YourCfo :: The Part-Time CFO Program

At Your CFO, we leave nothing to chance. The three drivers of profitability (strategy, process improvement and operational infrastructure) have been transformed into 9 independent learning steps, called the PART-TIME CFO Program. Each step provides your business with profit building foundations in order to build further success.

The PART-TIME CFO Program is built on the premise that financial management strategies do not exist without successful implementation. The PART-TIME CFO Program blends financial management solutions with a detailed implementation plan to ensure success.

You will notice that the PART-TIME CFO Program consists of 9 independent learning stages. Not all businesses will need to start at step 1 and move through to step 9. The PART TIME CFO Program understands that businesses are at different stages of financial maturity. Your CFO conducts a detailed review of your businesses prior to the commencement of the program in which your businesses financial foundations are assessed.

STEP 1:

Where does your business sit on the road to financial maturity? You cannot articulate the ideal future state of the organisation, without a clear understanding of the current financial health of your business. Too many business owners have very little knowledge as to how much they're making or spending, and even less knowledge as to how much their business is worth. This step includes; reconciliation of the businesses financial statements (year to date); examination of “risky” general ledger accounts to ensure tax deductibility is optimised; as well as a summary of your businesses federal and tax obligations.

STEP 2:

Business Methodology – What makes businesses successful? Great businesses share a common trait; they faultlessly execute day to day activities while maintaining a clear vision for the future. This stage provides business owners with a framework for how to create a commercially viable business which operates on its own.

STEP 3:

Preparing For Growth - Knowing which numbers to manage. Re-configure the businesses chart of accounts to make financial statements meaningful. How many times have you stared blankly at your financial statements not know what they mean or where to begin? By creating a better chart of accounts, you will allow for a better flow of profit. Most businesses generate 80% of their profit from 20% of clients yet most accounting systems treat all transactions (large or small) in the same manner. Doesn’t it make sense to track those sales which have the greatest impact on your bottom line?

STEP 4:

Working capital management. The stage identifies how to map the businesses five cash builders and determine what revenue the business can generate without requiring additional capital. This stage will show business owners how to collect debtors quicker, stretch out payables and give greater certainty to cash flow reporting by adopting specific cash building solutions. Ensures the business has appropriate cash reserves to support longer term growth plans.

STEP 5:

Managing the businesses break-even position. Business owners should not only frequently monitor their break-even positions, but adopt specific break-even strategies which increase their chances of long-term survival. It is amazing how many business owners do not know their three largest expenses nor have any strategies in place to reduce them or keep them constant? This step specifically attacks your businesses break even position by identifying strategies which, reduce fixed costs; reduce variable costs and increase revenue. Efficiencies will be driven through technological advancements in billing, procurement, receivable management and collections.

STEP 6:

Producing real time accounts: Radically improve the businesses operating decisions by ensuring that financial reports are not only produced accurately but within days after month end. How to create a "summary report", containing key financial metrics within one day after month end and a comprehensive management report by the end of day five after month end which compares results to expectations.

STEP 7:

Producing rolling financial forecasts - Bringing forward planning to the business: Grow revenue, grow profit margins, and grow the businesses future value. The future is more predictable than what you may think. The businesses future financial position is the sum of each daily result, added together for the next 365 days. It demonstrates how to realistically understand what the business is capable of achieving and translates into meaningful financial goals.

STEP 8:

Exploding growth – Great businesses not only develop a clear vision for the future; they understand what it takes to get there. This step shows business owners:

a.	How to satisfy customer needs: Provides the tools to evaluate the businesses delivery of customer value.
b.	Knowing which processes to improve in order achieve success: How to review and document businesses processes; dividing them into groups from most critical to least critical; establishing a time frame to improve critical processes based upon an assessment of time, costs and benefits derived. Understand bottlenecks in the delivery of processes and customer satisfaction.
c.	Knowing how to score goals: Establishing performance indicators to ensure that front line employees are delivering on the businesses critical processes. Enables employees to see how operational processes affect financial results. Links business strategy with day to day activities.
d.	Establish and maintain a method for tracking metrics. – Ensure that high performance is not only encouraged but rewarded. Ensures the creation of a high performance culture.

STEP 9:

Continuous Improvement: This stage demonstrates how to improve daily communication and enhance the effectiveness of contact between inter Company departments.