Articles Archives - The CFO Centre

Cashflow concerns: time to address the financial ‘elephant in the room’

Published: March 10, 2025 by lauramills

Even with strong sales or a large customer base, many businesses can still struggle with financial difficulties or cash flow concerns at any given time.

Cases range from minor cashflow hiccups (maybe a debtor hitting issues of their own or taking longer to pay than expected, or a production delay resulting from key component shortages) to serious cases of potential or actual insolvency.

This is where a part-time CFO can help you through and get back on track, by reacting fast and addressing the risks. At The CFO Centre, our CFOs become a profit-generating resource rather than a cost.

Our top tips and real-life client examples

We have helped many businesses who are at various stages of cashflow concerns.

Often, our CFOs quickly implement a few simple strategies, and cash flow improves.

If the issues are more serious, we will work with directors on the best course of action, and we have great relationships with many funders or licensed insolvency practitioners, who can come alongside us during this time.

Here’s what our CFOs have achieved for our clients recently:

We had a client that did not realise that they had 5 yearly subscriptions scattered across various payment options (company credit cards, direct debit, personal credit card that is then reimbursed). It was costing them just over $10,000 per year and they were not using the subscriptions or licenses to the full benefit. We cancelled two and reduced the number of licenses for the other three subscriptions, saving $6,000 p.a.

Another client heavily invested in Research & Development was missing out on valuable tax offsets. By streamlining their data collection and ensuring timely lodgement, we helped them claim significant tax benefits – often enough to cover the cost of their fractional CFO.

We often look at a clients existing creditors list to negotiate deferred payment plans, when necessary, plus work with existing debtors to bring in aged debtors.

We also look at ways to reduce overheads – such as rent and staff management. We can benchmark these percentages to track these expenses as a percentage of revenue.

These examples show how with the right financial oversight, businesses can unlock hidden savings and maximise returns.

The CFO role is critical in finding solutions for your cashflow concerns

The role of your CFO is to advise on the most effective course of action, not to assume the responsibilities of a director.

Our CFOs come with key analytical skills and the ability to review your company’s position objectively. This is hugely important because, when things are going wrong, management teams and/or directors can make emotional rather than rational decisions. Clear, unambiguous advice coming from your CFO, even when it is giving a difficult message, is invaluable.

Act now!

There is no point looking the other way if you have genuine cashflow concerns or debt worries.

It is always better to seek help with your debt, as the more informed you’ll be about your options and gain control of your situation.

The top 6 business challenges for a fractional CFO to solve

Published: August 29, 2024 by lauramills

Every business on the planet faces challenges. No matter the industry, the size of the business, or how good the management team are – there will always be challenges alongside the good times.

From staffing issues to operational glitches, and even your marketing plans, the challenges faced by business owners can really stifle growth and success, if not tackled correctly.

To really see what is challenging businesses right now, we took a deep dive into some of the data from our business survey.

In this blog post, we will explore the implications of these challenges and provide insights into the answers received

How a fractional CFO can help with the key challenges faced by companies today

Capacity/Operations/Systems

This is a common issue with many businesses, yet thankfully easy to fix with the right CFO resource in place.

Our data showed that 13% of respondents identified these areas as one of their key challenges.

This is because often businesses grow and are busy filling demand, but then there are inefficiencies and bottlenecks.

It’s vital that businesses continually evaluate their infrastructure and implement robust systems that can accommodate growth.

A fractional CFO can help you improve capacity by looking at your cash flow, and looking at whether you can access loans or grants.

Expansion

While expansion is an exciting milestone for so many businesses, expanding into new markets or scaling existing operations can be a daunting task, requiring careful planning and execution.

The 22% of respondents who identified expansion as a key challenge highlight the ambition and aspirations of many businesses and shows that companies should focus on developing a solid growth strategy, conducting thorough market research, and assessing potential risks to ensure successful expansion.

Management

Effective management is crucial for any organisation’s success, and 9% of respondents recognized this as a key challenge. Managing teams, aligning goals, and ensuring efficient communication are critical aspects of effective management. To overcome this challenge, companies should invest in leadership development programs, foster a positive work culture, and implement strong management practices to drive productivity and employee satisfaction.

