How to Build & Maintain Strong Investor Relationships

How to Build & Maintain Strong Investor RelationshipsThis week’s article is by Mark S. Becker, Partner, CFO Edge, LLC.

Given the significant roles played by investors in small and mid-sized businesses, it is critical to know how to build and maintain strong investor relationships.

Reviewed in this week’s PDF…

How to Build & Maintain Strong Investor Relationships

…are proactive steps executives with investor communities can take to prevent four addressable challenges from devolving into four negative outcomes.

These negative outcomes can include multiple investor-generated requests that can distract the management team or even investors withholding funding.

Executives in Greater Los Angeles and Southern California looking at ways to improve their investor relationships can benefit from talking with a provider of outsourced CFO services.

Working in an on-demand capacity, an experienced enterprise CFO applies expertise in capital raising and its accompanying requirement to build and maintain strong investor relationships.

A professional CFO can act as a liaison with investors to make sure they receive needed, accurate and timely financial information.

A CFO partner can also provide financial guidance to the management team and leverage his or her professional network in ways that can lead to additional funding.

Posted in CFO Services, Equity Financing, Financing Presentations, Initial Public Offering (IPO), Investor Presentations, Investor Relationships, Los Angeles | Tagged , , , , , , , , , , , | Leave a comment

Is a Joint Venture Right for Your Company?

Is a Joint Venture Right for Your Company?This week’s article is by John W. Braine, Partner, CFO Edge, LLC.

With economic optimism on the upswing, many executives are revisiting and launching growth initiatives like mergers, acquisitions and IPOs.

Another growth initiative worthy of consideration is a joint venture whereby two entities combine forces and work together toward shared business objectives.

Joint venture partners pool their strengths – such as expertise, resources, market access or R&D – and focus on a specific goal – such as market expansion, product development or a distribution channel.

Reviewed in this week’s full PDF…

Is a Joint Venture Right for Your Company?

…is how successful joint ventures must have the right partners and proactively address six potential drawbacks to realize six benefits.

Executives leading firms in Greater Los Angeles and Southern California can benefit from talking with a provider of on-demand CFO services.

A CFO partner brings a proven track record of determining the right joint venture partners, structuring agreements, developing joint venture plans, and implementing processes to monitor and manage performance compared to goals.

Posted in CFO Services, Financial Strategy, Growth Strategies, Joint Ventures, Los Angeles | Tagged , , , , , , , , , , , | Leave a comment

When & How to Deduct Business Bad Debts

When & How to Deduct Business Bad DebtsThis week’s article is by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.

When diligence in performing credit checks and attempting to collect receivables do not achieve results, it is important to know when and how to deduct business bad debts.

Discussed in this week’s full PDF…

When & How to Deduct Business Bad Debts

…is how successfully reducing federal income taxes by deducting bad debts is grounded in several factors: IRS-defined types of bad debt, your accounting basis, and using one of two accounting treatments.

Used for tax purposes, direct write-offs of bad debts treat a previous-period non-collection as a deduction in a current period. Used for reporting and complying with generally accepted accounting principles (GAAP), allowance write-offs treat a non-collection as a deduction during the same period in which the debt was incurred.

Greater Los Angeles and Southern California executives wanting to know if and how they can deduct bad debts can benefit from talking with a provider of outsourced CFO services.

An on-demand CFO brings deep expertise in determining what non-collections are bad debts, using the correct accounting basis, and applying the right accounting treatment to maximize bad debt deductions.

Posted in Accounts Receivable, AR & AP Management, CFO Services, Financial Strategy, Los Angeles, Tax Strategy | Tagged , , , , , , , , , , , , , | Leave a comment

Should You Opt for an IPO?

Should You Opt for an IPO?This week’s article is by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.

While the allure of an IPO – offering shares to employees, a cash windfall and media attention – is attractive and powerful, many more factors go into a decision to file an initial public offering.

IPO benefits can be offset by potential drawbacks like greater pressures, higher costs and less control.

Reviewed in this week’s full PDF…

Should You Opt for an IPO?

…is how deciding on whether to file an IPO is informed by weighing four benefits, three drawbacks and answers to three questions.

Los Angeles and Southern California executives and their leadership teams who are deliberating a potential initial public offering can benefit from talking with a provider of outsourced CFO services.

