When should companies seek CDO Management?

Why do I need CDO Management?

What are some signs I need a CFO?

Can my CPA be my CFO?

Can I afford a contract CFO?

What is the cost of not having financial expertise?

What are some examples of how contract CFOs bring value?

Does a company need to make a long-term investment with a contract CFO?

Does a company need someone who will actually do something, not just tell us what we already know?

Should a contract CFO assess the company's needs before offering solutions?

When should companies seek CDO Management?

Our clients choose us for many reasons. The following is a list of some of the ways to effectively utilize our services.

• A “Tune Up” of your company’s financial situation
• Interim financial management during a company downsizing
• Financial leadership when a division is being eliminated
• Preparing financial, procedural and other documents required to market a company for sale
• During transitional periods of new ownership or new management
• Provide needed stability in the financial department
• During the early growth stage of a new company before a full-time CFO is affordable
• If the future of your company remains unclear

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Why do I need CDO Management?

When it comes to hiring CDO Management here are some reasons clients tell us we have been a good investment.

• Smoother, more efficient management
• More visible decision making
• More systematic methods of making financial decisions
• Provide a way to chart progress toward your clearly defined objectives
• Bottom line results from stronger financial controls and better decisions

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What are some signs I need a CFO?

Companies that need the assistance of a CFO might find themselves in the following scenarios. If you do, you probably need to hire a CFO.

• Your banker or financing source tells you that you do
• You find yourself just taking orders instead of going after specific customers with identified sales targets/goals
• The only way you know how your company is doing is by how much money you have in the bank
• You have a gut feeling that things aren’t quite right
• You go after business based on sales volume without really knowing how much profit is involved
• You keep getting unwanted financial surprises
• You want a “Financial tune-up”

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Can my CPA be my CFO?

Well actually, we suggest that you have both. Often your business will benefit most with an inside financial manager who understands and works with the day-to-day flow of information and operations. A CPA will have great insight into your business and should be able to offer sound advice, especially in tax strategies. However, a CPA and a CFO should work as a team to provide the most effective and cost efficient financial management to your company. They should not be competitors.

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Can I afford a contract CFO?

Yes. First of all, know what your goals are for hiring a CFO and what the value of those goals are for your company. Contract CFOs provide a flexible and cost effective way to add this expertise. Bottom line; unless consultants bring more value than they cost, don’t use them.

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The cost of not having financial expertise can add up quickly. Just take a look at some of the circumstances you could find yourself in:

• Not knowing the financial impact of business decisions
• Excess expenses
• Poor cash control / poor cash attitudes
• High receivables write-offs
• Accidental defaults on financing covenants

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What are some examples of how contract CFOs bring value?

Hiring a contract CFO can be very beneficial for your company’s growth. Here are some ways a contract CFO can up your company’s potential:

• Cash management and unlocking hidden cash flow
• Timely financial information that looks to the future of the company
• CFOs will tie together today’s results with the strategic goals of the company
• Develop information and tools to assist management in making more profitable decisions
• Help the company focus on its business direction
• Provide insight with a financial tune-up of the company
• Avoid financial surprises with systematic financial projections
• Smoother, more effective management
• Financial controls

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Does a company need to make a long-term investment with a contract CFO?

No. Your investment depends upon your company’s situation. Here are some guidelines to think about when determining the investment you seek to make with a contract CFO.

• The relationship often starts out with a special project – for example, a company financial tune-up or an evaluation of a new line of business
• You can use as little or as much as required, whether it is a few days a week or a few days per month.
• In many cases, a contract CFO’s job is to work their way out of a job
  • Growing company that will eventually hire an in-house CFO
  • An occasional assessment to get the company refocused
  • Filling the gap during a change in ownership or management when hiring a new CFO isn’t possible.
  • The current CFO is on an extended leave of absence

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Does a company need someone who will actually do something, not just tell us what we already know?

This is why choosing a contract CFO is so important. They can bring an unbiased attitude and work on the areas that need their expertise the most. The focus is on achieving results, not just giving advice. Here are some things you can expect when working with a contract CFO.

• They will work with you to agree on identifying clearly defined objectives, along with measurements and other management tools to evaluate progress
• They will have supervisory authority required for implementing the decisions and achieving the desired results
• They will work as part of the management team, not be an outsider
• They will be hands-on, not just think great thoughts and tell people what they already know

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Should a contract CFO assess the company's needs before offering solutions?

Yes, unless you are buying an off the shelf solution such as packaged software. This is exactly the right idea . A contract CFO will dig in and learn your business from the inside, not just be an outsider who offers solutions before they know the details. This provides a better perspective for identifying areas and ways for improvement.

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