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The advantages of As-Needed CFO Services - May 22, 2012

Posted by: Matthew A. Scott in Articles

Whether you are selling cookies, or own a multi-million dollar corporation (or in this case up to $75 million), everyone needs a CFO. For the smaller companies, B2B CFO offers as-needed CFO services. On-Demand

Everyone needs some financial help, and what is better for a new business than to be able to hire this help without having to pay full price? These financial advisors work on an "as-need basis". The advisors work with multiple companies so that you do not need to pay them for full time. They are only there when you want them.

B2B CFO is perfect for start-up businesses that have somewhere from $1million-$30million in revenues. B2B CFO is an affordable way for these companies to really get themselves off the ground. Chron says,

CFO Publishing LLC and online B2B marketplace RapidBuyr announced today the launch of CFO Deals, a partnership offering mission-critical savings on essential business products and services to nearly one million finance executives in the CFO network. CFO is the premier publisher of high quality, relevant content and advice for finance executives across an array of industries, through CFO.com, CFO magazine, and their conference and research business.

B2B CFO is the best company to use when you are starting up a business. When everything is busy and hectic, you need to know that there is someone there to deal with all of the finances. When starting a new business, B2B CFO is the best and only way to go!

Staff Development Begins With the Hiring Process - May 15, 2012

Posted by: Matthew A. Scott in Articles

With only 24 hours each day we are all limited by what we can accomplish during our business hours. This is one of the main reasons why you should learn how to hire employees effectively. When you hire qualified individuals from the beginning the staff development process becomes easier. These employees are more likely to enjoy learning new skills and Now Hiring knowledge for career advancement.

Other reasons businesses benefit from hiring includes the ability for your business to operate without you being physically present, adding an essential skill that you can’t provide, or hiring help so you can focus on more important tasks. No matter why you choose to hire an employee it will help increase your capacity if done correctly.

Before you begin the process of hiring your first employee, you will need to evaluate your needs. Here are some helpful questions to ask yourself:

How many employees will you need?
Will you need part-time or full-time help?
Is hiring an intern an option?

Now that you have a better understanding of your business’ needs you can plan their responsibilities. What will this job entail? This needs to give potential employees a clear idea of their future responsibilities and tasks. Also look ahead a few months or years. Will the job change over time?

In the job description you will need to explain any requirements, such as specific skills or credentials, needed to perform the job. If you foresee changes in the near future of the job’s responsibilities you’ll want to have a staff development plan ready. What training and development will your employee need to remain qualified?

A well-written description for hiring an employee typically includes the following:

Position title
Department name
Person (or position) to whom the new hire will report
A list or paragraph describing the job responsibilities and duties
The term of employment (full-time, part-time, contract, intern, etc.)
Any necessary skills or experience required

While writing a job description can be overwhelming, especially if this is your first time hiring an employee, a well-written job description can make the hiring process more efficient. You will weed out those without the necessary experience or skills without wasting your time in a live interview. You’ll also want to include a general statement, or catch-phrase, about the responsibilities and “duties as assigned.” This will....

Working on your Business??? - May 10, 2012

Posted by: Timothy J. Sheeran in Articles

Do you often find your view of your employee's is not "up to your satisfaction? The answer may be you and not your employee. George Hedley, a licensed business coach, stated recently that 3 main areas warrant your attention.
Develop Problem Solvers: Not a good sign to have a line of employees outside your office, give them the the latitude to make decisions, make them accountable with responsibilty to perform.
Achieve High Performance: As a leader, you need to delegate, encourage and coach. Let go, employees want to follow leaders who trust them and give them responsibilty. This will not happen overnight, give it time, patience and trust.
Delegate Successfully: Don't try to answer and handle all incoming customer calls and issues. Listen and then turn over the issue to a manager or supervisor. They make mistakes, but when you ask them to be accountable, they will usually make careful decisions.
Good luck with the process!

Only 4 ways to improve profit - May 1, 2012

Posted by: Randal Suttles in Articles

As I was reviewing the monthly financial results with one of my clients, we spent a great deal of time analyzing the gross margin. She asked me to do a training session with her and her key managers so they could better understand how to improve it. What follows is a brief, and hopefully simple, summary of our discussions.

You can improve profit only 4 ways (there are really 5, but I will get to that at the end).

You can raise the prices of the items you sell. Number 1. And this has a 100% improvement to profit. For every extra dollar you charge, you make another dollar. Simple.

I once missed a financial exam question that asked which has the quicker and greater impact on profit: higher prices or more volume? I picked volume. My logic was you cannot raise prices without volume, because a price increase on no volume is still zero. I got the answer wrong, but you know, I was partly right. You can increase volumes to raise profits, even without a price increase. That is Number 2. But, therein lies the tension that owners and managers face: how much volume do I lose if I raise prices? But the math is the math. Raise the volume at the same price levels, and you will make more profits.

