Virtual CFO

Many big businesses have a full time Chief Financial Officer (CFO) whose role is to manage cash flow, secure funding, review monthly reports and oversee the strategic financial plans. They are the goto person who can make sense of the numbers for management and work with the executive team, helping to deliver the results and manage financial risk.  However, for most small to medium business owners this role is expensive and services may only be needed a few days per month.

Our Virtual CFO service can be tailored to your business needs, whether you have one business, 20 businesses or somewhere in between. You have access to a professional when you need them without the full-time costs. Typical services may cover;

  • Cash Flow Management
  • Finance Funding, Review and Reporting
  • Complex Financial Reporting for Groups and Multiple Businesses
  • Strategic Forecasting and Modelling
  • Acquisition and Exit Strategy
  • Financial Risk Management
  • Financial Modelling for New Ventures

Many small business owners would like to benefit from a dedicated financial professional who can add expertise and time to their business.

Case Study 1

Gary has a reasonable sized pharmacy and still has the same loan his broker arranged when he purchased the business. He has been approached by an established national pharmacy brand (New Brand) to join their group with a substantial refit bonus and he would need to raise the difference with a new bank loan.

The New Brand network manager has shown him some modelling that could see him increase his turnover by 20% and net profit by 10%, plus incentives. Gary is cautious because he has always lived by the motto ‘if it sounds too good to be true, then it probably is.’ However, Lucy, another pharmacist he went to college with had already joined New Brand and was very happy. Gary needs another opinion and contacts our team.

What We Did

Our Virtual CFO was able to review the model and discuss the New Brand proposal with reference to Gary’s business. After a review our recommendations were;

  • The revised model based on Gary’s figures was more like 10% increase in sales and a 3% increase in profit.
  • The restructure of existing facilities funded the refit and reduced interest and repayments.
  • Monthly reporting was changed to highlight progress towards 6 month brand incentive targets and a weekly dashboard to keep Gary and the team focused on sales targets, rebates and basket size in a 10 line weekly report.

Our services allowed Gary to change his business model and reduce time reading volumes of brand reports, using our summary from our Virtual CFO.

Case Study 2

Ed and Harriett have run a successful service business for 20 years. They have a great manager Toni and a loyal team. They keep on top of things daily and Ed handles all the accounting reporting and deals with the bank, while Harriett handles the customers. Recently Harriett has been stepping back to spend more time with their daughters and grand children. Toni is a great manager and brilliant with customers, but relies on Ed to translate the financials. Ed wants to step back too, but does not have the confidence in Toni’s financial skills. Ed and Harriett had dreams of a long cruise for their 30th wedding anniversary, but Ed was concerned about being away from the business for so long. They wanted to keep the business and enjoy travelling 6 months of the year. While networking at a business function one day he met one of our team who said they could help.

Solution

They have an existing accounting system on site, with a basic internet connection. After a discussion about their future goals, our Virtual CFO presented the following recommendations;

  • Upgrade of internet and security with remote access and video conferencing, linked to mobiles so Ed and Harriett are in touch.
  • Create a 2 year cash flow and services forecast for monthly reporting.
  • Virtual CFO to have monthly reporting meeting online with Toni to talk through the numbers and check progress to budgets and targets.
  • Virtual CFO to monitor cash flow weekly with advice to Toni on who to pay when.
  • Customised weekly dash board e-mail and monthly reporting that Ed and Harriett get wherever they are travelling.
  • Quarterly bank reporting and liaison with Tax accountant at year end.

Using our Virtual CFO service Ed and Harriett were able to keep control of their business while stepping back.