial reporting cadence You're planning to scale or have already scaled to additional locations. Maybe not, if: Your business is stable and your accountant/bookkeeper handles finances well. You already have strong financial controls and understand your numbers well. Your focus is more on brand growth & customer experience than financial optimization. Alternative Approach: Start with a part-time or project-based CFO for financial cleanup, then reassess ongoing needs.