Number 3 is to reduce the cost to make or manufacture. That means reduce manufacturing labor costs, material costs, and overhead costs. These are all topics for other discussion. But again, the math says if you can reduce the costs of what you make, you make more profit.

Number 4 is also cost control: reduce general and administrative costs. Administrative salaries, rent, office costs, computers, benefits, and so on.

Those are the only 4: Increase sales prices (number 1). Increase sales volumes (number 2). Reduce costs to make (number 3). Reduce administrative costs (number 4).

About the 5^th way? That is balance sheet management. Control the accounts receivable levels, reduce inventory balances, manage accounts payable, tighten capital expenditures, limit debt levels and lower interest costs, etc. All of these are asset and liability management that impact profits. But for strictly managing operations, there are only 4 things to work on. Simple to describe. Hard to do.

What�s More Important, Where You�re Going or Where You�ve Been? - Apr 30, 2012

Posted by: Steven D. Olson in Articles

It has been my experience that business owners seem a little confused between a CFO and a CPA. When they ask what I do and I tell them I am in a partnership that provides part-time CFO services for business owners, they often respond that they already have a CPA.

So what’s the difference between a CPA and a CFO? Perhaps the best explanation I have heard is that CPAs (and bookkeepers) look through the rear view mirror. They look where the organization has been. What were the sales? What were the expenses? What did the business sell? What did the business buy? They prepare taxes, perform audits, maybe perform bookkeeping services or prepare payroll. Their focus is on the past.

CFOs on the other hand look through the windshield. They come along side the business owner to translate the vision, goals and objectives into a financial game plan and then work with the owner to accomplish the plan. Like the owners, the CFO is focused on the where the business is going. They deal with the financial implications of anticipated events such as the future purchase of equipment, inventory fluctuations, and projected cash flow requirements. They focus on the future.

Every business owner should have a CPA on his or her team of advisors. If they don’t have one, I will help them find one. But, CPAs usually have limited contact with the business owner, – generally only at tax time. Rarely does the CPA conduct a monthly or even quarterly review of the financial position of the company and provide recommendations for improving operations. Due to the nature of the work of the CPA, they are required to be independent, which precludes them from making such recommendations. The CPA is an outsider.

The CFO works closely with the business owner and should be a member of the management and financial team. B2B CFO partners strive to become a trusted advisor and actively participate in discussions that have financial implications. For example, the CFO works closely with the accounting staff to monitor cash flow and working capital planning. He or she will identify and teach the staff on how to monitor key performance metrics. The CFO designs systems and processes to ensure the integrity of financial information and they design the system of internal controls to ensure physical and financial security. The CFO is an insider.

Monitoring....

Part-time CFO services could be your answer - Apr 30, 2012

Posted by: Matthew A. Scott in Articles

One question that owners of growing businesses will eventually face is a big one: when do I need a chief financial officer? There is no one right answer to that question. There are many variables that have to be considered and the right answer will be different for just about every company.

Complexity, volume of business activity, and company objectives are three of the biggest factors to be weighed when determining whether your company needs the services of a CFO. The more complex your business becomes the more a CFO’s services will be vital to your ongoing success. The volume of business your company is doing is also critical. When a company reaches $1 to $3 million in sales, it is probably time to consider getting a CFO.

If your company is growing and you are making plans for major expansions, acquisitions or recruiting significant investment, you probably want to consider employing a CFO. If you have reached the point where you need think you need to secure the services of a CFO, you can consider hiring for part-time CFO services.

If you choose the route, you need to approach the process with care with study. You should not be looking just for a service provider, but for a partner. Your business relationship with a CFO has to be one you are fully comfortable with because it is essential to your continued success.

A part-time CFO can provide your business with services that you determine are necessary at any specific time and work with your in-house staff to make sure your financial affairs are always on target. If you have found the right partner with your CFO, you can have the peace of mind and confidence to focus your attention on your top priority, continuing to build your business.

If you think you are at the point that you need a CFO, contact us. There is much to consider as you ponder this decision and we can help you find answers to any questions you might have.

A Part-time CFO in Boulder, A Tool for Success - Apr 24, 2012

Posted by: Matthew A. Scott in Articles

Boulder, Colorado is where entrepreneurs gather in the west. The city is home to many start-ups, and every one of them has a brilliant person, or group of people, behind it. These talented individuals range from journalists to computer engineers. Many have unique backgrounds and perspectives that sparked the idea for their entrepreneurial business but not all have that important knowledge in business.

It doesn’t matter how good the idea for the company is, if those in charge neglect the business aspect it is very likely to fail. Luckily these individuals don’t have to stop running their company and go get a business major; instead they can call on a part-time CFO in Boulder.

A part-time CFO can be at help as early as the planning stages of a company. These business savvy people can develop structure for annual planning and help monitor when the company begins to stray from that plan. This provides both accountability and organization to the new business.

Many times entrepreneurs are excited about the product or service they are providing and become blind to possible financial pitfalls. A CFO offers both sensibility and control to the company and entrepreneur. By avoiding things like overestimating on the budget, or for that matter make a concise well put together budget, a CFO can give entrepreneurs more tools for success.

