Top Rated NJ CFO Services
solving the most complex Business challenges for Over 20 Years
Highly Personalized NJ/NY CFO Services
How can we help improve your business?
Processes & Systems
I need to evaluate my internal process and systems to make improvements.
Goals and Strategy
I want to grow my business but I need a strategy that aligns with my goal(s).
Cash Management
I am having cash-flow problems or need an analysis to improve my cash position.
Business Profit & Loss
I want to formalize my business profit & loss strategy to improve profitability.
Business Exit Strategy (M&A Strategy)
I am looking to sell my business, participate in a merger and acquisition, or need a formal plan for the future.
Business Financing
I need help procuring a line of credit, property loan, equipment financing, or term loan to continue growing my business.
Internal Controls, Processes, and Systems
Are you at a point where payroll, bookkeeping, taxes, and legal issues are getting more complex?
Internal controls, processes and systems are the pillars that underpin the complete organizational structure and act as guard rails to protect it from going off road. Quite often, these get outdated overtime or become inadequate due to business growth. Hence, they have to be constantly monitored, evaluated and re-calibrated to fit the current business needs.
- Finance Function
- Internal Control Assessments
- Internal Systems Analysis
- Corporate Governance
- Tax Planning Systems
- Support Functions
- Banking and Treasury Management
Finance Function
We review the finance function in light of business revenue, income, average sale, complexity, IT systems etc. to determine the optimal staffing levels. We assess their technical skill levels, quality of work, productivity, and help build strength where necessary. After all, the whole decision making rests on accurate & timely financial information.
Internal Control Assessment
A small to mid-size company can have several thousand transactions per accounting period. It is impractical to verify every single transaction. However, strong internal controls assure that business is functioning efficiently and without undue risk. We determine if the company has strong internal controls, are effective and consistently followed. This is an ongoing exercise to cope with changing business dynamics.
Internal Systems Analysis
A company’s internal systems (ERP system, inventory management system, CRM, order entry system, etc.) are similar to an engine in a vehicle. They make the business run. Without modern technology, business performance may start to decline or pose functional challenges. We conduct system analysis and make recommendations for improvement, if necessary.
Corporate Governance
We become your trusted advisors and help you in legal, compliance & risk management areas. All legal agreements and contracts need to be reviewed internally and by corporate counsel. All tax returns, business filings need to be accurate and timely. All types of risks (financial risk, strategic risk, reputation risk, liability risk, business interruption risk and security risk) should be proactively managed to prevent any intentional or accidental damage to the business. Although this may appear common sense, things fall through cracks exposing businesses to unwanted risk. We help you remain ahead of the curve by proper guidance and reminders.
Tax Planning Systems
As it is said “tax deferred….is tax saved”, we always look at tax savings strategies that help improve business earnings. Federal and/or State tax laws keep changing and it is important to remain current and up to speed with them. For example, when COVID-19 pandemic hit, the Federal government granted PPP (Paycheck Protection Program) money to support businesses. Someone who did not avail this assistance would have missed on significant dollars.
Support Functions
Every business depending on its size has several departments. To function smoothly, each and every department should have well documented roles & responsibilities. Moreover, every department should work cohesively with other departments for the business to be successful. One department should consider another department as its customer and render highest level of service as if it were an external customer. We look at support functions cohesiveness and advise management if we see any breakdown.
Banking & Treasury Management
Most organizations are reliant on debt capital. With it comes the need for active treasury management and banking relationship management. Constant cash management is vital to ensure adequate liquidity for the business. Debt management involves keeping loan borrowings at correct levels to avoid unnecessary interest costs. We take an active role in these functions and can assist business owners to manage this critical banker relationship.
Goals & Strategy Development
Need help with budgets or a financial strategy to reach your goals faster?
Achieve your goals faster with a business strategy from a Top Rated NJ CFO. Every business needs a strategic planning process that includes budgeting, performance reviews, and forecasting.
