Archive for the ‘CFO’ Category
12/31/2009 | 8:15AM
Based on total number of unique visitors to each of our blog posts through the year, here are our top ten blog posts of 2009. Enjoy!
1. TOP TEN 2010 TRENDS FOR ENTREPRENEURS - We received a lot of very positive feedback on this blog post as well as a radio interview request. Listen to Ken Kaufman’s radio interview HERE.
2. CFOs ON TWITTER - This blog post was updated throughout the year as we met more CFOs on Twitter. Yes, there are some CFOs that have not only engaged in social media, but who are also pretty good at it.
3. STAFFING THE ACCOUNTING/FINANCE DEPARTMENT IN START-UPS - This post offers insight into how a start-up should scale into its accounting/finance department.
4. I CANNOT PREDICT THE FUTURE – BUDGETING IS WORTHLESS! - Predicting the future is actually easier than most think, and what you learn in the process makes the whole experience invaluable.
5. WORKING CAPITAL – LESS IS OFTEN MORE - A different twist on cash flow management and liquidity improvement techniques.
6. KEY BUSINESS METRICS EVERY ENTREPRENEUR MUST KNOW - Dashboards and business intelligence are becoming more critical for entrepreneurs. Here is a roadmap for how to get started.
7. HOW TO SPEND $195 INSTEAD OF $30,000 TO FILL A NEED - We received a lot of personal attention to this blog post – This gives us some insight into one business lesson learned from a family vacation.
8. THE PROBLEM IS… - Be a problem solver, not just a problem finder.
9. 3 REASONS YOUR QUICKBOOKS STATEMENT OF CASH FLOW IS WRONG - Some technical information, but very necessary to understand if you are using QuickBooks.
10. DOES TOO MUCH CAPITAL & SUCCESS TOO EARLY HURT START-UPS? - Interesting thoughts on what each business learns in its early bootstrapping days!
All the best for a prosperous 2010!
12/7/2009 | 2:49PM
When beginning a new company or project there are things we can control and other things out of our control. The way we manage our company is within our control. Market response, in most situations, cannot be controlled. Consumer satisfaction and sentiment simply is what it is. Once we recognize what can be controlled vs. what cannot be controlled a business owner can begin to appreciate the importance of effectively managing his or her business. The importance of good management was first impressed upon me during my schooling at the University of Utah. The professor teaching entrepreneurship (Ralph Little, a successful entrepreneur of many businesses) stressed that good management was by far the most critical of the three elements to a successful businesses—the other two being good ideas and money. He argued ideas were “a dime a dozen,” and that an hour rarely went by that he didn’t think of another great business idea. He further argued that money (investment capital) follows good management; condensing the key ingredients to a successful new business as a good idea paired with good management.
Consider the well-documented battle between Microsoft and Apple: Although Apple had the better product, it has held only a 2 – 4% share of the personal home computers market, while Microsoft (in conjunction with IBM) has held well over 95% since the 90′;, and has only just recently announced it had captured 8.8% of the market. I would argue that although Microsoft produces an inferior product, it has continually beaten Apple by effectively managing its business.
Good management does not always include hiring full-time staff that require large annual salaries and benefits. Many business owners have discovered they can have great talent to meet their managing needs, but not have to pay entire salaries by outsourcing certain managing needs. Hiring a part-time CFO is a key management position that often does not require a full-time commitment by the company. A part-time CFO helps fill the needs of a growing company by helping lay a solid foundation for growth and can be a great asset to any management team. Regardless of how management is filled it is important to recognize that in many cases good management can be the difference in making a successful business.
09/21/2009 | 7:00AM
The role of part-time CFO is more common than ever, and it appears the CFO services industry is poised for a lot more growth. Why? Most start-up, emerging, and medium-sized companies have a need that is uniquely filled by seasoned finance executives who work for multiple companies concurrently. The services are affordable and the value added is both tangible and significant. With this in mind, I wanted to mention the three main mistakes companies make when they consider hiring a part time CFO.
WAITING TOO LONG
The right time to hire a CFO consultant is a function of three variables: complexity, steepness of growth/shrinkage curve, and size. When it comes to complexity, every business reaches a point where no one person, even the founder or CEO, can keep all of the details of the business in their head. This requires the development of systems and infrastructure to empower the leaders and mangers of the company to make the right decisions. A qualified CFO has dealt with much more complexity in their career, and building these reporting and tracking systems and helping management make the right decisions should come as naturally to them as riding a bike.
