At: Slow payers
The shortfall, weeks ahead
You find out about a cash shortfall the week it happens.
What we do
A rolling 13-week cash-flow forecast, updated monthly.
Fractional CFO
Many growing businesses need someone to think about the money every month but not a full-time finance executive. We take that role part-time: we build the forecast, set the budget with you, track a few numbers that matter, and meet with you regularly to decide what to do next.
Where a CFO comes into play as a business grows
The points where this service comes into play are numbered.
- Stage 1Past the bank balanceAn owner whose business has grown past the point where the bank balance tells the story.
- Stage 2Slow payersA business with good sales and tight cash, where invoices are paid late.1
- Stage 3PricingPrices set years ago, and margins nobody has checked.2
- Stage 4The budgetSpending decisions made with or without a plan.3
- Stage 5Growth decisionsA company planning to hire, open a second location or buy major equipment.
- Stage 6The finance meetingOwners who want a regular finance meeting with someone outside the business.4
Numbered points are explained below.
The four points, explained
At: Pricing
Which products make money
Prices were set years ago and you don’t know which products or jobs make money.
What we do
Margin analysis by product, service or job.
At: The budget
A budget for every decision
There is no budget, so every spending decision is a guess.
What we do
An annual budget, built with you and compared with actual results each month.
At: The finance meeting
Numbers someone explains
The monthly numbers arrive, but nobody explains what they mean.
What we do
A monthly or quarterly meeting to go through the numbers and decisions. A short set of key measures, agreed with you, reported monthly.
What the engagement includes
Request a proposal- Cash forecasting
A rolling 13-week cash-flow forecast, updated monthly.
- Budgeting
An annual budget, built with you and compared with actual results each month.
- Margins
Margin analysis by product, service or job.
- Key measures
A short set of measures, agreed with you, reported monthly.
- The finance meeting
A monthly or quarterly meeting to go through the numbers and decisions.
- Decision support
Financial input to decisions such as hiring, leasing or buying equipment.
- Something not listed?
Ask us. If it is Canadian tax, bookkeeping or advisory work, we will tell you plainly whether we can help.
How it runs
Diagnostic
We look at your recent books, bank statements and pricing, and meet with you to agree the questions that matter most.
Build the tools
We build the cash-flow forecast, the budget and the monthly measures, using your own numbers.
Monthly rhythm
Each month we update the forecast, compare results with the budget, and send a short commentary.
Finance meeting
We meet to go through the numbers and agree actions. Frequency is set at the start.
How is this different from bookkeeping?
Bookkeeping records what happened. Fractional CFO work uses those records to plan what happens next: cash, pricing, budgets and decisions.
How much of your time does it involve?
It depends on the size of the business and how often we meet. Each month you receive the updated cash-flow forecast, the budget comparison and the measures report, and in each meeting we go through them with you so you know what the numbers mean and what to do next.
Do you need to use our accounting software?
We work from your existing system where the data is reliable. If it is not, we fix the books first.
Can you help us prepare for a meeting with the bank?
We can help you understand your own numbers and forecast before the meeting. The bank decides what information it needs from you.