What we provide:
- Goal-Based Measurable Targets
- Strategic Business Planning
- Strategy Execution
- Risk and Opportunity Analysis
- Business Finances Advisory
Goal Based Measurable Targets
Every company has its mission, vision, and values. Goal setting helps in getting the company where it wants to be over a period of time. Revenue growth targets, product portfolio expansion, geographic expansion, mergers & acquisitions (acquisition or divestiture), increase market share etc. are some of the examples of goal setting. As CFO advisors, we help to set short-term and long-term goals that are in sync with its mission and values. Goals need to be arduous yet achievable for the business to succeed and thrive.
Strategic Business Planning
Goals suggest where the business wants to be whereas strategy lays a path to the achievement of goals. Goals are tied to business vision and strategy is tied to goals. As trusted business advisors, we put a 5 step process into action:
(1) goals (2) situational analysis (3) SWOT analysis (4) objectives specification and (5) strategy formulation to help achieve business and earnings growth that maximizes shareholder value.
Strategy Execution
With goals and strategy in place, the next important step is execution. For successful execution, a strategy needs: systems and processes, leadership, skill set, resources, value belief, an evaluation process, and accountability. We work with the management to evaluate all requirements are in place prior to strategy execution. We address gaps where necessary and help execute the project.
Risk & Opportunity Analysis
As the business strategy undergoes execution phase, it is destined to have some risks or opportunities. Risks can emerge from internal (cash flow, skill-set, systems) to external (vendor disruption, calamity, regulation). Similarly, opportunities may present themselves along the way. As experienced business advisors, we help the management to overcome risks and capitalize on opportunities. Strategy development is important, however, more important is successful implementation because you want results.
Business Finances Advisory
Quite often, as the business owner or management is deeply immersed in some business growth initiative, the business gets side-tracked or overlooked. This opens the door to: inefficiencies, lost opportunities, cost escalation, balance sheet ballooning, and cash flow challenges. Any of these issues hurt the business and could even put the growth strategy in peril. As your trusted business partner, we work with you not only to ensure your business strategy implementation goes smooth but also the on-going business finances remain in perfect order.
helping businesses succeed with Specialized CFO Services
The Innovative 4-Step Success Plan
1. Discovery
Your new CFO will work with you to identify issues and/or areas of business improvement.
2. Strategy Development
Your Part Time CFO will help to develop strategy that aligns with your goals of business and profitability growth to maximize shareholder value.
3. Plan Development
Your CFO develops a sound business plan that helps to achieve goal(s). You will meet with your CFO throughout the year to evaluate how your business is performing. Constantly getting the data you need to pivot
4. Execution
Data driven tactical view of where your business is headed. Avoid costly mistakes before they happen, improve profitability, and properly scale your business.
When it comes to understanding how revenue impacts your business in detail, you need a Part Time CFO. A professional CFO can analyze key business metrics that impact your bottom line.
- Revenue Analysis
- Business Segments
- Revenue Channels
- Market Positioning & Strategy
- Customer Analytics
Revenue Analysis
Revenue stream to a business is synonymous as is oxygen to human life. Without revenue, there is no business. Revenue is driven by several factors: sale prospects, conversion rate, satisfied repeat customers, average order-size, and purchase frequency. A deep analysis of all revenue drivers is essential to fully understand the dynamics behind them. This not only helps to sustain but also prioritize methods that grow revenues.
Business Segments
It is important to analyze revenue and profitability by business segment because an under-performing segment may be over-shadowing a very profitable segment leading to an average overall company performance. We will investigate under-performing segment and recommend solutions for its revival.
Revenue Channels
Revenue stream for an entity can emerge from various channels: Retail, Wholesale, Third party channels (Amazon, eBay,) Chain stores, etc. The dynamics of each distribution channel is different and warrants a deeper dive into GP%, discounts and rebate levels, compliance levies, overhead expenses to ensure it is profitable and not a burden on total company earnings.
Market Positioning & Strategy
When entering a new market or launching a new product, a complete financial analysis is required to determine ideal options. To penetrate a new market, one may offer competitive pricing. To gain large volume with chain store, one may accept lower GP%. Yet in another case, one may accept private label business to add volume to factory output and spread factory overhead. Each case is unique and needs to be analyzed as individual and overall impact on company’s earning.
Customer Analytics
The customer mix varies within each company. There will be small to large accounts, very profitable to not so profitable accounts, prompt to slow paying accounts, high to low credit risk accounts, etc. Customer accounts need to be analyzed regularly to determine their contribution to profit, pricing and/or discount adjustments, terms and/or credit limit revisions. This helps overall company earnings, avoids bad debt exposure and improves cash flow.