A small and stable business will often survive without a CFO. The challenge with this premise is that most businesses do not want to remain small and, in our competitive economy, business stability is almost extinct. Rapid growth requires an overwhelming amount of time and resources. When a company I worked for unexpectedly grew from $30 million to almost $50 million in annual sales in just twelve months, we effectively outgrew every process and system designed to organize the business efficiently and profitably. We had to break almost everything and then re-build it to scale. This is also true of companies that are shrinking and downsizing. These companies often hang on to too many systems and too much overhead for too long, which can ultimately bury them. An experienced CFO will be a key resource to help any organization succeed through the volatile cycles of business.
What size should a company be to begin considering adding an outsourced CFO to their team? Any company at or approaching $1 million in annual sales should be thinking about it. In addition, start-up and pre-revenue companies can often significantly benefit from the assistance of a senior-level executive.
If you wait too long to hire a part-time CFO, your costs and frustrations will be greater than adding this critical player to your team at the right time.
LACK OF EXECUTIVE VOICE AND INFLUENCE
Let’s be clear about who should fill the part-time CFO job. This person should have formal education (with graduate education and/or professional certifications preferred), more than a decade of hands-on senior-level executive experience, and have access to tools, resources, and networks that the existing management team does not have. The decision to bring a qualified person on board should be coupled with a commitment to empower that individual to add as much value to the company as possible. They should be included in all major business decisions and they should be sharing thoughts and advice regularly on how to improve the company as a whole.
A monthly meeting with all of the leaders/executives of the company is often one of the best places to accomplish this. The part-time CFO should present the company’s financial statements at this meeting, which always leads to strategic discussions on how to improve the company.
SHORT-TERM RELATIONSHIP ONLY
When a new employee begins their job, research says that their most unproductive time will be during their first three months. Their value contribution increases with each day of on-the-job training and experience. Hiring a part-time CFO is no different. Once they learn the business and build the relationships needed to effect change they become increasingly valuable to the company. Hiring a part-time CFO on a temporary basis will have “flash-in-the-pan” results – it will look impressive and even make some loud noise, but it will most likely not have a long-term impact on the business. In almost all instances a permanent part-time CFO will create the most sustainable value for the business.
CONCLUSION
Can accounting and finance really add strategic value to the business, or do these functions play solely a role of compliance? With a permanent part-time CFO, many business owners are experiencing a decrease in anxiety and an increase in success.
07/6/2009 | 2:13AM
Utah CEO Magazine quotes Ken Kaufman in article: “Chief Financial Officer for Hire”.
PLEASANT GROVE, Utah, July 6, 2009 - CFO WISE Founder & CEO, Ken Kaufman, was quoted several times in a recent article published in the Utah CEO Magazine by Steve Gooch on the topic of how and when to hire a CFO.
CFOwise founder Ken Kaufman commented on this additional exposure by stating the following, “The Utah CEO Magazine is a great resource for CEO’s operating in the Utah area. The information provided in this article is not only informative to what we do at CFOwise, but also instrumental in introducing the business world to our industry.”
This article in particular provides Owners and CEO’s the information that they need in order to effectively make a decision when it comes time to decide between a part-time CFO or hiring a full-time CFO. Ken Kaufman had the following to say within the article:
“The philosophy that we work under is that every business needs a CFO, but with the concept of independent CFOs, they should all be able to afford one on an outsourced, use-exactly-what-you-need basis. Usually a company doesn’t need a CFO on a full-time basis until they hit a certain level of sales and complexity.”
About CFOwise
With over a century of senior-level executive experience, CFOwise is the premier provider of permanent part-time CFO services to start-up, emerging, and medium-sized companies in the United States. For more information, please visit: www.cfowise.com or contact Kim Waldron at 801-380-5615.
About Utah CEO Magazine
The Utah CEO Magazine can be summarized in their Editorial Philosophy, “Robust business is good for everyone, and creating that environment starts with our readers – Utah’s business elite. Our purpose is to provide information to help those business leaders navigate through challenges and seize opportunities. By consistently offering superior content, Utah CEO supports the immediate goals of Utah’s businesses while encouraging forward thinking to sustain the momentum. Outstanding ideas are at the core of a viable business culture, and Utah CEO keeps an ear to the ground for those outstanding ideas.” The content in Utah CEO is designed to serve a business purpose first, not just entertain. For more information please visit: www.UtahCEOmagazine.com .
