CFO Services
Today’s highly competitive markets make sound financial management a vital ingredient in the success of any business. Sound financial management can often mean the difference between expansion and implosion.
At Key Consulting, Inc. we have developed an ongoing niche providing part-time CFO services to our small business clients. We help to develop financial controls, draft financial plans, develop client’s financial skills, and improve working capital management.
Developing Financial Controls
Rather than wait for an annual tax return, we encourage clients to take an active role in monitoring the performance of their businesses. We help clients:
- Standardize Financial Reports
- Compile Critical Financial Data
- Implement Budgeting and Financial Goal Planning
- Improve the Data Flow to Lenders and Tax Advisors
Drafting A Formal Financial Plan
As a business grows, the need to develop specific financial and operating targets grows as well. By incorporating goals and expectations into a formal financial plan, an organization can establish accountability and a clear sense of direction.
Working with management, we help develop and implement a formal financial plan. Using historical and projected data, a plan is developed to help clients:
- Understand the Process of Creating Value
- Recognize Financial Constraints
- Anticipate Capital Spending Needs
- Understand Financial Leverage
- Prepare for Economic Downturn
- Better Understand Cash Flow
- Examine Expansion Opportunities
- Understand the Role of Working Capital
Understanding and Enhancing Cash Flow
Record profits leading to cash shortfalls? One of the most difficult concepts for small business owners to grasp is the difference between cash flow and profit. During periods of rapid expansion, small businesses often lurch from large cash balances to cash shortfalls and bank overdrafts.
At Key Consulting, Inc. we believe that cash flow is the most critical concept in financial management. We work diligently with clients to help them both understand and enhance their total cash flow. We help clients:
- Understand the Nature and Derivation of Cash Flow
- Develop Detailed Cash Flow Forecasts
- Understand Bank Financing
- Understand the Role of Working Capital in Cash Flow Management
- Implement Cash Flow Enhancing Policies and Procedures
- Understand the Role of Capital Expenditures in Cash Flow Management
Improving Working Capital Management
Often times, the largest single component of any client’s asset base is the investment in net working capital. For many small businesses, working capital management represents not only the greatest problems, but the greatest opportunities as well. We help clients:
- Understand the Importance of Effective Working Capital Management
- Develop Detailed Working Capital Targets
- Learn and Understand the Cash Conversion Cycle
- Understand the Relationship Between Working Capital Management and Cash Flow
- Address Problem Areas Such as Accounts Receivable and Inventory
- Effectively Manage Cash Balances
Developing Financial Skills in an Organization
Whether an owner or key employee, a clear understanding of financial management is a tool any individual can put to effective use. Too often, individual employees are unaware of the effect their decisions have on a businesses overall success.
Key Consulting, Inc. can develop specific outlines based upon the area of employment, position within the organization, or future job assignment. Though the process may vary based upon individual needs, topics will likely include:
- An Introduction to Financial Statements
- Working Capital Management
- Understanding Cash Flow and Cash Flow Needs
- Financial and Ratio Analysis
- Understanding the Costs of Production
- Leverage and Borrowing
- Understanding Rate of Return
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