Is It Time for My Business to Hire a Virtual CFO?

Knowing when to say when, is essential in all areas of life; but perhaps no more than for the President of a rapidly growing entrepreneurial firm. Having done the hard part, you have worked around the clock for years on end. You have finely tuned your business model, retained the right management team, and perfected your business product, clearly distinguishing yourself in the marketplace. Your company’s sales volume is doubling every year and growing exponentially beyond even your wildest dreams. Your vision has come true, so why are the wheels falling off? Why are profits falling, work-flow, and product quality suffering? Where did our profits and cash flow go?

A part-time Chief Financial Officer/Controller is able to bring an experienced and independent financial perspective to help your business stop the bleeding, establish internal controls, plan for the future, and restore profitability. Retaining a CFO with decades of experience in public and private accounting is your best first step to take your business to the next level. Finding a CFO who is savvy, determined, and dependable is critical to a successful search. Contracting a CFO part-time as your business’s CFO will enable you to contract the highest level of service available while only paying a fraction or just what you use. Rather than having to come up with a Vice-President level salary, a part-time CFO will enable you to procure competent strategic financial advice restoring the growth and profit levels your business previously enjoyed. Areas of expertise we offer include:

  • Financial and Management Reporting. It is essential that financial reports should be concise, easy to read, and free from unnecessary clutter. Key operating statistics, trends, and financial narratives are key supplemental data to reviewing and understanding the results of financial operations from which to make decisions and positive changes in the business operational structure, operations, and net worth.
  • Internal Control. Development of a strong system of checks and balances and adequate segregation of duties are key components of the tracking and protection of company assets. Similarly as a lock protects the contents locked inside, so does internal control protect the physical safety of your business cash balances, inventory, financial data, and intellectual data.
  • Cash Flow, Financing, and Forecasting. Cash is the life blood of your business. Growth without cash and responsible financing options will soon result in your business dying a slow and painful financial death. Though many look solely to the cash balance when making purchasing decisions, this lack of insight will often result in disaster. Careful attention should be paid to trends, days in receivables, accounts receivable turnover, days in receivables, and accounts payable analysis are essential evaluation criteria when making important monetary decisions.
  • Business & Segment Analysis. Understanding key financial internal ratios, calculation of full-time equivalents and staffing by division, are an integral part of understanding what makes your business tick. Determining gross profit by job, both in dollars and as a percent, is an integral part of understanding what makes your business tick. This allows owners to ascertain key operational data and analysis of the business down to the lowest controllable denominator.
  • Management Advisory & Consulting. Frequently entrepreneurs who develop and create their business from day one, have an inability to adequately see the forest separate from the trees. For many business owners, this is their first foray into leading the organization from out in front as its founding member and President, leaving them intricately enmeshed in a business’s operations. An outside CFO, by their training and independence, brings to the business a fresh, informed, and direct approach to solving business and financial issues.
  • Business Plans & Budgeting. Just as a good barometer and a sextant are critical tools for a ship captain at sea, similarly are a business plan, budget, and financial modeling essential components of a well run business. Serving as a financial GPS, a good business plan and its attendant forecasts will help keep you on track and crystallize your firms direction.
  • Mergers & Acquisitions, Due Diligence, & Contract Negotiation. Whether you are buying a business or selling one, having the right professional representation in place will do much to ensure a well-informed insightful analysis. By retaining someone who knows what to look for, a owner will be better poised to make a wise purchase, sell, or contract decision. A financial and operational analysis of contracts, compensation plans, and shareholder agreements is an essential step to ensue your business profitability and economic survivability.
  • Insurance Review & Risk Management. Each and every business decision reached will have an impact on your company’s growth and profits. Understanding what is at stake and evaluating key operating variables enables a business owner to turn the science of financial analysis into an art form, by turning data into information. Selection of the right insurance coverage, deductible, co-insurance, and co-pay are critical parts of this process to ensure you procure those that are best suited to your organization. Understanding risk, careful contemplation, and analysis of insurance and risk management issues will help ensure your business long-term survivability.
  • Tax Planning & Compliance. Tax laws unfortunately continue to change adding layer of complexity on top of another requiring a clear understanding of the rules. The fair and judicious application of tax law will ensure your business and its operations are not unduly derailed, due to failure to adequately contemplate taxing regulations. Riding herd on these issues is an essential component to ensuring your business’s financial efficiency and profitability.

As you have done much and created much, your expertise has developed into a finely honed skill for which your business will invaluably benefit. However most entrepreneurs are not talented nor gifted in matters involving financial and operational efficiency. Finding a CFO whose track record includes experience in the management of rapidly growing business is your best defense to ensure successful, maximum operating efficiency.

Leave a Reply