Marketing

Marketing has never evolved at such a fast pace as now! The strategies that worked 10 years ago or even a year ago might not be effective today.

There are new channels of advertising being added almost every day with the rise of new social media platforms, streaming services, digital capabilities, and changes in the way we consume “traditional” media such as radio, print, and TV.

Yet effective marketing is critical to business success. Even word of mouth marketing or a strong repeat customer base needs to be nurtured in new and different ways.

The 15% of respondents who identified marketing as a challenge highlight the need for companies to continually adapt their marketing strategies to reach their target audience effectively.

By embracing old and new strategies, analysing data, and staying abreast of industry trends, businesses can overcome this challenge and drive growth.

Sales

Sales are the lifeblood of any organisation, and the 17% of respondents who recognised this as a key challenge emphasize its significance. Companies face various obstacles in closing deals, meeting targets, and retaining customers. This data underscores the importance of investing in sales training, developing strong customer relationships, and continuously refining sales strategies to enhance revenue generation.

Team/People

Businesses are only as strong as their teams, and the 15% of respondents who identified team/people as a key challenge recognise the importance of human capital.

Building and retaining a skilled workforce, fostering a collaborative environment, and addressing employee satisfaction are critical to overcoming this challenge. Companies should prioritize employee development, offer competitive compensation packages, and create an inclusive work culture to attract and retain top talent.

Ready to overcome your business challenges?

The insights gained from our business survey highlight the diverse range of challenges faced by businesses today.

Whether it’s optimizing operations, expanding into new markets, or strengthening marketing efforts, leaders must address these challenges strategically to achieve sustainable growth.

We encourage you to take our Scale-up & Exit Business Assessment™ to gain valuable insights into your own company’s challenges and develop actionable strategies to overcome them.

https://cfocentre-aus.scoreapp.com

Succession Plan or Exit Strategy?

Published: July 17, 2024 by lauramills

One common request we receive is from business owners seeking guidance on retiring from their business. They often face the dilemma of whether to sell the business or pass it on to the next generation.

Our CFOs provide in-depth analysis and strategic advice to help you make this critical decision. They assess the potential financial outcomes, evaluate the readiness of successors, and consider market conditions to recommend the best course of action.

With all that support and expertise at your fingertips, you will achieve better results, faster. It means you’ll have more confidence and clarity when it comes to decision-making.

Leaving a Legacy by Ensuring Business Continuity

Succession Plan or Exit Strategy?

Succession planning involves deciding who will lead your business in the future and who will take ownership of it. By proactively managing this process, you can attract a higher sale price for your business if selling is the path you want to travel – or leave the business in great shape for a succession route.

Exit planning is a comprehensive analysis of all the factors that impact a business owner.

You can also consider these options:

Transfer ownership to your children
Sell to management
Take your company public by listing on the stock market
Liquidate the assets and take the cash that is released

Passing the Baton: Crafting Your Exit Strategy

Our part-time in-house CFOs assist our SME clients in establishing a successful long-term exit or succession plan. Our experienced CFOs start by understanding the unique goals and challenges of your business. They work closely with you to identify the most suitable exit strategy, whether it’s selling the business, passing it on to the next generation, or another tailored solution. They bring a wealth of knowledge in financial planning, market analysis, and strategic development to craft a plan that maximises value and aligns with your personal and professional objectives.

Once the exit or succession plan is established, we reverse-engineer this plan to create a detailed roadmap and timeline of key objectives from now until the exit. This process involves breaking down the long-term goal into manageable milestones, ensuring that we address all critical aspects such as financial health, operational efficiency, and market positioning. We work with you to set clear short, medium, and long-term targets, providing regular check-ins and adjustments to keep the plan on track and adaptable to any changes in the business environment.

We don’t just consult and advise—we roll up our sleeves and help with implementation as part of your leadership team. This hands-on approach means our CFOs are actively involved in executing the strategy, from optimising financial operations to managing stakeholder relationships. We act as a true business partner and sounding board for the owner, CEO, or MD throughout the journey. Our goal is to ensure that every step is executed effectively, providing you with the support and expertise needed to achieve a smooth transition.

