Managing cash flow is one of the most critical challenges entrepreneurs face as they build and scale their businesses. In this comprehensive guide, we explore essential strategies to avoid common cash flow mistakes, inspired by the expertise of Dan DeGolier, founder and CEO of Ascent CFO Solutions. Dan brings over 30 years of financial leadership experience, helping entrepreneurs understand their finances, forecast cash flow, and secure the capital needed to grow. Whether you’re just starting your entrepreneurial journey or looking to accelerate your company’s growth, these insights will help you maintain financial health and make strategic business decisions.
Dan DeGolier’s Journey: From CPA to Fractional CFO Leader
Dan’s story begins with a traditional accounting background as a CPA at a global firm, but his passion for entrepreneurship and innovation led him to focus on high-growth technology companies early in his career. He gravitated toward roles where he could help disrupt the status quo and support companies changing the way business is done.
After working as a CFO in various technology firms, Dan encountered a recurring problem: many startups and growing companies needed CFO expertise but couldn’t afford a full-time financial executive. This realization sparked the idea of fractional CFO services — providing part-time, flexible CFO leadership to multiple companies simultaneously.
Though the term “fractional CFO” wasn’t widely used at the time, Dan pioneered this model, eventually founding Ascent CFO Solutions in 2016. Today, his firm employs 40 people and serves over 90 companies across diverse industries. Their mission centers on helping entrepreneurs grow by providing expert financial leadership on a flexible basis.
Understanding the Role of a Fractional CFO
Many companies, regardless of size or stage, require strong financial leadership to manage cash flow, plan for growth, and make informed decisions. Dan emphasizes that whether a business is venture-backed, angel-funded, or self-financed, visibility into cash flow and future financial scenarios is paramount.
Ascent CFO Solutions helps clients with:
- Cash flow forecasting: Developing detailed financial models that project revenue, expenses, and cash needs over three to five years.
- Fundraising support: Assisting with equity and debt financing to fuel growth.
- Exit planning: Preparing companies for eventual sale or transition.
At the heart of their service is creating robust financial models that incorporate:
- Sales pipeline and conversion rates
- Costs related to sales, marketing, engineering, supply chain, and operations
- General and administrative expenses such as headcount and facilities
Dan stresses the importance of a strong accounting foundation. Accurate historical financials are essential for reliable forecasting. To that end, Ascent CFO Solutions employs skilled controllers, accountants, and analysts who ensure clients’ books are accurate and compliant with accounting principles.
The Secret Sauce: People and Technology
Dan attributes much of Ascent CFO Solutions’ success to two core pillars: their people and their technology-first approach.
People
Hiring the right team is crucial in a professional services firm. Dan describes a rigorous recruitment and vetting process focused not only on financial expertise but also on communication skills and cultural fit. Since fractional CFOs and accountants serve multiple clients, they must be adept at managing different client expectations, deadlines, and communication styles.
The company prioritizes:
- Excellent communication and transparency
- Respect and alignment with company values
- Underpromising and overdelivering on commitments
Technology
Ascent CFO Solutions is a technology-first organization that leverages modern cloud-based tools to automate manual processes and save clients time and money. By connecting bank accounts directly to accounting software and integrating data from CRM and HR systems, they provide real-time dashboards and insights to clients.
Dan highlights their proprietary dashboarding solution, “Insights by CFO,” which empowers companies with up-to-date financial and operational data to make smarter decisions. This blend of human expertise and advanced technology creates a powerful service delivery model.
While AI and automation offer exciting possibilities, Dan notes that human oversight remains essential. AI can assist with tasks but cannot replace the nuanced judgment and verification required in finance and accounting.
Key Financial Priorities for Entrepreneurs
When working with clients, Dan consistently emphasizes the critical importance of cash flow management. Here are some of the key financial priorities he recommends entrepreneurs focus on:
1. Cash Flow Visibility and Scenario Planning
Understanding your cash flow risks and opportunities is fundamental. Entrepreneurs should develop financial models that allow them to run multiple scenarios — including best-case, worst-case, and most likely outcomes. This helps anticipate funding needs and operational adjustments.
2. Diversify Customer Base
Customer concentration is a significant risk. If one client accounts for a large percentage of revenue (e.g., 20-30%), losing that client could jeopardize business stability. Entrepreneurs should create contingency plans and actively seek to diversify their client portfolio.
3. Insurance and Risk Management
Proper insurance coverage is a safeguard against unexpected costs. Dan advises entrepreneurs to ensure they have adequate protection to mitigate financial risks.
4. Strategic Investment with Contingency Plans
Growth initiatives such as geographic expansion or new product lines require capital and carry risk. Entrepreneurs should model the financial impact of these investments and have backup plans if market acceptance falls short.
CEO Insights: Leading with Openness and Collaboration
Dan shares valuable advice for entrepreneurs and CEOs about leadership and mindset:
- Be open to change and alternative viewpoints: Avoid surrounding yourself with only like-minded people. Diverse perspectives lead to better decision-making and innovation.
- Lead by example: Demonstrate the behaviors and values you expect from your team.
- Build a complementary team: Recognize your strengths and weaknesses, and hire people who fill the gaps.
- Embrace mentorship and coaching: No one has all the answers. Being open to learning from others accelerates growth.
Dan notes that these leadership traits developed over time through mentorship, coaching, and a willingness to experiment with new ideas and technologies.
Recommended Resources: Books and Personal Hacks
For entrepreneurs looking to deepen their knowledge, Dan recommends several classic business books:
- Blue Ocean Strategy: Focuses on how to disrupt markets and create uncontested market space.
- Traction by Gino Wickman: Introduces the Entrepreneurial Operating System (EOS), a framework for managing and scaling businesses.
- Good to Great by Jim Collins: Explores what makes companies transition from good to great performance.
On a personal level, Dan credits having a long-term executive assistant (EA) as a key productivity hack. Delegating time management and prioritization to a trusted EA has allowed him to focus on strategic leadership and growth.
Final Thoughts: Running Your Own Race with Financial Clarity
Entrepreneurship is a marathon, not a sprint. Dan’s overarching message is that understanding and managing cash flow is the fuel that powers your business race. Without clear financial visibility and risk planning, even great ideas can falter.
He encourages entrepreneurs to find their unique strengths and to build collaborative teams around them. By embracing technology, maintaining accurate financial data, and planning for multiple scenarios, business owners can confidently navigate uncertainties and seize growth opportunities.
Connect with Dan DeGolier and Ascent CFO Solutions
If you’re interested in learning more or need expert financial leadership for your business, Dan and his team are accessible through:
- LinkedIn: Follow Ascent CFO Solutions for insightful content and updates.
- Website: Visit ascentcfo.com to explore their services and contact the team.
With a growing team of 40 professionals, including 14 CFOs, Ascent CFO Solutions is well-equipped to support companies at various stages, especially those on a growth trajectory seeking strategic financial guidance.
Conclusion
Cash flow mistakes can cripple even the most promising ventures. By learning from seasoned experts like Dan DeGolier, entrepreneurs can avoid common pitfalls and build a strong financial foundation for sustainable growth. Key takeaways include the importance of accurate accounting, scenario-based forecasting, risk diversification, and embracing both people and technology in your financial operations.
Above all, successful CEOs lead with openness, collaboration, and a commitment to continuous learning. They understand that managing cash flow isn’t just about numbers — it’s about running a smart, resilient business that can weather challenges and capitalize on opportunities.
Set yourself up for success by prioritizing your financial health today and running your own race with confidence.