06/1/2009 | 5:37PM
Jeffrey Ishmael is a cutting-edge and successful CFO in his own right. Here is a very intriguing blog post from him as he reviews a the book “Reinventing the CFO.” I especially appreciated the list of 7 core responsibilities of the CFO. Read his blog post, and the rest of his blog for that matter, HERE.
If an organization needs to hire a CFO or create a CFO position, we highly recommend the inclusion of these reposibilities in the CFO job description.
04/17/2009 | 2:28AM
The following results of a survey conducted by Grant Thornton validate what every business needs – a weekly report that highlights the most important ratios and metrics in the company. GRANT THORNTON SURVEY RESULTS
Part-time CFO’s Agree on Need for KPI’s
03/9/2009 | 3:31AM
Here is a nice introductory article discussing some of the ways an outsourced, or part-time CFO can help start-up, emerging, and medium-sized companies.
Outsource CFO Article
03/6/2009 | 3:33AM
What makes a great Chief Financial Officer? How can a CEO know if they are getting everything they should from their Part-Time CFO? These ten attributes are a big part of what you would find common with every CFO who adds great value to their company, staff, and community. For the sake of simplicity, I will assume the CFO is male. Please do not mistake my choice of gender with ones ability to be a great CFO. I know many women that fill this role effectively and successfully!
1. A decade or more of senior-level experience – he needs to have been around the block a little bit as an executive, and other C-level roles are helpful (COO, CEO, etc). He has done significant debt and equity financing transactions as well as guided successful entries and exits for shareholders.
2. Both breadth and depth of knowledge and experience -While industry knowledge is valuable, a big part of a his ability to add value to your firm will be his experiences in and around a multiple of industries. He will possess the unique ability to understand and lead several, if not all, of the disciplines of the company with great focus and precision. He needs to have significant experience helping companies obtain clarity, maximize cash, improve profits, and optimize their resources from a multi-disciplinary perspective.
3. Honest, ethical, and personification of integrity – These values cannot be understated. The CFO works in a world that few outside of it understand. If he abuses that in any way, then he jeopardizes too much. He needs to be a person you look to who will always “shoot-straight.”
4. People person, not just a number-cruncher – His people need to like him and trust him, and he needs to inspire everyone around him. Some accountants and professionals do not enjoy working with a lot of people and collaborating for success. These types will never be successful CFOs.
5. Strategist and Visionary -He is always thinking ahead. Reporting on the past is an important function he oversees, but his value will come from his foresight and ability to strategically guide the company as a whole, not as individual parts.
6. Relationships with the investment and banking communities – He should know them, and they should know him. His reputation should precede him. He should be able to open new doors of opportunity and new schools of thought to his company in this area.
7. Open to new opportunities; flexible -If he always says no before hearing you out, then he will never succeed as the CFO. In the broad and deep context of all of his experience and strategy for the company, he should be able to filter through opportunities and help the company implement the ones that best position the company to achieve its objectives and improve its competitive advantages in the market.3
8. Continual quest to learn and stay ahead - The worlds of finance, accounting, tax, and business are dynamic and always changing. Ask him what the last business book he read was and what he gained from it. If it was “The Goal” ten years ago, then he may not be on the cutting-edge of where the company and his area of responsibility need to go.
9. Diplomatic and persuasive – The CFO holds all of the confidential and valuable information to the business model and plans for growth. He needs to carefully and professionally work with others around him without being abrasive but using persuasive communication to engender buy-in and loyalty. These are sometimes rare traits, but a great CFO needs them desperately.
10. CEO’s most trusted advisor; powerful resource to the board – Before the CEO moves on any critical decision, he should be in the CFOs office to discuss it. The CFO should offer advice and direction to help the CEO make sound and effective decisions in the leadership of the firm. If the CEO and the board of directors avoid the CFO, then he will not last very long.
Please feel free to add your comments and suggestions of why these may or may not be crititcal as well as any other attrributes you think I left off the list.