Business Reports & Statements
Do you have the reports you need to make a decision?
Get reports and statements that tell you exactly how your business is doing today. Our professional Chief Financial Officer will review your current reports and provide insights into your operations.
- Income Statement Reports & Analysis
- Balance Sheets
- Statement of Cash Flows
- Budgeting
- Rolling Forecasts
- Key Performance Indicators (KPIs) & Metrics
Income Statement Reports & Analysis
An income statement is one of the three major financial statements that reports a company’s financial performance over a specific accounting period. We not only ensure this report is accurate, timely and consistent but also do various analytics surrounding it. Income statement components are compared against budget and last year performance to pinpoint any negative trends so that timely corrective actions are in place.
Balance Sheets
The term balance sheet refers to a financial statement that reports company’s assets, liabilities, and shareholder equity at a specific point in time. We evaluate this report very carefully not only to determine its accuracy but also minimize its ballooning due to inefficiencies such as past due AR or more than required inventory levels. Financial strength of a business is depicted via a strong balance sheet that every stakeholder would like to see. With strong fiscal disciplines, we help you build one over time.
Statement of Cash Flows
It is a statement that describes the cash flows into and out of the company. Often neglected in smaller businesses, it is a very insightful document that shows sources and uses of company funds. We will install this report if not already in place and keep management fully informed about current and future cash position. This helps in on-going business financing as well as funds availability for future expansion projects. Active cash management is essential for business survival.
Budgeting
Every business small or big, needs budgeting exercise. Budgets are two types – (a) Operating budget that outlines revenues, expenses and net income given business infrastructure and (b) Cash budget that details working capital levels, capital expenditure plans and business financing needs. Both budgets are essential for sound business management as they not only serve as planning document but also a controlling document when desired outcome is missing. We build these annual budgets after careful review of historical information, current economic conditions, future business plans, trends, seasonality, and non-recurring events. This helps to develop a robust business plan that is precise and aggressive yet achievable. It motivates the management to work hard as they have a plan to follow and deliver.
Rolling Forecasts
Business environment is fluid and dynamic. No one can predict future with precision. This brings in the need of rolling forecasts. Periodically, rolling forecasts are prepared with some actual performance data while projecting business performance for the remainder period(s) in light of changing business conditions. We put all the intelligence to prepare these rolling forecasts, highlight successes & failures and draw management’s attention to align resources to critical drivers so that desired outcomes are accomplished. These forecasts undergo sensitivity analysis as well to demonstrate how a change in driver(s) impact overall business performance with recommendations for corrective action, if needed.
Key Performance Indicators (KPIs) & Metrics
Have you ever seen your blood work report? Any abnormal test result is highlighted. KPI’s and metrics are condensed financial information in form of ratios, charts, trends that reveals if business performance is on its correct path. We not only design and implement KPI’s and metrics specific to your business but also educate you how to interpret and understand them. We also benchmark them against industry standard to see how your business stacks up against other units in the industry. It is a critical tool to quickly assess any negative trends that warrant immediate investigation and correction.
Cash Management & Analysis
Do you have cash flow problems? Are you aware of your current cash position?
Let an experienced Outsourced CFO handle identifying potential problems such as high fixed costs, payment terms, variable costs, supplier discounts, and more.
- Current & Projected Cash Position Analysis
- Cash Flow Reports
- Accounts Payable (A/P)
- Accounts Receivable (A/R)
- Inventory Management
- Cost Management
Current & Projected Cash Position Analysis
The most important aspect of the business yet neglected is active cash management. Quite often we have seen profitable businesses having difficulty in paying bills or commitments within terms. This is due to poor planning of cash in-flow and out-flow. We not only look at your current cash position but also conduct cash projections to ensure there is sufficient available cash to meet commitments. If our findings indicate the contrary, we seek ways to improve cash flow by (a) bleeding over-leveraged balance sheet (b) extend vendor terms and/or (c) explore external financing options. Cash is king, we help you get there.
