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

Should You Consider Implementing Project-Based Accounting?

Should You Consider Implementing Project-Based Accounting?This week’s linked article is by John W. Braine, Partner, CFO Edge, LLC.

Project-based accounting (or PBA) is frequently applied by project-based businesses in manufacturing, construction, professional services and government-contracting sectors.

Contrasted with standard accounting, expenses and revenue are tracked at the project level in project-based accounting – also referred to as job cost accounting – to better track data on and manage project costs and productivity.

Reviewed in this week’s full PDF…

Should You Consider Implementing Project-Based Accounting?

…is how project-based firms risk four negative outcomes without project-based accounting,  as well as how managing by project-level data drives eight key benefits.

The ability to monitor incurred project costs in relation to revenue improves controls over project direction, project resources and project efficiencies.

Greater Los Angeles and Southern California executives leading project-based businesses can benefit from talking with a provider of outsourced CFO services.

An on-demand CFO brings a successful client-side and services-side track record of assessing project-based accounting factors and recommending the processes needed to deliver improved outcomes.

Posted in Accounting & Finance Departments, Accounting Systems Design, Activity-Based Costing, CFO Services, Financial Planning & Analysis (FP&A), Financial Reporting, Los Angeles, Project-Based Accounting | Leave a comment

The Importance of Checking a New Client’s Creditworthiness

The Importance of Checking a New Client’s CreditworthinessThis week’s linked article is by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.

Bringing in a new client rightly generates excitement and positive experiences all around.

But too often enthusiasm not accompanied by a routine new-client credit check can result in negative financial impact for the business extending credit.

Reviewed in this week’s full article…

The Importance of Checking a New Client’s Creditworthiness

…are four dangers of not checking credit scores, three credit reporting agencies and four powerful benefits of credit checks.

Potential dangers of not determining creditworthiness include reduced revenue and slower cash flow if bills are not paid or not paid on time.

The discussion includes examples of credit reporting agency business credit scores and credit solutions.

Positive outcomes of business credit checks include improved profitability and cash flow, as well as reduced risks of future financial challenges.

Los Angeles and Southern California executives interested in enhancing their financial performance and reducing credit risks can benefit from talking with a provider of outsourced CFO services.

An on-demand CFO brings the expertise needed to review current credit policies and then recommend both new credit processes along with the right credit reporting resources needed to support stable credit extension.

Posted in Accounts Receivable, AR & AP Management, Cash Flow, Cash Management, CFO Services, Credit Management, Financial Policy, Los Angeles, Risk Management | Tagged , , , , , , | Leave a comment

The CFO as Your Company’s Risk Manager

The CFO as Your Company’s Risk ManagerThis week’s linked article is by Michael K. Menerey, Partner, CFO Edge, LLC.

As new companies move through the startup phase to become viable and growing operations, there can be a tendency to let one’s guard down or ease up.

But at any time, a variety of factors can arise and create challenges so significant that they can put continuing success at risk.

Discussed in this week’s full PDF…

The CFO as Your Company’s Risk Manager

…is how issues in HR, IT and more areas pose threats.

Having seen many of these issues first-hand, an on-demand CFO can act as a risk manager to plan for them.

Correct solutions go beyond just having insurance and are grounded in considering potential threats, evaluating alternatives, and generating plans to proactively mitigate risks.

Los Angeles and Southern California executives wanting to be prepared for factors that can negatively impact their growing businesses can benefit from talking with a provider of outsourced CFO services.

Posted in Business Insurance Coverage, CFO Services, Enterprise Risk Management - ERM, Financial Strategy, Los Angeles, Risk Management | Leave a comment

When Do You Need to Obtain an Audit?

When Do You Need to Obtain an Audit?This week’s article is by Mark S. Becker, Partner, CFO Edge, LLC.

Small and medium-sized businesses frequently don’t have audits of their financial statements done unless potential investors or lenders require them.

But as needs evolve and opportunities arise – as with a lending request or investor pitch – not having audited financials can present significant challenges.

For example, a lender or investor may require that financials comply with generally accepted accounting principles (GAAP).

If a company hasn’t historically used professional accounting resources, extensive and costly revisions may be needed to make financial statements GAAP-compliant.

