Should You Use a Professional Employer Organization?

Should You Use a Professional Employer Organization?This week’s article is by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.

As you look at ways to increase the focus of your valuable resources on core competencies, an important question arises: Should you use a Professional Employer Organization?

Many small businesses and startups are not ready to budget a full-time HR director or staff, and they have moved HR functions to Professional Employer Organizations or PEOs.

Reviewed in this week’s full PDF…

Should You Use a Professional Employer Organization?

…is how companies and PEOs become co-employers: Companies hire and manage staff, while PEOs run HR functions, compliance and benefit packages that rival large-firm benefits.

These benefit packages can include the full spectrum of insurance offerings – health, life, vision, dental and disability – as well as retirement plans.

Los Angeles and Southern California executives who are looking at more efficient and cost-effective ways to operate HR can benefit from talking with a provider of outsourced CFO services.

Bringing the experience and expertise of a former enterprise chief financial officer, an on-demand CFO can work with you to identity your current staff and budget costs for HR and recommend the best strategic path.

Posted in Employee Benefits, Employee Wages & Salaries, HR Management, Outsourcing, Professional Employer Organizations | Tagged , , , , , , , , , , , , , , | Leave a comment

The Role of Finance in Creating a Customer-Centric Culture

The Role of Finance in Creating a Customer-Centric CultureThis week’s article is by John W. Braine, Partner, CFO Edge, LLC.

Grounding business actions in a deep understanding of what customers want is essential, and it’s helpful to look at the role of finance in creating a customer-centric culture.

As departments collaborate, share data and innovate, they discover customer patterns that support product and service delivery better aligned with constantly-evolving customer needs.

Reviewed in this week’s full article…

The Role of Finance in Creating a Customer-Centric Culture

…is how finance and other departments put competitiveness, market share and revenue at risk if they are not engaged in strong and rapid cross-functional innovation,

Also discussed are four process and mindset elements that need to accompany collaboration tools, as well as three benefits of committing to continuous innovation.

Los Angeles and Southern California business leaders recognize customer attraction and retention spring from a customer-centric culture and may be looking at ways to enhance their cross-department collaboration and innovation.

A conversation with an on-demand CFO services provider can be beneficial: a professional of this nature brings a successful track record working with teams to gather and analyze data, apply discoveries to generate innovative customer approaches and realize improved performance in multiple areas.

Posted in Big Data, CFO Services, Customer Service, Customer-Centric Culture, Data Mining, Financial Leadership, Growth Strategies, Los Angeles, Sales Strategies | Tagged , , , , , , , , , | Leave a comment

When Should You Consider Hiring a Part-Time CFO?

When Should You Consider Hiring a Part-Time CFO?This week’s article is by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.

In this third and final article in our series on a Project CFO, an Interim CFO and a Part-Time CFO, we explore scenarios when you should consider hiring a Part-Time CFO.

While a Project CFO generally works on a specific project and an Interim CFO is usually brought in full-time when the former CFO has departed, a Part-Time CFO acts as a company’s CFO and delivers the financial leadership and expertise of a CFO – but on a part-time basis.

A Part-Time CFO can be engaged for as many days in a week or month that the company’s situation needs, and the client company receives the benefits of having a CFO on its leadership team even though the company may not yet need or have the budget for a full-time CFO.

Reviewed in this week’s full PDF…

When Should You Consider Hiring a Part-Time CFO?

…are Part-Time CFO situations, skills, focus, frequency of presence and four significant benefits of bringing in a Part-Time CFO.

Los Angeles and Southern California executives who want the high-caliber financial leadership of a CFO – without the full-time salary and overhead – can gain many positive outcomes by engaging a Part-Time CFO.

This is the third and final article in a series on the types of outsourced CFOs. Following are links to the other two articles in the series:

When Should You Consider Hiring a Project CFO?
When Should You Consider Hiring an Interim CFO?
When Should You Consider Hiring a Part-Time CFO? – (This article.)

Posted in CFO Services, Financial Leadership, Interim CFO, Los Angeles, Part-Time CFO, Project CFO | Tagged , , , , , , , , , , , , , | Leave a comment

When Should You Consider Hiring an Interim CFO?

When Should You Consider Hiring an Interim CFO?This week’s article is by Howard Goldman, Partner, CFO Edge, LLC.

In this second article in our series on scenarios and benefits of a Project CFO, an Interim CFO and a Part-Time CFO, we explore situations when you should consider hiring an Interim CFO.

