Posted 07.21.2010

Battle of the financial guys

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8. Processes and Systems
Design, implement and maintain accounting processes and procedures. Processes, whether documented or not, exist in all businesses. It is the way staff perform the work necessary to produce products or services. In most small businesses, the underlying processes to accomplish the work are rarely documented or reviewed as a whole (i.e. system).

Developing efficient and effective systems and processes generally reduce costs and/or improve productivity. In businesses where there is a planned exit or merger or sale of the company, documented processes are critical so the buyer gets more value from the company, and the investor/buyer does not have to these things themselves.

This goes beyond just the financial area of the company to operations, sales, marketing, technology, HR and all areas of the company. The more these process areas are fully documented, the higher the value of the company.

9. Internal Controls
Structure, work and authority flows. Theft avoidance, cash tracking, accounting processes that limit access. Internal control procedures reduce process variation, leading to more predictable outcomes. Focus is on effectiveness and efficiency of operations, reliability of financial reporting, and compliance with laws and regulations.

10. Strategic Planning
As a company grows towards an exit/liquidation event, a strategic planning process is essential. This is not as much a document, but more an ongoing process to analyze and describe the strategic goals and tactical implementation. Parts of the strategic plan include SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis, ideal customer profile, competitive analysis, short and long-term action plans. The CFO guides the business through the preparation for an exit strategy in order to maximize enterprise value.

11. Corporate Credit and Collection
Establish and improve corporate credit standing. Separate personal from business credit reporting so the company's credit stands on its own following the seven steps to success in developing business credit http://keithmcaslan.wordpress.com/2010/03/16/establishing-business-credit-the-seven-steps-to-success

12. Audits
Oversee external accounting and other audits as required.

13. Information Systems
Oversee the continued improvement of internal operations for information systems. Well documented IT systems, software and hardware asset tracking are key factors when a buyer completes IT MOA due diligence for to a company that wants to be sold.  

14. Financing
Direct the business in the development of an effective capital structure by securing debt financing at attractive terms, managing the lender relationships and ensuring compliance to the debt terms.

Controller/Accountant/Bookkeeper Responsibilities:

1. Main Responsibilities
The main responsibilities of the Controller/Accountant/Bookkeeper are to maintain and operate the books and records of the business. Prepare, control, balance and check various accounts using standard bookkeeping methods. Enter daily/weekly/monthly financial transactions in QuickBooks or other accounting software. Maintain general ledgers recording the status of various accounts and make sure that all the accounts balance. Prepare financial statements. Verify the accuracy of computerized accounting and record-keeping systems.

Accounts Payable
Accounts Receivable
Bill Payment
Payroll and Check Registers
Bank Reconciliation
Financial Statements
Customized Reports
Payroll Services
Payroll Check Writing
Payroll Tax Returns
Monthly, Quarterly, and Annual Payroll Reports
Federal, State and Local Tax Reports and Filings
Accurate and Timely Data Entry
Tracking Inventory
Available for phone call questions
Validate trial balances
Invoice Matching
Interface with vendors as needed

2. Standard Operating Procedures (SOP)
Under the guidance of the CFO, document the accounting and bookkeeping standard operating procedures manual. Help the CFO create the full accounting process documentation, review for improvements, and update the process to increase streamlined accounting/bookkeeping processes.

3. Compliance
Maintain best practices accounting and bookkeeping in compliance with General Accepted Accounting Principals (GAAP).

There is a significant strategic and tactical difference between the value a CFO brings to the executive leadership of a business and Controller, Accountant or Bookkeeper. The key is for the CEO/business owner/entrepreneur to schedule an initial meeting with a CFO, access the business need, and determine an action plan to drive the business to the next level of sales and profit.

As mentioned in the introduction, most small businesses cannot afford a full time CFO, so a part time or virtual CFO is the ideal arrangement. The key is finding a CFO with experience that can be the Trusted Advisor to the CEO/business owner/entrepreneur and provide financial, operational and business insights.

Keith McAslan is a Partner with CxO To Go a national professional services company headquartered in Denver that provides on-demand C-Level expertise and best practices to client companies on a part time, flexible and affordable basis. Please contact Keith at 303-520-2493, www.cxotogo.com, or kmcaslan@CxOToGo.com to discuss your business needs.

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