Chart of Accounts
Cash Flow Planning
Rolling Cash Forecast Tool
Financial Tools - Learn & Apply
Cash Flow Success Story – The $1 Million Dollar Improvement
A business owner/CEO was looking for an interim CFO and found my website. At a breakfast meeting he revealed he was experiencing a cash flow problem. In addition, he said he was dissatisfied with his current interim CFO because the projections were too complex.
I suggested that we build a simpler cash flow projection model customized to his needs and one that could easily be updated. I identified that the updating process that currently existed had too many formulas that led to too many errors. Those errors were not only expensive but they became troublesome to the owner because he didn’t know where his cash flow stood.
A 30 day interim CFO gig turned into an ongoing interim CFO assignment of 2 to 3 days per week. The owner’s cash flow tightness abated and under my involvement and direction we instituted a much improved cash flow and accounts receivable management system. Once the problems were resolved the CEO was able to focus on growing sales and was not burdened with cash flow worries.
End Result: Cash flow went from negative to positive in one year with a $1 million dollar improvement.
Interim CFO Guidance for a Fast Growth $10 Million Company – On Track To Double Sales
I was referred to a fast-growth INC 500 technology company with national service offerings. The company needed forward-looking financial projections, key performance indicators and line item costing but did not know how to build them.
Working with my cash flow tool, I customized a system to fit their circumstances.
They wanted a solid handle on Cash In and Cash Out. My approach was to launch a financial analysis of the past 3 years to develop inputs for designing the financial indicators and illustrating the financial trends. The 3 year financial history provided the framework for preparing forward-looking cash flow projections. It revealed where the low points in cash flow were surfacing so that the management can handle them. The President and owners are very excited about the future of their company and have a much better handle on understanding and working with their numbers.
End Result: The company is projecting a 30% increase in revenue from $10 million to $13 million within one year.
CEO with 25 Companies Learns How to Make Good Financial Decisions – Income increased $500,000 annually
A very successful CEO/owner invited me to breakfast and presented me with a pile of paper representing her last month’s financial statements. The CEO asked for my help in understanding what all of these numbers were saying. I designed an Executive Summary of key financial results for some 25 separate entities (25 separate companies owned by the executive) so that the owner could track at a glance, on a month-to-month basis, the Sales, Margins and Overhead together with key financial ratios. At our next breakfast, I explained to the owner what each summary and metric were saying about that particular small company. For the first time the owner finally understood how to interpret and use the numbers for decision making. This Summary became the focus at monthly management meetings and helped the CEO design performance-based compensation for the key managers.
End Result: Income increased $500,000 annually
Interim CFO Advice to Position Company for Outside Funding – Used Growth Track Expertise to Double Sales
A successful CEO/owner of a small company with $10 million in revenue needed help from an interim CFO to assure timely monthly closings and financial reporting to shareholders and lenders. The CEO also requested a complete and detailed historic summary of financial results for the past 10 years – to be used in obtaining funding for growth.
The CEO wanted to integrate the reporting into an annual update for his stakeholders. The historic information also enabled him to take a careful look at margins and cash flow. This helped him make better and more informed decisions for the future and find new ways to improve his financial results.
The vital financial information was gathered in a month-to-month and year-to-year worksheet analyses, which helped the CEO pinpoint where and when corrective action should be taken to maintain his cash flow goals.
Before my engagement, monthly reports were created on a standalone basis. I reorganized the data into an annual spreadsheet permitting period-by-period comparisons. Compiling the data in this manner afforded the CEO a more comprehensive and robust view of the company’s financial data.
The company did not have an acting CFO until our engagement. Following my involvement, the company hit its growth targets and was sold.
Over the next five years sales doubled from 10 million to 20 million
They Grew According to Plan and Got Financing to Fund the Growth
Another INC 500 CEO/owner needed help in determining if cash flow would be sufficient to fund his company’s fast growth. This interim assignment involved key managers putting together individual operating budgets under my direction. The result was a set of financial projections indicating the need for an increase in the bank line and key manager awareness of the importance of taking responsibility for planning their numbers and being accountable for results. This company remained on INC’s fastest growing list for 4 years. The key managers continued to use the financial planning templates to manage growth during this period.
Revenue went from $4 million annually to $8 million the next year, to $16 million the following year; and then to $24 million and $32 million in the next 2 years.