Let's start with clarifying what a CFO does:
A CFO oversees financial activities and operations to ensure short-term and long-term needs are met, including monitoring a company's ongoing financial operations, working with the production team or project managers to increase profitability, supporting sales and marketing to help them achieve their goals, helping raise capital, managing internal cash flow, and supporting short and long term strategic planning. In short, an executive role that works across all facets of a business to help improve operations, increase revenue and increase cash flow.
How CFO OnSite supports your business:
As your CFO OnSite, we support you in a number of key areas:
We are a member of the management team.
If they aren't already taking place, we set up regular meetings of the management team where together we set goals and priorities for the business. The accounting processes we instill in the organization ensure we are able to regularly report back to this team how the company is performing against the goals we set and adjust course, as needed. We partner with the various department heads to review and identify opportunities to increase their profitability, maximize sales and growth opportunities with new customers or new markets, ensure departments are operating efficiently (which saves money). We advise and consult and are a partner and resource for your team.
We establish performance measures and consistent financial reporting
Making decisions without accurate and timely financial data is like walking a tightrope blindfolded - a feat only a very few (and very lucky) CEOs can accomplish successfully. We ensure the accounting function is utilizing consistent accounting procedures to report the company's financial situation accurately each month (or week, as needed). Having the foundation of solid financial numbers enables us to set KPI's (key performance indicators) to assess the ongoing financial condition of the business. This information is provided to the management team regularly, so all department heads are informed and able to run their departments efficiently to meet their goals.
We maximize cash flow
Cash flow is one of the most critical measures to track consistently. Financing operations through internal cash flow is significantly more efficient and more profitable than securing outside financing to do so. It is a sign of a healthy business. Even if your business is healthy, you may need to plan for seasonal dips and peaks in your business, or you may want to re-invest your profits back into the business to grow it through new products or marketing. Or you may be going through a lean time and need to preserve cash to weather the storm. We track, anticipate, and maximize cash flows by assessing all facets of your business to ensure your goals are met.
We budget and forecast
We've mentioned goals several times now. Every business needs goals. But how will it achieve them? The annual budgeting and forecasting process develops the roadmap to do so. Because without a roadmap, you won't know when and how much to course correct because you won't know if you're on course to meet those goals or not. Our budgeting and forecasting process involves every department head - it is a collaborative annual process to establish the means to accomplish the company's goals. Actual to budget variance analysis on an ongoing basis helps determine if any course corrections are needed.
We build banking and vendor relationships
Having strong relationships with your bankers and vendors makes a significant impact on cash flows. If times are tough, a banker or vendor will be more willing to give extensions and leeway when the relationship is established, respectful, and collaborative. Growing relationships to accomplish this level of support is one of our strengths.