How Third Road Management Pioneered Fractional CFO Roles
An interview with John Frank, CEO of Third Road Management
Q: Can you tell us about Third Road Management? What services do you offer, and who are your typical clients?
Third Road Management is a pioneer in the booming fractional services industry with a nationwide presence. The company was established in 2015 with a singular mission: to revolutionize how small to mid-sized organizations view and manage their financial operations.
Across the nation, over one million organizations generating revenues under $100 million lack the essential strategic, financial, and operational expertise needed to establish a sustainable and scalable foundation.
Third Road Management addresses this challenge by offering a reimagined CFO suite, featuring some of the most skilled Fractional CFOs, Fractional Controllers, and Fractional Bookkeepers available in the market.
Our typical clients are family-owned and operated businesses with revenue between $5mm and $50mm across the U.S. We are agnostic in terms of industry and have a team with diverse skill sets that understand almost all businesses.
Q: Your website mentions that the fractional services industry is booming. What do you think is driving this trend? Since you started Third Road Management in 2015, how has the industry changed, and what do you see for its future?
When I started Third Road Management in 2015, I had already been doing this type of work on the side for two years. I wanted to find a word that captured the essence of what I had been doing, which was acting as a true partner to the businesses I was working with and being their trusted advisor (all of which are still our clients, by the way!).
The words “outsourced” and “part-time” felt too transactional and impersonal, so I came up with the words “Fractional CFO” to better capture the essence. We use the word “pioneer” to describe Third Road Management’s place in the market. I’m not definitively saying that we invented the term, but I can honestly say that I had never heard it before.
In the first several years, it was hard to educate people on our unique fractional business model and that we are expressly not a) a placement firm, b) a temp agency, or c) an interim firm. This was a new idea that took a long time to gain momentum.
That being said, in the last couple of years, it has caught on quite a bit in terms of awareness, although I still believe that the adoption rate is probably at less than 1% of what I think it should and could be. Simply put, the fractional industry is booming because it is a better solution and levels the playing field for small to mid-sized organizations.
Q: Third Road Management currently has open positions for Fractional Accountant, Fractional CFO, Fractional Controller, and Fractional Senior Accountant. What type of candidates are a good fit for these fractional roles compared to traditional full-time accounting positions? Do you believe there is a shortage of accounting candidates?
The shortage of accountants in the U.S. is very well documented, which is why my wife and I encourage our rising senior to choose an accounting major in college!
At Third Road Management, there are a few essential qualities for a good fit on our team. Firstly, you must have experience with and a passion for working with small to mid-sized businesses (and be willing to roll up your sleeves).
Secondly, you have to embrace and be excited about working with different companies in different industries simultaneously.
Lastly, you have to pass the parking lot test – when you pull into the parking lot, we’re excited to see you! Culture and emotional intelligence (EQ) are huge for us at Third Road.
Q: How has AI impacted the accounting profession? Have you noticed significant changes? How do you think AI will shape the accounting field in the future?
AI is coming for every industry. Deloitte recently released a press release earlier this month stating that they were investing $2 billion in their AI transformation group as a data point. There is no doubt that it will have an impact.
You’ll probably see AI adopted more in larger businesses, and smaller businesses will follow over time. In the future, AI will be a tool to simplify many processes, but accountants and humans will still be needed to discern the results and make insights.
Q: With fewer students pursuing accounting degrees, do you think accounting is still a strong career option for young people? What advice would you give to someone considering a major in accounting versus other business degrees?
Do it! As I mentioned, I am even encouraging my own daughter to do so. If you have an accounting degree, you can always work in finance, marketing, etc., but the same isn’t true the other way around.
If I were to offer some additional encouragement, I’d suggest adding a second major or minor in data science. I believe that is a strong combination of education for what lies ahead!
The Latest Articles