An on-demand CFO brings both client-side and services-side expertise in making “yes” and “no” decisions on moving forward with an IPO, as well as in completing IPOs successfully.

Posted in CFO Services, Financial Strategy, Initial Public Offering (IPO), Los Angeles | Tagged , , , , , , , , , , , | Leave a comment

Managing Through a Finance Department Transition

Managing Through a Finance Department TransitionThis week’s article is by Mark S. Becker, Partner, CFO Edge, LLC.

When a finance department leader departs in an unexpected and sudden manner, the lack of time to prepare for a transition presents multiple challenges.

It may be that the leader did not leave a clear set of processes to follow or unknown tasks are no longer being performed.

Reviewed in this week’s full PDF…

Managing Through a Finance Department Transition

…are how the negative impacts of a sudden departure can include delayed reporting, material misstatements and disruptions in strategic relationships.

By contrast, a proactive approach to a potential financial leadership transition helps preserve key relationships, assures continuity in reporting and can even discover previous inconsistencies that, when corrected, improve overall processes.

Executives leading greater Los Angeles and Southern California businesses who are seeking ways to prepare for or address the departure of a financial leader can benefit from talking with a provider of outsourced CFO services.

An on-demand CFO brings expertise in assessing current processes and responsibilities, recommending actions that will assure accounting and reporting continuity, and assisting in preparing documentation needed to address the breadth and depth of the financial leader’s responsibilities.

Posted in CFO Services, Financial Leadership, Los Angeles, Risk Management, Strategic Planning | Tagged , , , , , , , , , , , | Leave a comment

Cybercrime: A Growing Risk for Businesses & CFOs

Cybercrime: A Growing Risk for Businesses & CFOsThis week’s article is by John W. Braine, Partner, CFO Edge, LLC.

With roles of CFOs traditionally including oversight of risk management and keeping company assets safe, cybercrime’s continually growing risk significantly impacts finance departments at many businesses.

Reviewed in this week’s full article…

Cybercrime: A Growing Risk for Businesses & CFOs

…is how CFOs apply risk mitigation expertise to identify cyber threats, determine cyber security tool costs and collaborate with other departments to prevent threats from damaging company data and processes.

Building your cybercrime defense system starts with ranking all your data and apps based on their value and their relationship to revenue.

Greater Los Angeles and Southern California executives looking at cyber security best practices can benefit from talking with a provider of outsourced CFO services.

An on-demand, enterprise-grade CFO brings proven expertise in identifying data and business processes that are both most valuable and most at risk, as well as working with a managed security service provider to design and implement a comprehensive cyber security plan.

Posted in CFO Services, Cybercrime & Cyberattacks, Data Security, Disaster Recovery Planning, Los Angeles, Risk Management | Tagged , , , , , , , , , | Leave a comment

Growth Strategies: Is an M&A in Your Company’s Future?

Growth Strategies: Is an M&A in Your Company’s Future?This week’s article is by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.

While “M&A” and “mergers and acquisitions” bring to mind multibillion-dollar M&A deals, about two-thirds of disclosed M&A deals in 2016 were under $100 million and about one-fourth were under $10 million.

Given this high number of successful mid-market M&A transactions over the last year, Los Angeles and Southern California executives may be considering a merger or acquisition as a growth strategy.

Reviewed in this week’s full article…

Growth Strategies: Is an M&A in Your Company’s Future?

… is how determining if a transaction is a good fit requires weighing M&A pros and cons, assembling the right M&A advisory team and performing thorough due diligence.

Reviewed are three potential advantages and three potential drawbacks of M&A transactions, as well as examples of areas addressed during due diligence.

In addition to an M&A advisory team including an attorney, a CPA, a business broker and an investment banker, a provider of outsourced CFO services brings valuable M&A expertise.

Having participated on both the client and services sides of M&A transactions, an enterprise-grade CFO is skilled in providing comprehensive due diligence, identifying transaction strengths and areas of concern, and collaborating successfully with the executive and advisory teams.

Posted in Acquisitions, Buying a Business, CFO Services, Growth Strategies, Los Angeles, Merger & Acquisition Planning | Tagged , , , , , , , , | Leave a comment

A Healthcare Option Returns: Qualified Small Employer HRA

A Healthcare Option Returns: Qualified Small Employer HRAThis week’s article is by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.

