WHO USES CFO ONSITE?
CFO Onsite was launched to bring big business expertise to help small and medium businesses thrive. Our clients, whose revenues typically range from $5 million to $50 million, come from a variety of industries and share the following characteristics: a desire to profitably maintain or grow their business, make their operations run more efficiently, and focus on the big picture.
About 80% of our clients are up to $15MM in annual revenues, with the remaining 20% between $15-$75MM.
About 67% employ between 6 and 50 full time permanent staff, with another 33% employing greater than 50 employees.
In about one third of our engagements, we provide the full accounting support. In the remainder, our accountants have complemented existing accounting departments with total in house accounting department headcount between 2 and 8.
Our services are scalable and flexible and we adjust our support to meet the varying needs of our clients.
CASE STUDY - IMPROVING FINANCIAL PROCEDURES
A globally recognized software development company in Carlsbad, California needed accounting help. They asked CFO OnSite to assist with receivables, their month end close process and putting together a reliable and timely set of financials each month. They also needed help repairing the relationship they had with their bank. They were out of covenant on a large loan and the bank threatened to call the amount outstanding. CFO OnSite reviewed their current financials and, working with the on staff accountant, implemented a credit review process for new clients and a process to collect older receivables; and compiled a forward looking cash flow statement and annual budget and forecast. CFO OnSite personally represented the company with their bank, presenting accurate and complete financials, the cash flow projections and the budget in order to assure the bank that the software company would work with them to pay down the loan and bring it into covenant. A successful negotiation resulted in the bank ceasing collections on the loan and allowing CFO OnSite's client to pay it down.
Now that they had updated and complete financial information they felt they could rely on, the owners were able to concentrate on building their business and expanding their product offering. The great work they did garnered the attention of a large publicly held German software company. CFO OnSite helped the software developer through the merger by managing the due diligence process and meeting with the buyer's representatives to discuss financial operations. Once the acquisition was complete, CFO OnSite worked with the new German owner to implement expanded reporting and budgeting procedures as well as manage annual internal audits.
The owner of a high-end skin care product manufacturer and retailer in Orange County, California did not like to review the financial condition of her business. She started her business in her garage and eventually built a $12 million dollar company which sold products through resorts, spas and doctors' offices. CFO OnSite was engaged to mentor the accounting manager, supervise financial reporting and work with external CPA's on tax matters and somehow inform the owner on the financial position of her company. Company management was not happy with the ERP system in place and asked CFO OnSite to perform the financial portion of the conversion from AS400 to NetSuite.
CFO OnSite worked with the accounting manager to bring a month end close calendar to the close process which helped update the financial statements so more current and relevant information could be conveyed to the owner. CFO OnSite identified redundant and unnecessary expenses which were eliminated, helping to provide operating capital. Several of the processes which had been done onsite were moved to offsite vendors based on CFO OnSite's recommendations, resulting in greater savings and much greater operational flexibility. CFO OnSite worked with the sales department to expand the sales teams and implement Key Performance Indicators so sales and operating performance could more easily be judged.
Like business owners, CFO's should be forward thinking. In order to gain a better understanding of how to best help the company as a whole, CFO On Site worked closely with the management team each week to gain a broader understanding of all aspects of the company's finances. From packaging to warehouse management to shipping, CFO-OnSite worked side by side with department managers to reduce costs, cut waste and operate at a higher, more efficient level. The business owner is very happy with the results and is able to make decisions based on financial analysis rather than depending on instinct alone.
Case Study - Improving Profitability
cASE STUDY - developing the business
An online reseller also installed the technical equipment they sold from their Orange County, California operation. Although they had been in business for several years, the owners were not receiving monthly financial statements. CFO OnSite was engaged to help guide implementation of a new accounting software as well as to help tighten up their financial processes. The company had not performed any sales analysis on the products they sold. CFO OnSite determined cost and sales values on all inventory items, determined which of the largest selling products had the best margin and helped the company focus on selling the higher profit, best selling products across their expanding customer base, which subsequently helped to reduce the SKU's offered. A job costing system was also put in place at CFO OnSite's recommendations to better track the installation side of their business. This action helped identify cost over-runs as well as improve the bidding process. These efficiencies combined with integrating the online sales with the accounting software allowed for more timely reporting.
During the financial review, CFO OnSite noticed added costs and inefficiencies associated with installing the equipment in customers' warehouses. Company technical staff were asked to put together installation kits which helped focus the inventory process around providing the items needed for each installation and reduced the dead or slow moving inventory. The added benefit was cost savings through greater efficiency as items which were previously forgotten were now in place on the job site, reducing the time to install and incremental shipping which had been previously required to get needed products to the work area.