While a Project CFO tends to focus on a clearly-defined project, an Interim CFO (sometimes also referred to as a Temporary CFO) is frequently engaged when a sitting CFO has left the organization or when a sitting CFO needs additional high-level financial expertise or bandwidth to help the organization complete a significant event or transaction.

Reviewed in this week’s full PDF…

When Should You Consider Hiring an Interim CFO?

…are Interim CFO descriptors for skill sets, focus and duration of presence, as well as the benefits of bringing in an Interim CFO.

A former enterprise CFO acting in the role of an Interim CFO or Temporary CFO brings both high-caliber financial leadership skills and authoritative financial solution expertise.

An Interim CFO can provide financial and operational guidance to the executive management team; communicate with investors, lenders, vendors and other stakeholders; and assist in recruiting and training the new full-time CFO.

Los Angeles and Southern California executives who are looking at the best way to maintain continuity in financial leadership after the departure of a CFO can realize significant benefits by bringing in an Interim CFO.

This is the second in a series of three articles on the types of outsourced CFOs. Following are links to the other two articles in the series:

When Should You Consider Hiring a Project CFO?
When Should You Consider Hiring an Interim CFO? – (This article.)
When Should You Consider Hiring a Part-Time CFO?

Posted in CFO Services, Financial Leadership, Interim CFO, Leveraging CFO Expertise, Los Angeles, Part-Time CFO, Project CFO | Tagged , , , , , , , , , , , , , , , | Leave a comment

When Should You Consider Hiring a Project CFO?

When Should You Consider Hiring a Project CFO?This week’s article is by Michael K. Menerey, Partner, CFO Edge, LLC.

When a company must address a specific project and needs high-level financial expertise not available internally, it can benefit by hiring a Project CFO.

An on-demand Project CFO brings authoritative solution expertise and focuses on a clearly-defined project, although there can frequently be sub-projects that need to be completed to achieve the overall project goal.

For example, the overall goal of preparing a financing presentation to obtain funding may require completing an audit, completing restatements or making financials GAAP-compliant.

Reviewed in this week’s PDF…

When Should You Consider Hiring a Project CFO?

…are nine scenarios that illustrate financial and operational challenges effectively resolved by an on-demand Project CFO.

A former enterprise CFO acting in the role of a Project CFO applies needed expertise and bandwidth to prioritize project elements and move them along to successful completion.

This is the first in a series of three articles on the types of outsourced CFOs. Following are links to the other two articles in the series:

When Should You Consider Hiring a Project CFO? – (This article.)
When Should You Consider Hiring an Interim CFO?
When Should You Consider Hiring a Part-Time CFO?

Posted in CFO Services, Financial Leadership, Interim CFO, Leveraging CFO Expertise, Part-Time CFO, Project CFO | Tagged , , , , , , , , , | Leave a comment

How to Prepare Your Integrated Financial Plan for Investors

How to Prepare Your Integrated Financial Plan for InvestorsThis week’s article is by Mark S. Becker, Partner, CFO Edge, LLC.

Demonstrating growth prospects and potential for high ROI attracts venture capital, and your probability of closing a venture deal increases in proportion to how thoroughly you prepare your integrated financial plan for investors.

Your balance sheet, cash flow statement, income statement and supporting financial information – essentially reporting on all financial areas of your business – are contained in your integrated financial plan.

Discussed in this week’s full PDF…

How to Prepare Your Integrated Financial Plan for Investors

…is how plans that address investor concerns, identify key strengths, and update projections with current results enhance investor presentations.

And well-prepared integrated financial plans are not just for potential investors. They are valuable operational tools for the current management team.

Los Angeles and Southern California may be interested in talking with a provider of outsourced CFO services who brings expertise in preparing integrated financial plans for venture capital firms and other types of investors.

For example, a professional CFO knows what an integrated financial plan should include and what elements should be emphasized to help investors see how they can obtain return on their investments.

Posted in CFO Services, Equity Financing, Financial Planning & Analysis (FP&A), Financial Reporting, Financial Statements, Financing Presentations, Investor Presentations, Los Angeles | Tagged , , , , , , , , , , , | Leave a comment

The Importance of Managing Working Capital for Liquidity

The Importance of Managing Working Capital for LiquidityThis week’s linked article is by John W. Braine, Partner, CFO Edge, LLC.

Managing working capital for liquidity has been a critical success factor for companies surviving and thriving since the economic downtown.

A disciplined approach – spending wisely, controlling costs and conserving cash – has resulted in these companies now being positioned to take advantage of growth opportunities.

