The Benefits of Bank Treasury Management Tools

The Benefits of Bank Treasury Management ToolsThis week’s article is by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.

The many benefits of bank treasury management tools are just as compelling as the benefits of accounting and other software programs that small and mid-sized businesses use.

These tools improve cash flow, increase efficiencies and reduce fraud risks, yet bank treasury management tools are often underutilized by small and mid-sized businesses due to the perception that they are available only for banks’ large corporate customers.

Reviewed in this week’s full PDF version…

The Benefits of Bank Treasury Management Tools

…are six effective bank treasury management tools: ACH payments, receivables and payables lockbox services, remote deposit capture, B2B merchant services, positive pay and P-cards.

Greater Los Angeles and Southern California executives who are interested in accelerating cash flow can benefit from talking with a provider of outsourced CFO services.

A former enterprise CFO has deep expertise in analyzing current receivables and payables processes and implementing bank treasury management tools to lower costs, save time, reduce errors and increase external and internal security related to cash flow cycles.

Posted in AR & AP Management, Bank Treasury Management, Cash Flow, CFO Services, Fraud Prevention, Los Angeles, Purchase Cards or P-Cards, Risk Management | Tagged , , , , , , , , , , , , | Leave a comment

BAT & Tax Reform: How You Can Prepare

BAT & Tax Reform: How You Can PrepareThis week’s article is by Mark S. Becker, Partner, CFO Edge, LLC.

Among tax reform ideas floated by the new administration and Republicans in Congress is a border adjustment tax – or BAT – that would incent American companies to manufacture fewer goods overseas and more goods here.

Elements of a BAT include removal of tax deductions for imported goods and making tax-free exports and other sales overseas, moves designed to increase and retain manufacturing jobs in the U.S.

Reviewed in this week’s full PDF…

BAT & Tax Reform: How You Can Prepare

…is while a BAT isn’t at hand, importers and exporters should address “what if’s” related to possible changes in cost, supply chain and tax areas.

Greater Los Angeles and Southern California executives leading firms that derive revenue from imports and exports can benefit from talking with a provider of outsourced CFO services.

A former enterprise CFO brings deep expertise in corporate tax strategy, supply chains and achieving the correct balance between short-term and long-term interests.

A primary goal of working with on-demand CFO is to maximize current tax opportunities while preparing for potential tax changes in ways that will reduce risks and continue to realize advantages.

Posted in Border Adjustment Tax - BAT, Cost Analysis, Financial Regulations, Los Angeles, Outsourced CFO Services, Risk Management, Tax Code, Tax Compliance, Tax Strategy | Tagged , , , , , , , , , | Leave a comment

Building Resilience: The Role of the Finance Department

Building Resilience: The Role of the Finance DepartmentThis week’s article is by John W. Braine, Partner, CFO Edge, LLC.

With cybercrime and other major business disruptions increasing in frequency and scope, an essential strategy is to make building resilience the role of the finance department.

With its view across an organization and expertise in risk management and analytics, the finance department should lead the way in developing “what if” scenarios to assess risk and in preparing action plans to address business disruptions.

Reviewed in this week’s full PDF…

Building Resilience: The Role of the Finance Department

…are five risks of not planning for disruptions, five steps finance teams should take and six benefits of being prepared.

With a proactive and collaborative approach in planning for disruptions, the finance department will help minimize risks, as well as reveal potential organizational weaknesses that must be addressed.

Executives leading businesses in Greater Los Angeles and Southern California who are interested in knowing what their risk factors are – and what should be done about them – can benefit from talking with a provider of outsourced CFO services.

An on-demand CFO brings both client-side and services-side expertise in assessing and prioritizing risks, in developing proactive corrective actions to mitigate risks now, and in preparing loss-recovery plans should a disruption occur.

Posted in Accounting & Finance Departments, CFO Services, Data Security, Disaster Recovery Planning, Financial Leadership, Financial Strategy, Los Angeles, Risk Management | Tagged , , , , , , , , , , , | Leave a comment

How to Build a Strong Relationship with Your Banker

How to Build a Strong Relationship with Your BankerThis week’s article is by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.

Understanding how to build a strong relationship with your banker is as critical as cultivating positive relationships with your CPA and attorney.

Indeed, the phrase, “triad of advisors,” is frequently used to refer to these three professionals and their roles as key resources for business owners.

Reviewed in this week’s PDF…

How to Build a Strong Relationship with Your Banker

Connecting now – not just when a loan is needed – recognizes your banker as a powerful go-to resource for input on challenges and goals.

Ongoing communication along with sharing important developments positions your banker as a partner who will work with you to develop solutions in areas of your business that go beyond loans.

Greater Los Angeles and Southern California executives interested in ways to enhance their banker relationships can benefit from talking with a provider of outsourced CFO services.

A professional CFO brings deep expertise in building and maintaining mutually beneficial relationships with business bankers – from identifying the right bank to preparing GAAP-compliant financials that give bankers the comprehensive and accurate financial views they need to work best with you.

Posted in Banking Relationships, Business Loans, CFO Services, Financial Communication, Financing, Financing Presentations, Generally Accepted Accounting Principles (GAAP), Los Angeles | Tagged , , , , , , , , , , , , , , , | Leave a comment

How to Structure Your Business Capital

How to Structure Your Business CapitalThis week’s article is by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.

Given the different types of business capital – such as loans, equity and retained earnings – and their benefits and drawbacks, a critical factor in every company’s success is a comprehensive understanding of how to structure business capital.

Included in this week’s capital structure review…

How to Structure Your Business Capital

…are looks at six types of debt, investor equity and organic growth driven by retained earnings, as well as examples of pros and cons of each capital type.

The right capital structure is grounded in carefully weighing decision factors related to capital costs, ownership stakes, control and agreement terms.

Also discussed is the importance of maintaining accurate, timely and credible financial reports and statements – regardless of capital structure.

Greater Los Angeles and Southern California executives who are deliberating a capital-raising initiative or restructuring their capital can benefit from talking with a provider of outsourced CFO services.

An on-demand enterprise CFO brings both client-side and services-side expertise in determining which type of capital is most advantageous, as well as in developing financial reports, statements and presentations that provide the exact information bankers and investors need to make funding decisions.

Posted in Business Loans, Capital Structure, CFO Services, Debt Financing, Equity Financing, Financing, Financing Presentations, Investor Presentations, Los Angeles, SBA Loans | Tagged , , , , , , , , , , , , , , , | Leave a comment

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