Cash Flow Reports
There are several cash flow reports that help effectively manage the business. From a simple cash flow statement that explains movement of cash to complex several weeks out cash projections or annual cash budget, we not only institute these reports to better manage the business but also educate the owner/management to understand the importance and implications of these reports.
Accounts Payable (A/P)
A free infusion of cash into your business is trade credit that goes a long way if used prudently. Paying trade creditors in terms builds strong relationship that ensures uninterrupted supply chain of quality products. We devise various reports (DPO) & processes to highlight any adverse trends and prevent unwanted occurrences. In the event of a rough patch, we keep lines of communication open and work solutions to avoid any abrasion of trust.
Accounts Receivable (A/R)
A sale is not complete until cash is collected. We ensure our clients are not exposed to undue credit risk. We have several tools in our tool-box to identify and weed-out high credit risk customers. We install reports & procedures to properly screen accounts; measure DSO, monitor delinquency and take timely corrective action to avoid bad debt risk.
Tip: A $100 sale may only have $20 gross profit. If the account goes bad, it takes away your effort to sell $400 to other customers.
Inventory Management
Unless you are in service business, a big chunk of your balance sheet will be inventory. Inventory normally gets out of control causing several challenges such as (a) cash flow shortages (b) higher storage costs (c) obsolescence risk (d) opportunity cost – unable to recruit new products. We evaluate all above risks in strict discipline and take every step to circumvent them. Be it measuring stock turns, identify slow moving stocks, purchase order review, stock rotation to name a few, we will use every tool in our tool-kit to keep your business safe from such an occurrence.
Cost Management
Expense control is an integral part of sound cash management. Tip: One dollar saved is one dollar improvement in your cash flow. We look at your expense structure with a critical eye to determine no resources are wasted. Technology advancement enables us to evaluate which tasks can be fully automated or at least can be more technology driven that helps to (a) reduce costs (b) eliminates human error and (c) increases speed. Fully equipped with knowledge and expertise of technology advancements and Artificial Intelligence (AI), we can properly guide you with selection and implementation of ERP solutions, software, Apps etc. that will help to work smarter not harder.
Profit & Loss Strategy
Need help improving profitability or identifying opportunities?
Improve profitability with a tailored P&L strategy from an experienced NJ CFO. We have over 20 years of experience digging into the most complex business challenges to identify critical opportunities that impact business profitability.
- Profitability Enhancement
- Business Cost Analysis
- Pricing Model Reviews
- Gross Margin Analysis
- Break-Even Analysis
- Net Profit Reporting
Profitability Enhancement
Business profitability is dependent on various drivers: units sold, revenue level, gross profit percentage, business overhead, etc. In a dynamic business environment, these keep changing and need constant monitoring to align/adapt to changing business conditions, else profitability suffers. We identify areas that need corrective action and advise appropriate solutions.
Business Cost Analysis
Every business has a different set of costs: cost per unit (actual or standard), variable costs (move with volume), fixed overhead (remain flat over specific business range). We advise you how these costs (a) impact the business (b) interact with each other (c) affect business profitability and above all (d) how to control them. Unless business costs are actively managed, profit erosion is likely to happen. Our advisement will prevent profit deterioration.
Pricing Model Reviews
Businesses have multiple products in their portfolio. Some products may be price sensitive while others may be able to command premium pricing (brand, essential need or luxury). Yet other products may be lead generators to pull traffic. We do a deep dive into every category of product offering and suggest an optimal pricing and mix that enhances business profits and shareholder value. A pricing model good today will become ineffective after sometime as unit procurement costs tend to go up due to inflation.
Tip: Remember an incremental unit sold will only bring GP $$, however, a price increase will 100% flow to the bottom line.
Gross Margin Analysis
Every unit sold brings in either (a) contribution margin or (b) gross margin that helps to recover business costs and render net income for the business. We do in-depth analysis of gross margin by (a) product offering (b) customer base (c) market segment (d) geographic territories (e) market channels (f) chain stores etc. to determine the most suitable gross margin levels each category that will boost business net income. Ways to grow gross profit $$ and % is essential as cost recovery and business earnings is totally dependent on it. Continuous gross profit reviews are mandatory for business success.