Discussed in this week’s full article…

The Importance of Managing Working Capital for Liquidity

…is how managing to the right KPIs drives stronger cash positions, better access to credit and greater abilities to invest in growth initiatives.

For example, metrics for days sales in inventory (DSI), days payable outstanding (DPO) and days sales outstanding (DSOs) reflect the effectiveness of processes like processing payments, managing inventory and invoicing.

Greater Los Angeles and Southern California business leaders interested in assessing and strengthening their cash reserves and cash flow processes can benefit from talking with an outsourced CFO services provider.

A formerly-seated enterprise CFO can provide analysis and recommendations to improve cash flow processes and boost working capital positions.

Posted in Accounts Payable, Accounts Receivable, AR & AP Management, Budgeting, Cash Flow, Cash Management, CFO Services, Financial Planning & Analysis (FP&A), Growth Strategies, Los Angeles | Tagged , , , , , , , | Leave a comment

How to Minimize Risks in Family Business Succession

How to Minimize Risks in Family Business SuccessionThis week’s article is by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.

When considering passing their businesses to family members, owners should be aware of risk factors and understand how to minimize risks in family business succession.

Succession risk planning is needed to prevent family businesses from not making the ownership transition to designated heirs.

Discussed in this week’s full PDF…

How to Minimize Risks in Family Business Succession

…is the importance of reducing risks in family business succession planning by being aware of the 5 D’s – death, disability, disaster, divorce and disagreements.

While we may not like to think about these factors, the failure to consider and prepare for them can place the future of your business in jeopardy.

Los Angeles and Southern California business owners who are contemplating the transfer of their businesses to family members can benefit from talking with a provider of outsourced CFO services.

An on-demand CFO brings expertise in understanding how the 5 D’s have caused disruptions in business operations and hindered smooth succession transitions to heirs.

A professional CFO is also experienced in assessing these risk factors and working with owners to prepare for them in efficient and cost-effective ways.

Posted in CFO Services, Estate Planning, Exit Planning, Family Businesses, Los Angeles, Risk Management, Succession Planning | Tagged , , , , , , , , | Leave a comment

Making the Finance Department a True Team Player

Making the Finance Department a True Team PlayerThis week’s linked article is by Michael K. Menerey, Partner, CFO Edge, LLC.

In some organizations, the finance department is viewed by other groups as a necessary evil: continually nagging with requirements on how things should be done or for more information, as well as failing to deliver needed and timely financial information.

Reviewed in this week’s linked article…

Making the Finance Department a True Team Player

…is why a critical shift in how finance teams see themselves and their roles is required, and how that shift begins with finance staff seeing other groups as their customers and delivering exceptional customer service as their primary role.

The shift is supported by three primary steps that address understanding, information clarity and interdepartmental communication.

Executives leading greater Los Angeles and Southern California businesses can benefit from talking with a provider of outsourced CFO services.

A formerly-seated chief financial officer brings a proven track record of organizing and leading financial teams to serve the needs of internal customers and will share with you how doing so will deliver value in many areas.

Posted in Accounting & Finance Departments, Financial Communication, Financial Leadership, Los Angeles | Tagged , , , , , , , | Leave a comment

The Benefits of Establishing Strong Vendor Relationships

The Benefits of Establishing Strong Vendor RelationshipsThis week’s article is by Mark S. Becker, Partner, CFO Edge, LLC.

Viewing vendors as partners and consistently seeking win-win outcomes help deliver the many benefits of strong vendor relationships.

Even in successful long-term relationships, periodic vendor reviews are needed to assure that your functional requirements are being met and that your expected overall value is being delivered.

A second key element is finding the right balance in structuring accounts payable activity. While longer payment terms can increase working capital, improve cash flow, and decrease the need for short-term borrowing, negotiations must also address vendor needs to assure both parties benefit.

Reviewed in this week’s full PDF…

The Benefits of Establishing Strong Vendor Relationships

…is how focusing on three areas in vendor reviews and managing accounts payable to avoid three pitfalls brings win-win outcomes with vendor partners.

An outsourced CFO services provider can be a valuable vendor relationship resource for executives leading greater Los Angeles and Southern California businesses.

Experienced as both a former enterprise CFO and as an advisor to multiple businesses, an on-demand CFO brings a comprehensive understanding of payment types and terms, as well as understanding of the concerns and goals of your company and of your vendor partners.

Posted in Accounts Payable, AR & AP Management, CFO Services, Credit Management, Los Angeles, Supply Chain Management, Vendor Relationships | Tagged , , , , , , | Leave a comment