The Art of Succession

We help create a comprehensive plan that allows you to retire with confidence. This includes financial forecasting, tax planning, and risk management to ensure that your retirement is financially secure, and your legacy is preserved. Our CFOs work with you to address any concerns and ensure that the transition is as seamless as possible.

Please drop us a message to learn more about how we can assist you in creating a tailored succession plan, or call us on or call us on 1300 447 740 to speak to your local regional director.

Click here for more resources on exit planning as well as a useful checklist on how a CFO can help.

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With thanks to Elechia Jones, Regional Director in NNSW for her insights into this topic.

End of Financial Year is the Best Time to Build Business Resilience

Published: July 17, 2024 by lauramills

The Titanic was one of the best ships ever developed in the world.

There were no problems with that ship. It had the latest technology and was deemed “unsinkable”. The problem with the Titanic was that the captain ignored all the warnings, made hasty decisions, and hit an iceberg. A cautionary tale for all of us, especially when it comes to managing our businesses and finances.

Just like the Titanic’s captain, ignoring crucial data and making rash decisions can lead to disaster.

Entrepreneurs are inherently innovative and driven, but they often fall short in process and strategic planning.

As we have come to the end of another financial year, now is the time to plan ahead if you want to thrive this financial year and make next year’s financial reporting a breeze. Next June is simply too late—you can’t just copy and paste last year’s financial data and hope for the best.

Moving forward stronger through detailed planning

At The CFO Centre, and we see clients across all industries. We’re witnessing national growth as businesses emerge stronger with our help.

Many business owners can feel overwhelmed at this time of year, but now is the time to move forward with stronger processes and strategic planning, all with the help of a fractional CFO who understands your business and industry.

Process and Strategy: The Key to Success at EOFY

Small and medium-sized enterprises (SMEs) are the lifeblood of our economy. While the news may paint a bleak picture, it’s not all doom and gloom. Proactive CFOs can capitalise on their experience and innovation in financial reporting to give you the edge.

Why is this so important?

· Detailed budgeting and reporting are crucial for a clear snapshot of your business

Funders have noted that poor presentation of financial information can hinder a business’s ability to secure loans or favourable terms.

· Banks and other funders alike want detailed, accurate reports—information out of your head and onto paper. That’s where we come in. At The CFO Centre, we excel in creating P&L budgets, cash flow forecasts, and monthly reports, regardless of your business size. Data drives decisions, and accurate reporting is essential for shareholders, boards, and funders.

· Correct risk analysis helps to protect your business

Evaluating all obvious risks in your business ensures you have contingency plans for those with the highest likelihood and impact.

Business Planning Checklist

Because the end of financial year is the best time to build business resilience, here is a summary of our business planning checklist which our CFO’s will help you to work through:

1. Know Where You Stand

Ensure your financial reporting provides an accurate, timely view of your business performance, including:

· Historic balance sheet, profit and loss, and cash flow

· Key performance indicators (KPIs)

· Rolling forecast balance sheet, profit and loss, and cash flow

2. Analyse

Evaluate your products or services to identify which to invest in and which to scale back to enhance business performance.

3. Review Costs

Review all costs, identify alternative suppliers, and renegotiate deals to minimize your cost base. Look for savings through system or process streamlining.

4. Review Customers

Identify and focus on your valuable customers. Consider letting go of customers who delay payments or consistently negotiate prices down.

5. Assess Risk

Have contingency plans in place to manage the impact of accepted risks.

6. Get Clear on Your Personal Goals

Reflect on why you started the business, determine if those goals remain the same, and assess your progress towards achieving them.

Tailored Financial Solutions

Our CFOs provide a fresh perspective that can make a world of difference.

As former U.S. President Dwight D. Eisenhower once said, “It’s very easy to be a farmer when the plough is a pencil, and a field is a thousand miles away.” Business owners need to deeply understand their operations. Engaging a professional part-time CFO can help you understand market forces and growth options.

