Why Owners Must Be Hands-On With Forecasting

Why Owners Must Be Hands-On With Forecasting This week’s downloadable PDF is by Sherry Rahbar, Partner, CFO Edge, LLC.

Budgeting and forecasting are most frequently associated with the profit and loss statement (P&L), but this view can overlook the importance of forecasting cash flow, as well as of including a balance sheet in the projection.

Delegating forecast preparation to the finance department or controller incurs risk: without input from those running the business, missing forecast purpose and key assumptions negatively impact accuracy.

Collaboration among the owner, executive team and forecaster means the forecast will be produced in a context of relevant factors like product or service lifecycle stage, market growth and competitor comparisons.

Reviewed in this week’s full PDF…

Why Owners Must Be Hands-On With Forecasting

…are how forecast objectives inform use of a qualitative, quantitative or casual forecasting model, as well as how effective forecasting drives five benefits.

Forecasting is a front-burner consideration for Los Angeles and Southern California executives who seek financing or want a financial roadmap for their businesses.

A provider of on-demand CFO services can assist in developing a forecasting strategy tailored to each business and aligned with long-term goals.

Posted in Accounting & Finance Departments, Budgeting, Business Loans, Cash Flow, CFO Services, Financial Reporting, Financial Statements, Forecasting, Los Angeles | Tagged , , , , , , , , | Leave a comment

The Limits of DIY: When to Use an Accounting Professional

The Limits of DIY: When to Use an Accounting ProfessionalThis week’s post and linked full PDF are by Michael K. Menerey, Partner, CFO Edge, LLC.

As widespread and preferable as it sometimes is, a do-it-yourself approach is not always best in business – especially in business finances and accounting.

When finance and accounting requirements exceed an in-house bookkeeper’s abilities and training, it’s important for small business executives to know the limits of a do-it-yourself approach and when to use an accounting professional.

Businesses growth includes successfully navigating events – like raising capital or entering a joint venture – and includes sharing financial information with lenders, investors or others.

These potential partners will need to see detailed, timely and accurate financial data to help them evaluate opportunities with your business.

This week’s article…

The Limits of DIY: When to Use an Accounting Professional

…reviews how do-it-yourself management of your financial data can bring seven problems and reduce the likelihood of success with lenders and investors.

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

An on-demand CFO brings enterprise-level expertise to review current financial processes, recommend optimal finance department practices, and guide preparation of financial data for presentations to lenders and investors.

Posted in Accounting & Finance Departments, AR & AP Management, Cash Flow, CFO Services, Financial Infrastructure, Financial Operations, Los Angeles | Tagged , , , , , , , , , , | Leave a comment

All About Budgeting: Common Challenges and Solutions

All About Budgeting: Common Challenges & SolutionsThis week’s post and linked full PDF are by Mark S. Becker, Partner, CFO Edge, LLC.

From being the financial blueprint to providing views into capital availability and profitability, the budget is one of the most important elements for driving and managing successful businesses.

In our work with small and mid-sized businesses, we see a number of budgeting challenges that, when not addressed correctly, can cause inaccuracies and flaws to ripple out and negatively impact every aspect of finances and operations.

Discussed in this week’s full PDF…

All About Budgeting: Common Challenges & Solutions

…is when budgeting frequency, resources, focus, purpose and buy-in are proactively addressed, four high-level positive outcomes occur.

Los Angeles and Southern California executives looking at how their budgeting processes can be improved may be interested in talking with a provider of outsourced CFO services.

A former enterprise CFO brings on-demand budgeting expertise that includes deep understanding of successful budgeting protocols.

A CFO professional can recommend budgeting best practices around timing and measurement, as well as work with operational managers to help them run their departments better.

Posted in Business Budgeting, Cash Flow, CFO Services, Financial Operations, Financial Reporting, Financial Strategy, Los Angeles | Tagged , , , , , , , , , , | Leave a comment

Strategic Tax Planning: Vital When Expanding or Relocating

Strategic Tax Planning: Vital When Expanding or RelocatingThis week’s post and linked PDF are by John W. Braine, Partner, CFO Edge, LLC.

When Los Angeles and Southern California executives expand or relocate their businesses, they are keenly aware of costs related to land, construction, labor, supply chains, equipment and infrastructure.