RESOURCES
The New Road to CFO>
Defining the Superstar CFO
What Makes a Great CFO?
Selection of Chief Financial Officer
03/4/2009 | 3:34AM
I have met some great CFOs on Twitter. Some are full-time with one company, and others are consulting or part-time CFOs for small and medium-sized businesses. Here is the list of who I have met so far. Please feel free to let me know who I have missed. Thanks.
@BradLJones – Partner with CFOwise, the premier CFO firm for start-up, emerging, and medium-sized businesses
@RickGallagher - Part-time CFO, Board member for several non-profits
@startupcfo - Helps fund, grow and sell tech startups. Currently CFO at Tungle (5th VC-backed company). Also, he has a great social network you should visit called Your Startup CFO
@virtualcfo - A CPA and entrepreneur who has always had one foot in tech.
@wongrichard – CFO advisor ethically driven to improving profitability through better decisions by designing KPI’s & by developing better business processes and financing.
@corpfincafe – CorpFin Advisors, LLC. Driven by increasing corporate performance w/ L/T sustainable initiatives. Focus areas include Manfctrng, Retail, & Apparel.
@LynnKehler - President and CEO of Westone Laboratories. Vistage CEO group member.
@Philanthropic – David Chamberlain Founder ∞ Exquisite Safaris Philanthropic Travel ∞
@CFOwise (Ken Kaufman) - Founder & CEO at CFOwise
@CFOCIO – I am the CFO/CIO of LaBreche; a brand communications firm. My Passions: Finance, Tech, Interactive and Social Media.
@JDavids – Internet Industry Veteran since 1995 as CEO, COO and CFO
@clintburdett – Pro bono CFO of a 501-C-3, the San Diego Lions Welfare Foundation with $5.5m in corpus. Strategy Formulation Consultant – Senior Executive Coach.
@johnmccarthy – Consultant providing restructuring and interim CFO/COO/CEO services, currently at Etsy, husband, papa, not necessarily in that order.
@sarunasr – financial officer at aviation co., M&A, windsurfer, karateka (goju), golf newbie, social media fan, born in Lithuania
@greggwitt – Performing financial consulting for small businesses and startups. Formerly titled “CFO”.
@jemoore – Forensic and Managerial Accountant
@CFOServices – Founder of CFO Services, which provides corporate finance and private equity services to a diverse client base, incl. outdoor industry and inv. banking
@Biznibber – Part Time CFO for Nibipedia and other startups.
@jbarbar – CFO
@RogueCFO – Maverick Startup Consultant & Rogue CFO
@Lanekirir – Wahoo Studios/NinjaBee Financial Exec
@jmcclunn - Enterprise 2.0 CFO at SelectMinds, previous success with tech company from napkin to NASDAQ. Board member of several tech start ups.
@YourOwnCFO – Connect Your Ideas to an Improved Bottom Line..Your own Part-time CFO at a Fraction of the Cost!
@msfackrell – Virtual CFO
@TomDrainville - Providing part-time CFO services to business owners and CEOs.
@BaltimoreCFO – All your CFO needs.
@OnlineCFO – Experienced Financial Exec available part time or on a project basis
@Twithusiast – CFO
@Paulnisbet – Avid flyfisherman, rookie golfer, love UM Grizzly and Steeler football, and my girlfriend too- not in that order! CFO at Vann’s, Inc.
@BenParamore – A forward–thinking, strategic financial leader with an operations perspective and strong relationship–building capabilities driving value creation.
@CFO_NOW - I am passionate about building affordable, world class finance and accounting functions for smaller companies.
@The Social CFO – Are you a social media active CFO or aspiring CFO? Follow to collaborate, learn and share the power of social media networks in finance, accounting and treasury
@BusinessEase – Accountant and business adviser specialising in helping owner operators to get an easier life!
@finstoryteller – I help organizations tell their story through numbers
@CFOAlexSink – Official Twitter Account for Florida CFO Alex Sink – Maintained by the Press Office.
@martykoenig - Former corporate business leader, now entrepreneur, CEO, CFO and CXO, business growth expert, technology guru, blogger, social media coach, and geek.
@mikehartCXO – C-Suite executive, Board Member, public/private, growth, biotech, tech, SEC/IPO experience, outdoor enthusiast, sports fan, basketball coach, Kauai fan
@SmallBizCPA – A CPA specializing in Virtual CFO, Accounting, Tax Planning & Accounting Services for Start-Ups and Small Businesses.