There is some more useful advice in some of our blogs on the topics of Strategic Planning and Planning Checklist

Don’t wait until end of the financial year to start planning and achieving your business dreams. The time to act is now. Contact us and let us help you navigate the financial seas and avoid the growth icebergs ahead.

CFO vs. Accountant – What’s the difference?

Published: July 17, 2024 by lauramills

What’s the difference between a CFO and an accountant? We get this question a lot!

Imagine the relationship between a CFO and an accountant as similar to a general physician working alongside a specialist in the medical field. While their roles may overlap, each offers distinct and vital services.

Typically, an accountant is managing financial statements, annual audits, preparing tax returns, advising on areas that require efficiencies and cost-savings, and may also provide risk analysis and forecasting.

The value of a CFO is specialist strategic advice, forward planning, assistance with scaling/funding or exiting the business, as well as acting as a knowledgeable sounding board – all of which is capable of tuning and driving the performance of your business and enabling you to fulfil your life’s ambition.

So, while it may be tempting to try employing one person to do it all, adding a CFO will give you a valuable resource that can bring strategic thinking, analysis, and a plan for growth into your business.

Let’s look more at what each role involves

Accountant role

An accountant meticulously ensures accuracy and compliance, much like a general physician monitors overall health. This accuracy is vital for tasks like tax preparation, adhering to financial regulations, and auditing.

CFO role

Conversely, a CFO, resembling a medical specialist, delves deeper, extracting insights from financial records. They forecast trends, devise strategic plans, evaluate the profitability of different business segments, manage cash flow, and play an integral role in major decisions such as funding, mergers or investments.

Beyond the diligent record-keeping of an accountant, a CFO introduces a strategic perspective, helping the business navigate its financial future.

Click here to see more about the four different “hats” that a CFO wears.

Key similarities

Recognising the overlap and in a spirit of collaboration, The CFO Centre is fully committed to adjusting our services to ensure harmony and mutual respect. It’s paramount to us that existing accountants never feel threatened or undermined; rather, we aim for a partnership that enhances the financial strength and clarity of the business. What’s the difference between a CFO and an accountant? While it’s useful to understand each role, it helps to see the roles as a winning combination.

Your 12 financial building blocks

At The CFO Centre, we help business with strategic planning and business support in many areas:

Sell/Exit
Identify Risks
Review Business Plan
Source Funding
Improve Systems & Controls
Implement KPI Reporting
Increase Profit
Improve Cash Flow
Tighten Up Compliance
Optimise Tax & Legal
Audit Outsourcers
Build Strong Banking Relationships

Our flexible model means that we can flex with your company’s requirements. Whether you need to increase or decrease resourcing we can help, right now.

Our highly experienced CFOs are ready to work either remotely or at your offices – or whatever blend of the two suits you best. Book your free 30-minute discovery call here or call us on 1300 447 740 to speak to your local regional director.

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With thanks to Elechia Jones, Regional Director in NNSW for her insights into this topic.

Source Funding: how a CFO can fuel business growth

Published: July 2, 2024 by lauramills

Just like a plane, a growing business needs fuel to soar. However, navigation to the final destination requires a well-crafted flight plan.

A part-time or fractional CFO can help pilot your business through its growth phase, ensuring you chart the right course—gathering the crucial numbers and securing the funding necessary for your business to thrive.

Here is how a CFO can assist your business to source funding.

CLOSE THE NUMBERS GAP

This initial navigation requires getting the right numbers in front of potential investors or funders in a format for them to make a decision. There is a large gap that exists in the SME market whereby there are many businesses that are both eligible for funding and should receive funding but don’t secure it. There is often a gap between existing financial information and what is required to get funding.

A fractional CFO can help your business in compiling the essential numbers that are required to source funding, making your business “funding ready” and enabling it to thrive and grow.