Discussed in this week’s full PDF…

When Do You Need to Obtain an Audit?

…is how an outsourced CFO services professional – well-versed in lender and investor expectations – helps to bring financials up to GAAP standards and prepare for an audit.

Having audited financials benefits Los Angeles and Southern California business leaders in areas that include a greater inclination for lenders and investors to view financial presentations favorably and limiting of legal exposure based on financial statements being GAAP-compliant.

Posted in Audit Preparation, CFO Services, Financial Strategy, Generally Accepted Accounting Principles (GAAP), Los Angeles | Tagged , , , , , , , , , , , , | Leave a comment

How to Implement a New ERP Software System

How to Implement a New ERP Software SystemThis week’s downloadable article is by Sherry Rahbar, Partner, CFO Edge, LLC.

While a business owner or executive management team is always deeply involved in ERP system selection, implementation is typically turned over to the IT team with executive management much less involved.

The implementation should certainly be led by the IT group, but active and ongoing participation by non-IT professionals is a must.

The importance of the participation of non-IT professionals – the owner or executive management team, the CFO or senior financial leader and heads of user departments – on the implementation project team cannot be overstated.

The input of these non-IT company leaders assures the ERP system correctly provides the improved workflows, controls, and integration of complementary systems that will deliver more actionable management reporting and stronger overall results.

This week’s full PDF…

How to Implement a New ERP Software System

…looks at how five ERP implementation steps help assure desired outcomes like improved efficiencies, reduced labor costs and enhanced decision making.

Los Angeles and Southern California executives considering a new ERP system implementation can benefit from talking with a provider of outsourced CFO services.

An on-demand CFO brings enterprise-grade experience implementing ERP systems that have delivered greatly improved financial and operational results.

Posted in Accounting & Finance Departments, CFO Services, ERP Software, Financial Infrastructure, Los Angeles | Tagged , , , , , , , , , | Leave a comment

Could Your Company Benefit From Verticalization?

Could Your Company Benefit From Verticalization?This week’s full PDF is by John W. Braine, Partner, CFO Edge, LLC.

Verticalization, applying a vertical segmentation strategy to customer groups and offerings, generates many high-value outcomes.

Tailoring offerings to address needs of well-defined groups positions salespeople as go-to experts and enhances differentiation.

Reviewed in this week’s article…

Could Your Company Benefit From Verticalization?

…are research findings that describe exponential ROI gains when sales teams are deployed by niche segments.

These findings also show vertical alignment better meets customer needs for deeper understanding of their industries, challenges and visions.

A good place to start is to review historical customer and sales data, and doing so will generate insights on buying trends, profitability and vertical segment opportunities.

Los Angeles and Southern California executives looking at verticalization can benefit from talking with a CFO services provider.

An on-demand CFO brings client-side and services-side expertise grounded in successful verticalization initiatives.

The CFO collaborates with executives and their teams to assess opportunity strengths and challenges, as well as present benefits and risks of alternate scenarios.

Posted in CFO Services, Growth Strategies, Los Angeles, Sales Coverage Models, Sales Strategies | Tagged , , , , , , , , , , | Leave a comment

Is Industry Expertise Overrated When Choosing a Provider?

Is Industry Expertise Overrated When Choosing a Provider?This week’s article is by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.

When business leaders select a professional services firm, it is not uncommon for them to focus first on whether a provider has relevant experience in their specific industries.

But industry expertise can be overrated when choosing a provider of professional services.

For example, a provider focusing in one industry may continually see challenges and solutions from a “we’ve always done it that way” perspective.

This week’s full PDF…

Is Industry Expertise Overrated When Choosing a Provider?

…looks at how prioritizing industry expertise can too often include the inability to think outside the box or to apply contemporary best practices.

Professional services firms with leading-edge perspectives and more enterprising solutions can be more effective and cost efficient.

Other evaluation criteria – expertise, experience, reputation, references and personality fit – should also be factored into a selection.

Rather than being the first and foremost factor, industry expertise should be one of many elements weighed when seeking and selecting the right professional services provider for your company.

Posted in Customer Relationship Management, Customer Service, Financial Consulting Services, Professional Referrals, Professional Services Firms, Sales Strategies | Tagged , , , , , , , , , , | Leave a comment