Part-time CFOs are tools to help Boulder businesses be successful. They can do the things previously mentioned plus a whole lot more. Contact us if you would like to utilize this tool for success with your business or learn more about what our CFO services can provide.

The Benefits of outsourcing Part-time CFO services - Apr 17, 2012

Posted by: Matthew A. Scott in Articles

Do you feel like you could use the services of a CFO? Do you lack the resources to add one to the payroll full time? If this sounds like you, no need to worry. Part-time CFO services are just a click away.

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What are the benefits to outsourcing CFO services?

Better controls. Often, small companies lack a separation of duties. One person is performing all of the financial tasks. This is a situation that can lead to fraud and theft. Hiring a part-time CFO to perform these services gives you peace of mind and greatly reduces the risk of losses due to theft and fraud.
Better trained staff. A Part-time CFO has the knowledge and skills to train your staff on Accounting procedures and best practices. Your staff will become more efficient, saving both time and money.
Increased cash flow. Is your cash flow not where you want it to be? A part-time CFO can help with cash improvement programs designed for your company.
Help with taxes. Taxes are often a difficult subject for business owners. The IRS rules are always changing. Fines and penalties can be in the thousands of dollars. Save your company the headache by allowing a part-time CFO to handle taxes for you.
More accurate financial statements. The financial statements of many companies contain errors. A part-time CFO can prepare your financials for you. You can breathe a sigh of relief knowing that your financial statements are accurately prepared by a trained, knowledgeable professional.

Hiring a part-time CFO to handle your companies accounting needs pays for itself in the long run. You get the confidence and peace of mind that come from knowing your finances are under control. This allows you more time to focus on improving the revenues, products, and services you provide to your customers.

Middle Market Waste, Inefficiency & Excess Cost - Apr 15, 2012

Posted by: Brian E. Christian in Articles

In today’s economy, reducing administrative overhead costs to their bare minimum can literally mean the difference between success and failure for middle market companies. In an environment when top line revenue is, at best unpredictable, it makes perfect sense to lower the break-even revenue point of the company as much as possible.

One of the easiest ways to accomplish this is to outsource payroll AND eliminate any redundant input of job cost information. It is one of my standard recommendations and I constantly hear variations on the following themes as objections to this recommendation:

Payroll is just the by-product of job costing.
Outsourcing my payroll wouldn’t significantly reduce my administrative burden- it doesn’t take a significant amount of time, once the job costing is done.
Job costing and tying each employee’s time on various jobs out to their time card for the period takes the most time and raises the most questions.
I can’t outsource the job costing.

My response to these objections usually follows alone the following lines:

Internal payroll processing is mundane, routine and does NOT add value to an organization- why would you expend valuable administrative resources on something that does NOT add value.
Payroll companies do nothing but payroll and as a result they do it FASTER and more EFFICIENTLY and for LESS cost than anyone can do it in-house.
With a minimal one-time investment in an appropriate time and attendance module (including mobile smart phone applications), the need for clerical reconciliation of job costing to employee time cards becomes a distant memory.

Depending on the manual nature of the legacy job costing/payroll process, championing process improvement like this can allow a middle market firm to reduce its administrative staffing by an entire full-time equivalent employee.

If your company struggles with profitability or is challenged with cash flow, continuing to carry excess costs and overhead burden can mean the difference between solvency and insolvency.

Strategic Business Plans Build Strength - Apr 10, 2012

Posted by: Matthew A. Scott in Articles

If your business has weathered the economic storms of the past several years, you can pat yourself on the back, but it might not yet be time to breath that sigh of relief. No one knows for certain from where or when the next economic challenge will come. If you are still in business, you have done well. If you want to stay in business and grow, it is time to plan.

Strategic business plans can help you do that. Businesses owners who are not planning are putting themselves at greater risk to constant shifts that occur in the business world. A solid strategic plan can keep you on the path to success.

Many business owners may have a plan, for some it is probably the original business plan they did when they were getting started. They may think this is good enough. After all, they made it this far didn’t they? Fair point.

Now how about a few questions.

How much real growth have you seen in your business?
How many new products or services have you added?
Can you look back now and see opportunities that you missed?
Everyone’s answer to those questions will be different. How about yours?
Have you seen the kind of growth you hoped and needed to see?
What about those new ventures?
Is there something you wish you had done or some business opportunity you missed?

If you wavered even a little on answer any of these questions, it is time to do a real assessment of your business and develop a strategic plan for the future.

A good strategic plan will give you direction. It will give you some goals and objectives. It will give you the flexibility to evaluate and act when you find new opportunity.

No business can achieve its full potential without good planning and good plans do not sit on shelves gathering dust.

If you want to solidify the future of your business and chart a course toward future success, now is the time to put a serious effort into planning. If you want to know more about how strategic planning can help your business, contact us.

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