But they can too frequently overlook a critical cost factor: strategic tax planning is vital when expanding or relocating.

The impact of this oversight can result in costly tax inefficiencies, especially for small and mid-sized business that don’t have internal tax departments.

Reviewed in this week’s full PDF…

Strategic Tax Planning: Vital When Expanding or Relocating

…is how expansion or relocation requires review of possible tax refunds, credits, abatements and exemptions, as well as grants and enterprise zones.

Executives who don’t have a dedicated tax department should consider bringing in a CPA or a CFO services provider early.

A professional resource of this nature can perform the needed analysis of current production capacities and, for the new facility, the most efficient configurations for labor, infrastructure, supply chains and other required elements – all of which should be planned with a goal to minimize potential negative tax consequences.

Posted in CFO Services, Los Angeles, Strategic Planning, Tax Preparation, Tax Strategy | Tagged , , , , , , , , , , , , , , , , | Leave a comment

Does Your Business Do Strategic Planning?

Does Your Business Do Strategic Planning?This week’s post and linked full PDF are by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.

While most executives would say they do strategic planning and have a strategic plan, many acknowledge they haven’t used a formal strategic planning process and their strategic plan is not documented.

There are a number of pitfalls when a company doesn’t engage in a formal strategic planning process and commit the strategic plan to document format.

For example, without a formal strategic planning process and written strategic plan, it is unlikely managers will be able to successfully focus on and achieve company goals.

This week’s full PDF…

Does Your Business Do Strategic Planning?

…looks at how a formal strategic planning process addresses three key steps, a planning session agenda and elements needed in the written strategic plan.

When a written strategic plan is in place and shared by company leaders, multiple benefits can include better decision making and improved performance.

Los Angeles and Southern California executives considering a formal strategic planning process and committing outcomes to a written document may be interested in talking with an outsourced CFO services provider.

A professional CFO has many years of experience engaging in formal strategic planning processes and can leverage her or his expertise to moderate an off-site strategic planning session, as well as support the process of writing the strategic plan.

Posted in CFO Services, Financial Strategy, Los Angeles, Strategic Planning | Tagged , , , , , , , , , , | Leave a comment

When Should You Outsource vs. Do Work In-House?

When Should You Outsource vs. Do Work In-House?This week’s post and linked full PDF are by Sherry Rahbar, Partner, CFO Edge, LLC.

Given outsourcing’s potential benefits and “gig economy” trending, executives are more frequently looking at when they should outsource vs. do work in-house.

The use of third-party service providers, consultants and freelancers continues to rise. Indeed, Intuit research has projected that by 2020 independent contractors will make up 40 percent of the workforce.

There is no one-size-fits-all answer, and this week’s full PDF…

When Should You Outsource vs. Do Work In-House?

…looks at how outsource vs. in-house decisions are informed by five potential benefits and four potential drawbacks.

Los Angeles and Southern California executives considering whether to outsource a function, what functions can be outsourced, and how to arrive at the right decision can benefit from talking with a CFO services provider.

A CFO services professional can help assess your business needs, perform an outsourcing cost/benefit analysis, and recommend the most efficient and cost-effective staffing strategy.

Posted in CFO Services, Cost Analysis, Cost Cutting Strategies, Financial Strategy, Los Angeles, Outsourcing | Tagged , , , , , , , , , | Leave a comment

The Importance of Keeping Your House in Order

The Importance of Keeping Your House in Order This week’s post and linked full PDF are by Michael K. Menerey, Partner, CFO Edge, LLC.

When they don’t keep their financial and business house in order, executives leading small and mid-sized companies face more hurdles as they seek funding or want to do a transaction.

Over recent months, I have seen multiple examples of this. Insufficient preparation has resulted in delayed or missed business opportunities.

Now is the time to get your business and financial house in order – either because you are deliberating a current opportunity, or you want to be well-positioned for a future opportunity that may arise unexpectedly.

Reviewed in this week’s full PDF…

The Importance of Keeping Your House in Order

…is how addressing six questions helps position you to capitalize on opportunities with investors, lenders and potential acquirers.

