Determine what funds you need for growth
Review the best finance options (there may be a lot more than you think!)
Facilitate discussions with lenders/investors etc.
Provide information required by lenders/investors etc.
It’s not just about setting the forecast and putting it in the desk drawer.
Accurate and detailed forecasting will help you and/or your lender/investor to be confident and well informed. It needs to be constantly reviewed against actual results and questions asked if things are ‘off track’. To ensure you reach your goals this is vital. Swift investigation of variances and immediate rectification will avoid you missing your profit targets and enduring cash flow problems.
Presenting your business properly to a lender/investor will make a big difference to your ability to secure their confidence and the funds you need. Getting help with the presentation is vital if you’re not an expert at this. Being able to provide financial information in the right way and answer their questions intelligently makes a big difference to the outcome.
This is a report that includes a Profit & Loss Budget, Cash Flow Forecast and Balance Sheet Forecast. Most lenders/investors want to see these to be confident the business is on track to be profitable, cash flow positive and solvent. A Profit & Loss Budget showing great sales and profit at the end of the financial year is no use, if the business goes bust in the middle due to poor cash flow and Balance Sheet management.
Accounting systems are often set up to handle tax obligations e.g. GST/PAYG etc. and for keeping track of supplier payments. In our experience they are often also not very well set up i.e. there are mistakes in data entry that compromises the quality of the information. If reports are being used that are inaccurate for lenders/investors this will give a bad impression and reduce their confidence.
Lenders/investors have their own way of looking at business results. They analyse financial information in a particular way that meets their need to feel confident in the ability of the business to meet its obligations and be profitable and sustainable. A good CFO understands their needs and can supply them seamlessly as well as providing the management information useful to the business owner.
Lenders/investors have a particular way of looking at business opportunities. Their view will be very different from that of the business owner. They have no emotion in their decision making… they just want cold hard facts and to be confident the business can meet its commitments and repay loans/dividends. It’s better if an unbiased third party does this to alleviate inefficiency and frustration. It also gives a good impression that the business owner has professional financial control in place.
We often find money sitting in the wrong place i.e. not in business bank accounts. There are quite a few places it can be. We’re happy to discuss them with you and help you to move the funds more quickly into your business bank account, so that you can more easily pay all your expenses and grow your business more efficiently.
We have an understanding of our business like never before! We now have accurate Key Performance Indicators (KPIs) which means we can make informed business decisions and grow the company profitably at every turn.
Warwick Glendenning, CEO
Power Systems Consultants Group
If you are working frantically in your business, it really doesn’t matter how busy you are – it is crucial to take the time to work on your business to ensure that all the effort is worthwhile. Our CFO On-Call is invaluable in guiding and supporting us around financial hazards.
Lesley, Peter & Joshua Turner, Directors
I can’t speak highly enough of John and CFO On-Call. I would recommend them to any business owner because we don’t know about this stuff. We don’t have the time to do an accounting degree, but we need someone to guide us. I’m now living the dream – running the business remotely! The internet has freed me up to work remotely. Everything is in the cloud now and CFO On-Call plays a big part as my Virtual CFO!
Michael Brewitt, Director
Velocity Electrical, Construction
We now have the useful financial information we need to make informed financial and business decisions at the right time. His input has led to a 27% improvement in profitability.
Greg Jacques, General Manager
My CFO On-Call Michael came in and implemented a range of new systems and reports that we still use today. I now have a P&L which I can read and actually understand! Michael’s great at putting things into layman’s terms and helping us make sense of complex concepts. And his value doesn’t just stop at numbers – due to his commercial background he has also been a great asset to us in terms of recruitment and managing staff.
Jenny March, Owner
Before engaging CFO On-Call, the bank wouldn’t support me, so debtor financing was my only option. CFO On-Call set up our new management reporting and forecasting, and the bank changed their mind. Since then, we have grown total revenue by 17%, increased gross margins from 17% to 37% and improved debtor days by 36%. We’re going from strength to strength!
Peter Deverall, CEO
Safa Glass, Brisbane