Client Success Stories

The following case studies outline typical situations faced by clients, and how the client benefited after CFO For Hire was engaged to improve financial management and control. We are happy to provide contact details of reference clients on request.

Success Story 1

The client had grown to stage where the profits had become losses. Cash flow pressures followed and the business owner wasn't sure what was going wrong. To make matters worse, the true loss situation was not known until the tax return was prepared, some nine months after year end!

The accounting process was restructured and the client now has the information systems and reporting in place to monitor and manage the profitability of the various segments of the business. An unprofitable location has been closed down and other locations closely monitored. Budgets are now in place, controlling costs and assigning responsibilities. Monthly profit and cash flow forecasts now give early warning of potential crisis and allow the business owner to review the future financial impact of change prior to implementation. The business has returned to profitability and cash flow pressures have eased.

Success Story 2

Although the client was profitable, the business owner didn't feel in control and was burdened with trying to take care of the financial side of the business himself. Data integrity was questionable and management reporting was virtually not existent. Again, the true company result was not known until the tax return was prepared months after year end. The business owner was worried that in the event of a business sale, he would be ill prepared for any due diligence process and would not receive the true worth of the business.

The business owner is now comfortable with spending more time away from the business enjoying life, confident that the business is under control and receiving the information required to monitor performance. Although satisfied that the business is now well positioned for maximum sale value, plans have been shelved because of the balance that the business owner has been able to achieve.

Success Story 3

The client had outgrown the capabilities of their internal accounts staff but did not have the workload to justify a full-time senior finance executive. The CEO lacked support and was managing the business by instinct. There were concerns about asset recognition, all reporting was retrospective and decisions were being made without understanding the full impact on future financial performance. Future growth was impeded by the inability to satisfy the requirements of potential financiers and investors.

The accounts were restructured and systems implemented to recognise assets and ensure data integrity. Reporting has been developed to include future financial expectations and key performance measures. Accounting staff are coached to develop skills and are able to seek assistance with more difficult issues as they arise. Using fully integrated profit, cash flow and balance sheet forecasts to conduct scenario analysis, the Directors are able to make informed decisions and are now more confident dealing with financiers and investors. The CEO is able to take early corrective action because of advance warning systems and the business is well positioned to manage the next growth phase.