@rpototsky – CPA, CFO, Consultant
@FrankMullens - Marketing Innovations’ CFO / COO where I encourage the persistent evolution of corporate strategy to seize market opportunities and grow profits. What’s next?
@skenney1384 – CFO of Nuwell Companies (Medical Services)
@MikeCampbellCPA – Mike Campbell is a husband, father, CPA and CFO of a fast-growth small business. I love running, reading, and blogging..
@kenjikuramoto – Recovering CPA, Co-Founder of AcuityCFO, Wake Forest Grad, advocate of all things entrepreneurial
@NorwoodDavis – Husband, Dad, Harley Rider, Scout Leader & CFO at 12Stone
@HospitalityCFO – Libre Management CFO;concepts include Cuba Libre Restaurant & Rum Bar, 32 Degrees, Vino Noir, Max and Me Catering
@Amit_CFO – Irreverent Technology CFO of Firescope – revolutionary software provider of BSM, ITiL, and CMDB- enjoys building people who build great companies…
@Judwhidden – Part Time CFO/Controller working with small companies. MBA, Certified QuickBooks ProAdvisor.
Here are some folks that aren’t CFOs, but they are a big part of the CFO industry:
@thomsinger – business author/speaker and business development director at vcfo
@cfocoach – Personal Brand Strategist and Career Coach for CFOs who want to Repackage … Position …
Please leave me a comment of additional CFOs on Twitter we should add to the list. We are continually adding names as we find more.
02/16/2009 | 3:52AM
Terry Weaver, CEO of Chief Executive Boards, writes a great blog post with powerful examples of how a good Chief Financial Officer (CFO) or Part-Time CFO can add value to a company. Here is the link: How Much is Not Having a CFO Costing You?
01/14/2009 | 9:26PM
Great article on my industry. It’s always nice to be validated by the traditional media.
Please contact me if you have any questions about if your company is ready for a part-time CFO. Thanks.
04/25/2008 | 4:34AM
We are excited to share with you our informational video for CFO Consultants interested in the career opportunities with our firm. Feel free to visit our CFO Career Center.
For more information: http://www.youtube.com/v/7dhdH9GtHdY
03/25/2008 | 12:54PM
Just like every other profession, there are some CPAs and tax professionals that are very good, and there are some that are not. Unfortunately, a professional designation does not guarantee perfection. If you hire an outside professional to do your corporate and personal taxes, it is still ultimately your responsibility to look them over and ensure they represent the truth. That is why you must put the final signature on the document. No one expects you to know everything about taxes, but you should feel comfortable that all of the material items are represented. Perhaps a second opinion is not completely out of the question.
We have found that the very best way to create a successful relationship with your CPA is to become their favorite customer. You do this by getting them your information before the busy tax season. It also helps to get them accurate information so their time can be productively spent on your tax situation rather than on the day-to-day accounting taking place in your business. Also, you should never let the month of November end without at least a 1-hour meeting with your tax CPA. They are very proficient at helping you reduce your tax liability as long as there is still a little bit of time before the end of the year. They also usually enjoy this opportunity to receive an update on your situation and offer advice.
If you do your own corporate and personal taxes, then you are very brave. The tax code gets more complex every year, and it is very difficult to stay abreast of all of the relevant changes and how they impact you and your business. We recommend that a professional who is trained and stays current with the tax code be involved in the preparation of your return(s). The amount of additional savings they identify or the potential risk they remove from your filings is usually several times more than the cost associated with their services.
Some entrepreneurs ask their part-time CFO or other staff to complete the company’s tax return. For the same reason mentioned above, it is often more prudent to use a tax expert who is current with the ever-changing tax code to keep the company and the owners in compliance.
03/24/2008 | 12:52PM
The role of the Chief Financial Officer (CFO) has changed drastically in the last decade. The pressures and responsibilities inherent to this position in an organization have increased dramatically. This only compounds the following realities of CFO positions: CFO job tenure is on the decline, and the time it takes to find new CFO employment has become much longer. For talented professionals who serve in this capacity, this situaiton can be frustrating and overwhelming.
We believe we offer a fresh perspective and an exciting opportunity to professionals in the CFO career path.
