These real life case studies demonstrate specific ways CFO Consultants can reduce uncertainty, find answers, and help businesses get control.

Serious Crisis Brews Under a Calm Surface

A client came to us with concerns due to a lack of timely information from their existing accounting system. We found that although the company had far-reaching real estate and asset holdings, a serious crisis was brewing under the surface. More than 1/3 of their ventures were unprofitable, and cash problems were severe. The company was less than a year from total collapse...something their limited accounting data failed to reveal. A complete overhaul was necessary. Using extensive analysis, the unprofitable ventures were either sold, leased, or modified over the next 18 months. Everything from bank loans to vendor contracts were reviewed and renegotiated. New software systems for tracking inventory and sales were implemented, and the accounting system was upgraded to appropriate capability. Result? The improvements not only put the company on the right track, but improved net annual income by over $1,000,000.

Business Faces Unknown Losses and a Spiraling Downturn

A client experienced substantial losses they did not fully understand and the losses were continuing. The owner needed to know how much longer the company could continue in its present circumstances, and what impact current actions would have on that date. CFO Consultants started by projecting the month and year the company would reach bankruptcy if things did not change. Then, partnering with the owner, we created a budget based on current company operations. Using historical trends, sales were projected based on milestones that created profitability in the timeframe needed to avoid insolvency. In addition, a monthly review was implemented to make sure the milestones were met. Measures were also taken so that the owner knew the results on the date of insolvency if the milestones were not met. The result? The client could either take positive action to avoid insolvency or choose when to cut losses. Uncertainty was dramatically reduced.

To Hire or Not to Hire?

This company needed to decide whether or not, and when, to expand their staff. By using budgeting and forecasting techniques, including sales trends and breakeven analysis, the answer was clear to the month and year. Result? The answer was obvious and specific.

Solving a Cash Flow Problem

This company had a cash problem but did not know why. CFO Consultants conducted an initial financial review that included various ratio analyses. We found that inventory was moving only 25 percent as fast as industry averages. We then found that an inventory analysis had not occurred in more than 10 years. We conducted a company-wide inventory, which revealed that that the numbers were off by over 50%, leading to over-ordering. After correcting the inventory numbers, CFO Consultants downloaded the information into a new software system that tracked inventory more effectively. Employees were trained on proper controls and the new software, and re-order levels were changed leading to an increase in cash of $50,000. The result is that this company got control, and doing so put them on the road to profitability.

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