FAQs

Frequently Asked Questions

What are indicators that your business needs CFO expertise?
  • Revenues are growing, but profits flat.
  • Lack of sales growth and inability to determine cause.
  • Insufficient cash to fund operations and growth.
  • Inability to determine accurate costs for products and services.
  • Lack of clarity in resource allocation process.
  • Owners' time spent primarily on crisis or daily operations, not growth.
  • Unable to recruit sufficient talent mix required to improve business operations.
  • Critical business decisions are made without financial clarity.
Why do I need a CFO? My CPA answers my questions and does my taxes.

CPAs focus on historic information and tax work. CFOs focus on financial analytics, cash flow, operational improvements and strategy, which lead to improved business profitability. It is the job of outsource CFOs to provide immediate relief to the financial and operational issues that affect the bottom line.

When should I hire a CFO?
  • Confronted by business problems that cannot be solved with current resources.
  • Need improvements in cash flow, pricing model, operational efficiencies, and help scaling business and determining funding requirements.
  • Entering a new market, starting a new venture, accessing new technologies or products or trying to increase efficiencies.
  • Experiencing challenges with current banking relationship.
  • Too much time being spent by owner in the business and not enough time running and growing the business.
  • Need to see where the business is trending in order to develop its most profitable core competencies.
Why should I hire an outsource CFO, rather than a permanent CFO?

Outsource CFO services are on a contract basis, typically rendered on an hourly or project basis. In addition to substantial cost savings and efficiencies, hiring this high level of expertise on a full-time basis is not affordable by many small to medium-sized businesses.

What is the most important insight provided by a CFO?

Financial clarity and recommendations based on numbers and the CFO experience and expertise to provide your business with a road map to profitable growth.

CFOs make sure that books and records are accurate, analyze financial performance and cash flow, map growth strategy, driving cash to the optimal positions, and helping business owners reach goals in the shortest amount of time possible.

What is first step in determining how to grow profitability?

Financial clarity and understanding of where business is currently.

What financial information should business owner be looking at monthly?

Sales, gross profit, operating margins, labor utilization, accounts receivable turnover, inventory turnover, working capital and debt to equity ratios. Also industry-specific KPI (key performance indicators).

What are key items in cost structure that are needed to be measured?

Direct costs of purchasing products-labor and related labor costs-freight and duty indirect costs such as rent, utilities repairs and informational technology.

What should a business owner review with his financial advisor?

Financial results, cash flow, projected sales and gross profit, analysis of business expansion plans, customer acquisition costs, all business and financial issues and tax planning (business and personal).

When should a business owner be reviewing financial information?

Financial results should be reviewed monthly within three weeks of month-end. Key performance indicators should be reviewed monthly within seven days of month-end.