Many small to mid-size businesses simply can’t afford the expense of a full time CFO. However a majority of these companies would benefit substantially from having a dedicated senior level professional to help drive and grow their business. CFO Solutions of Chicago, Inc will provide you that expertise and guidence at an affordable cost.
The Role of a CFO
The role of a Chief Financial Officer (CFO) will vary from business to business. Determining factors include annual sales and the complexity of operations. Typically the CFO position will change over time, the key being that back end operations continually support the achievement of stated company objective(s). In a small business, or one in the initial years of growth, budgets are tight and cash flow may be limited. The CFO may be called upon to be more hands on in the area of functional responsibility. As sales grow, the complexity of cash flow management increases as does the need for accurate and timely reporting and budgeting. No matter what stage of growth a company is in, the CFO always works directly with the Chief Executive Officer or Executive Director as a critical partner in evaluating, designing, implementing and maintaining sustainable systems that will differentiate a business from its competition and keep them one step ahead.
When a Fractional CFO Makes Sense
In business, timing and proactive thinking is everything. Knowing that many companies often have needs that a bookkeeper, or outside accountant cannot address on a timely and consistent basis, a CEO often turns to a Part Time CFO to act as his strategic planning partner, accountability partner or simply to provide management skills and leadership in areas that are currently lacking. This usually takes place after a company has reached a critical stage where they need more professionalism but still cannot justify the expense of a full time CFO or Controller. The CEO wants to maintain the positive growth of an initial launch with minimal risk of going backwards. In addition to sales, net profits are affected by cash flow, employee retention, inventory control, and asset management. A seasoned CFO will also help create a culture of professionalism that will support Customer Service and Sales teams.
While there are no written rules defining what services a Fractional CFO may be asked to perform, typical examples include:
- Monitoring and evaluating existing bookkeeping and HR functions
- Cash Management – examining your company’s current cash flow including: Aged Receivables, company credit terms and how to deal with uncollectible accounts. As well as Aged Payables, extension of payment terms and available discounts.
- Sales forecasting and expense budgeting for the company as a whole and various profit centers.
- Establishment and maintenance of professional and productive legal, audit, and banking relationships.
- Preparation and presentation of timely and accurate reports to boards, investors and governmental agencies.
- Negotiation of:
Equipment, furniture, automobile and office space leases
IT and PBX networking, service contracts, hardware purchases and software compatibility
Trucking and warehousing costs - Asset Maintenance including Security and Alarm Systems, Shredding, Recycling and Waste Removal Service
- Evaluating personnel, including job descriptions, hiring, training, terminations, handbooks and evaluations.
- Office Expansion Coordination between all vendors keeping project on time
Has your business grown to the point where a fractional CFO would benefit further growth?
Cash Flow Enhancement
Nobody wants their cash tied up in receivables and everybody wants to take advantage of special payment terms. Have systems in place to maximize vendor discounts and minimize overdue receivables. More cash in your pocket allows for more opportunity for growth.
Optimization of Financial Data
Whether it be a database or accounting system, you deserve reports that help you make better decisions. It all begins with policies and procedures. We take the time to make sure you receive intelligent information so you know how to best use resources.
Identify and Manage Risk
Risk can be mitigated through an effective system of checks and balances, due diligence, and quality relationships. We help create a culture of high integrity and confidence that important decisions are based on reasonable expectations.
Business Development Initiatives
You want your sales team to be more motivated? You want them to have SMART goals and information at their fingertips. A CFO will provide them with up to date figures and play a large role in helping them evaluate profit centers.
Focus on Sales Growth
A CFO will allow you to focus on your expertise. The days of putting out fires will be over. Whether it is a problem account, an impatient vendor or an insubordinate employee, imagine how good it will feel to say “ask my CFO”.
Stable Management
Employee retention and high turnover can become time consuming and expensive. Your team is the foundation of your organization. We advise how to hire, train, compensate, inspire and most of all retain top performers.
CFO Solutions of Chicago provides “on demand” expertise in finance, accounting, HR, strategic planning, relationshp building and other diverse management specialties.
Our unique service provides you with direct access to financial and operational expertise formerly available only to large organizations – but at a fraction of the cost of a full time executive.
Client success is our number one goal and our service and support goes beyond the finance and accounting department. Our CFO will carefully evaluate and thoughtfully address all areas that affect the financial and operational success of your company. From Business Plans to HR management, Strategic Planning to IT Support, CFO Solutions of Chicago can add substantial long term value to your bottom line.