Break-Even Analysis
In simple terms, a Break-Even (BE) position is no profit/no loss position. Every business needs to fully understand its BE point and its surrounding dynamics. There are several ways to lower BE point – increase unit price or lower fixed overhead or a combination of both. We research nature and behavior of each revenue and cost item to conduct exhaustive BE analysis and offer ideal solution for business betterment.
Net Profit Reporting
Net profit or income to business is like oxygen to a human body. Without it, survival is impossible. We acutely look at all profit drivers – revenue, gross profit $$ and %, payroll, marketing or overhead expenses to ensure there are no inefficiencies or wasteful spending that is stalling business and profit growth. Lack of decent net income can be a serious impediment for any business growth strategy and we help you overcome it.
Business Exit Strategy / Mergers & Acquisitions
Are you looking to sell your business, participate in a merger and acquisition, or need a formal plan for the future?
A business exit strategy is essential no matter what is the stage of the business. Over the years, you have put immense hard work to build the business. Sometimes, a significant portion of your wealth may be locked in the business until its sale. An unplanned sale of business can result in:
- Financial loss: A price lower than what the business deserves means you are leaving dollars on the table.
- Succession risk: You have emotional attachment to all aspects of the business – business continuity, customers, employees, vendors etc. and their well-being is important to you even post-sale.
- Transactional risk: A business sale undergoes multiple steps from getting mentally prepared to finally closing the sale. Any error along the way can lead to frustration, reputation risk and perhaps even litigation.
Evaluation
We evaluate your situation, guide and mentally prepare you by explaining pros and cons of transitioning from business ownership to employee or retirement.
Education
Education on various sale options – shares sale, asset sale, sell shares to public (IPO).
Books Preparation
We get your books in perfect order enabling precise and accurate business valuation.
Valuation Investigation
We investigate and research any positive EBITDA adjustments to elevate business valuation.
Prepare Data for Buyers
Set up VDR (Virtual Data Room) and post all company related data for potential buyers.
Assistance in Sale Process
The CFO assists in the whole sale process from due diligence, price negotiation, legal documentation, final closing to post-sale integration.
Mergers & Acquisitions
We can also help you in your business acquisition initiatives if that is your business growth strategy. From locating a target company, review and evaluate company data, determine business valuation, price negotiation, coordinate legal paperwork, closing the sale, and integration of businesses. We have seen it all…..done it all!
Are you losing growth opportunities due to lack of capital?
Business financing or loan procurement is extremely stressful. Yet without it, business growth is next to impossible. Lack of knowledge how lenders approve or decline a loan application makes it sound like a black box.
Having us, the experts, on your side will make the process easy and simple. Do you need a line of credit, real property loan, equipment financing or a term loan?
We have excellent relationships with Tier 1 banks and have helped raise millions of dollars of debt capital for our clients.
We put the loan application process through a rigorous 11 point vetting process.
business financing made easy
Our 11 Point Vetting Process
1. Determine Purpose
A CFO evaluates the purpose of the loan
2. Evaluate Capital Needed
CFO runs all the numbers with sensitivities and contingencies to precisely determine the needed capital.
3. Start Lender Search
CFO opens dialogue with lenders and selects suitable based on reputation, accessibility, services portfolio, industry comfort, lending money limits, underwriting and approval process (local vs. distant).
4. Prepare Business Case
CFO prepares business case to support your loan needs with complete analytics, sensitivities and all supporting documentation.
5. Gather Term Sheets
CFO obtains Term Sheet(s) from preferred lender(s).
6. Lender Detailed Evaluation
CFO evaluates term sheet(s) in view of terms & conditions, reps & warranties, covenant conditions, interest rates, closing costs, and conducts internal testing to ensure business can comply.
7. Negotiates Terms
CFO negotiates best terms and provides a formal go ahead with loan application.
8. Bank Examination
CFO facilitate bank field examination.
9. Legal Review
CFO reviews loan documentation with input from company attorneys.
10. Loan Closing
CFO collects, coordinates and furnishes all documentation required for loan closing.
11. Final Closing
Funds are released and administered according to the purpose of the loan.
We work with you during the entire process to make sure your goals are being met.
Your Business Needs a CFO, Hire a Part-time CFO Today.
Over 20 Years of Experience
Trusted by Top Companies