Los Angeles and Southern California business leaders who are encountering hurdles with a current opportunity – or wanting to be prepared for a future one – can benefit from talking with a provider of outsourced CFO services.

An on-demand CFO brings a successful track record – both on the client side and the services side – of conducting business “physicals” and determining where you are with your business and financial housekeeping.

Posted in CFO Services, Corporate Governance, Financial Infrastructure, Financial Leadership, Financial Strategy, Financing, Financing Presentations, Los Angeles | Tagged , , , , , , | Leave a comment

Robotic Process Automation: The Future of Digital Technology

Robotic Process Automation: The Future of Digital TechnologyThis week’s post and linked full PDF are by John W. Braine, Partner, CFO Edge, LLC.

In our recent article, The Need to Bring Finance & Accounting into the Digital Age, we looked at how important it is for finance groups to apply digital technology in order to best serve their departments and organizations, as well as their customers.

In this follow up article…

Robotic Process Automation: The Future of Digital Technology

…we look at the robotic process automation (RPA), its definition, and potential negative impacts of not applying it both in finance and throughout a company.

By automating repetitive and non-value added tasks, robotic process automation improves decisions, control, compliance and risk management.

Los Angeles and Southern California executives interesting in increasing operational efficiencies and reducing costs may be interested in talking with a provider of outsourced CFO services.

An on-demand CFO approaches robotic process automation by assessing current tasks that are repetitive, costly, and subject to manual errors, and then recommend the RPA processes needed to enhance productivity and deliver improved decision-making intelligence.

Posted in Accounting & Finance Departments, Accounting Systems Design, Cost Cutting Strategies, Finance & Digital Technology, Financial Operations, Financial Strategy, Financial Trends, Los Angeles, Risk Management | Tagged , , , , , , , | Leave a comment

Key Steps to Building a High-Performance Finance Staff

Key Steps to Building a High-Performance Finance StaffThis week’s post and linked full PDF are by Mark S. Becker, Partner, CFO Edge, LLC.

Given increasingly important finance department contributions to overall strategic direction, it is critical to know and apply the key steps to building a high-performance finance staff.

Considering what you want your company and finance group to look like in the future helps identify the skillsets prospective hires must have.

Looking at companies similar to yours and industry benchmarks provides insight into the types of team members needed to deliver desired performance within established budgets.

Reviewed in this week’s full PDF…

Key Steps to Building a High-Performance Finance Staff

…is how applying recommended steps promotes optimized performance and reduces downsides when the right employees are not hired or matched to incorrect tasks.

Leveraging many years of experience building and managing finance departments, an outsourced CFO services provider brings a clear understanding of position technical requirements in the form of needed skillsets, as well as the ability to set and monitor performance benchmarks.

Posted in Accounting & Finance Departments, Employee Motivation, Employee Retention, Financial Leadership, Financial Operations, Financial Strategy, Los Angeles | Tagged , , , , , , | Leave a comment

Should Your Company Purchase Accounts Receivable Insurance?

Should Your Company Purchase Accounts Receivable Insurance?This week’s post and linked full PDF are by Arthur F. Rothberg, Managing Director, CFO Edge, LLC.

As an executive leading a closely-held business and continually attuned to risk management, the risk of non-payment by a large customer poses a compelling question: Should your company purchase accounts receivable insurance?

Also known as trade credit insurance, accounts receivable insurance pays out when a customer fails to pay an invoice.

Rather than being a replacement for solid credit management, accounts receivable insurance supplements credit policies and processes.

Receivables insurance lowers customer concentration risk and can help obtain capital as banks view insured receivables as secure collateral.

Discussed in this week’s full PDF…

Should Your Company Purchase Accounts Receivable Insurance?

…are how accounts receivable insurance works, what it can cover, variables impacting premiums, and its multiple benefits.

Los Angeles and Southern California executives interested in knowing if accounts receivable insurance makes sense for their businesses can benefit from talking with a provider of outsourced CFO services.

A CFO professional can review accounts receivable processes and customer concentration risk to help determine if receivables insurance is a wise business decision.

Posted in Accounting & Finance Departments, Accounts Receivable, Accounts Receivable Insurance, Cash Flow, CFO Services, Los Angeles, Risk Management | Tagged , , , , , , , | Leave a comment