Effective January 1, 2017, QSEHRAs – or Qualified Small Employer Health Reimbursement Arrangements – are again a way for firms with fewer than 50 employers to offer healthcare benefits.

Reviewed in this week’s full article…

A Healthcare Option Returns: Qualified Small Employer HRA

…is how QSEHRAs let employers (who are not offering group policies) reimburse employees for health insurance policies they buy for themselves and their families, for their copays and for their out-of-pocket expenses.

Eliminated by the Affordable Care Act (ACA) but reauthorized in the 21st Century Cures Act at the end of 2016, QSEHRAs have a number of requirements that employers must meet. For example, the company should have fewer than 50 full-time employees, cannot offer a group health insurance plan, and cannot use reductions in employee salaries to fund its HRA.

Los Angeles and Southern California executives looking at whether a Qualified Small Employer HRA is advantageous for their companies can benefit from talking with a provider of outsourced CFO services.

An on-demand chief financial officer brings enterprise-grade expertise assessing health insurance offerings, weighing costs and benefits of the many options, and recommending a course of action that best aligns with HR goals and employee needs.

Posted in Affordable Care Act, CFO Services, Employee Benefits, Employee Motivation, Financial Strategy, HR Management, Los Angeles | Tagged , , , , , , , | Leave a comment

How Much Financial Data is Too Much Financial Data?

How Much Financial Data is Too Much Financial Data?This week’s article is by Mark S. Becker, Partner, CFO Edge, LLC.

Charged with delivering financial information to management, a finance team can sometimes provide too much data with negative impacts in many areas.

When management receives too much financial data, it’s challenging to identify that data which is most important and actionable.

There are also added time requirements for gathering and reporting high volumes of data, activities that can increase costs and call for excessive staffing.

Reviewed in this week’s full PDF…

How Much Financial Data is Too Much Financial Data?

… is how the right financial data balance prioritizes delivery by relative importance, actionable nature and alignment with strategic goals.

Los Angeles and Southern California executives can feel they are receiving large volumes of financial data that isn’t helping them make better decisions.

A conversation with a provider of outsourced CFO services can be of significant benefit as a former enterprise CFO reviews management data needs, current reporting and current systems, as well as recommends improved reporting formats and processes.

The outcome: management receives the right financial information needed to act in areas that are critical to boosting results, improving efficiencies and reducing costs.

Posted in Accounting Systems Design, CFO Services, Financial Communication, Financial Reporting, Financial Statements, Los Angeles, Management Reporting | Tagged , , , , , , , , , , | Leave a comment

Now is the Time to Prepare for New Accounting Standards

Now is the Time to Prepare for New Accounting StandardsThis week’s article is by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.

Rapidly-approaching implementation dates for FASB and IASB changes in revenue recognition and lease accounting mean now is the time to prepare for new accounting standards.

Revenue Recognition Standard ASU 2014-9 is being updated to increase consistency across all industries in long-term contract revenue recognition and reporting, thereby enhancing financial statement evaluations and comparisons.

Lease Accounting Standard ASU 2016-02 is being updated to require that the present value of scheduled operating lease payments of more than one year must be reported as a liability on the balance sheet. This liability will be offset by reporting a “right-of-use” value of the asset. The increase in balance sheet debt can significantly impact financial ratios upon which debt covenants are based and make it more challenging to obtain financing.

Reviewed in the full PDF…

Now is the Time to Prepare for New Accounting Standards

…are specific steps that should be taken now to mitigate the potential negative impact of the new revenue recognition and lease accounting standards when they are implemented.

Los Angeles and Southern California executives can benefit from talking with a provider of outsourced CFO services who can review current revenue streams, accounting processes and debt covenants, as well as proactively plan a course of action to assure a smooth transition when the standards become effective.

Posted in Accounting Standards, CFO Services, Contract Negotiation, Corporate Governance, Financial Covenants, Financial Regulations, Financial Reporting, Financial Statements, Generally Accepted Accounting Principles (GAAP), Lease Accounting Changes, Los Angeles, Revenue Recognition | Tagged , , , , , , , , , , , | Leave a comment