Some of the tools your CFO will have in their toolkit to assist you are (but not limited too):

Three-way forecasting modelling – balance sheet, profit and loss and cash flow statement
“What if” or “stress testing” of key revenue and margin assumptions
Updated reporting packages of historical and future performance
Prepare information memorandums for potential funders
Key business data for due diligence
Competitor analysis and size of market data
Business cases for the acquisition of capital equipment
Valuation models to assist in negotiating equity dilution from investors
Valuation models for M & A activity
Ensure a Statutory Tax (PAYG, Superannuation, Payroll Tax, Workers Comp and Corporate Tax) Compliance Program is in place and history of compliance.

GET THE RIGHT INVESTMENT FOR YOUR BUSINESS – A CFO IS YOUR PARTNER AND NAVIGATOR

With the initial flight plan complete it is time to get the right fuel/funding to grow your business. A fractional CFO, through their experience and contacts, can ensure you not only source funding in a timely manner, but also the right funding partner that fits your growth plan.

This funding could take the following (but not limited to) forms:

Bank Debt: Bank Debt – Bank Overdraft, Lease Facilities, Secured and Unsecured Loans, Trade Finance Facilities.

Private Debt or Investment: Direct Equity Investment, Secured and Unsecured Loans, Convertible Notes.

A CFO will guide you through this process by fitting the debt structure to your future vision/plan for your business based on your level of risk and appetite for additional investors.

Many business owners are reluctant to take on new investors, are looking to avoid debt, or are looking to ultimately exit at a future date, hence the right debt structure is critical prior to take-off.

A CFO will walk you through the implications of each path and with you create the right growth strategy and will stand shoulder to shoulder with you through the entire negotiation and funding process.

TAKE OFF – WHAT GROWTH CAN I FUND?

With the right flight plan and the right fuel, it is now time to take-off and fly to our final destination, GROWTH.

Growth comes in many forms:

1. Capital equipment to improve logistics or productivity

2. Expand geographically or within business development channels

3. Fund innovation to get product market ready

4. Acquisition of another business to increase market share

Your CFO is the ideal partner to assist you through the growth phase and ensure that you stick to the flight plan – and if you experience turbulence, they are with you to assist in steering the business back to clean air.

Having acquired the funding for growth, funders will require ongoing financial information through the growth phase. A CFO can provide the right numbers to your funders to create a long-term funding partnership that will result in new destinations and growth paths.

WHY THE CFO CENTRE CAN HELP YOU SOURCE FUNDING

The CFO Centre provides your business with a fractional CFO to partner you through the growth of your business.

We understand the numbers that matter, and with you we will:

Close the “numbers gap” with potential funders
Assist you to get the source funding you require at the right price
Use our past funding experience to find the right fit
Navigate you through the funding process
Assist you through the growth phase
Provide funders with the “numbers that matter” during the growth phase

CLIENT EXAMPLES

If you are wary of sourcing funding, we’d like to share some real life client examples. This blog post also delves into the topic in more detail.

Retool to increase gross margin

The CFO Centre assisted a group of founders to purchase an existing recycling facility. A Bank Lease Facility aided the replacement of the existing plant and equipment to enable the business to export its material to Asia that resulted in an approximate 20% increase in gross margin and eventual 10% market share. This was achieved through three-way modelling, reporting packages and extensive business case and market intelligence provided to the funders.

IT Business restructure, new investors and relaunch

An IT business with high growth potential and a strong customer relationship with Microsoft was experiencing cash flow challenges in the growth stage. The business acquired a fractional CFO though The CFO Centre, and the organisation was restructured into a new entity and new High Net Investors were invited to invest in the business. Within two years the business was acquired, and shareholders received 300% return on equity. This was achieved through three-way modelling, a CFO network of funding options, and business case discussion paper of expanded Microsoft relationship.

Debtor Finance to manage seasonal cash flows and key debtors

A chemical business with seasonal cash flows due to high dependency on the hospitality sector engaged a fractional CFO through The CFO Centre and a Debtor Finance facility was implemented that allowed the business fund 80% of sales daily – effectively bringing cash flow forward by 30 Days. The facility also improved collection discipline as the reporting package established slow payers outside terms.

The CFO Centre guides its clients all over the world to source funding. Reach out to discover how we can help.