The Agency Growth Podcast When Does a Marketing Agency Need to Hire a Fractional CFO? (ft. Jody Grunden, CPA w/ Anders) | Episode 188
Jan 2, 2026
In this engaging discussion, Jody Grunden, a seasoned virtual CFO with over 20 years of experience, explains when marketing agencies should consider hiring a fractional CFO. He highlights the challenges agencies face when scaling between $1.5M and $5M, offering strategies to maintain profitability. Jody demystifies the difference between CFO and controller roles, shares tips on identifying revenue leaks, and discusses the importance of cash reserves. He also highlights the benefits of R&D tax credits for agencies engaged in development.
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Where Virtual CFOs Fit Best
- Jody typically works with agencies from $1.5–2M up to $5–10M, with most between $5–10M.
- Agencies over ~$10M should usually have an in-house CFO rather than rely only on virtual services.
Hold 10% Revenue As Cash Reserve
- Keep a cash reserve around 10% of annual revenue to manage cash cycles and unexpected needs.
- Use that reserve to avoid short-term liquidity crises while you scale operations.
Big Clients Aren't Always Best
- High-revenue clients can produce low margins; top-line size doesn't guarantee profitability.
- Agencies must track client-level margins to find which clients truly drive company profit.