What is a Virtual CFO?
I find this term intriguing. What is virtual reality?
Wikipedia defines it as follows:
“Virtual reality is a computer-simulated environment that can simulate physical presence in places in the real world or imagined worlds.”
TheFreeDictionary defines it as follows:
“A computer simulation of a real or imaginary system that enables a user to perform operations on the simulated system and shows the effects in real time.”
SearchCIO-Midmarket defines it as follows:
“Virtual reality is an artificial environment that is created with software and presented to the user in such a way that the user suspends belief and accepts it as a real environment.”
All of these definitions define the environments as being artificial or simulated; not real.
It sounds like a Virtual CFO is an artificial or simulated CFO; maybe even a holographic CFO. Virtual reality is used in gaming Continue reading
The CFO 4 Small Biz™ tag line is “Every Company Needs Financial Guidance ® ”.
Is yours adequate? If so then there is no need to read further. If not, you will be interested in reading further.
“The role of a chief financial officer has changed dramatically in recent years. In many growing businesses, the CFO serves as a partner to the CEO, helping outline strategy and drive the business toward its goals. …the CFO is the partner of the CEO in helping lead the company to meet business goals.” (INC. Magazine 2/16/10)
Every company needs financial guidance; a Chief Financial Officer (CFO) provides that guidance. Most companies over $30 million will have a fulltime CFO. A small company has the same requirements of a large company; the difference is that the large company has the financial capability to have the resources in-house. Continue reading
A CNN Money web article published on 4/5/12 states:
“QuickBooks and TurboTax are near monopolies, with a retail market share of more than 90%, according to NPD Group, a market research firm.”
(Click here to read the article titled “How Intuit Rules Your Books”.) Intuit has over 4 million customers using Quickbooks®. Although there are other very good small business software available such as Sage 50 (formerly Peachtree), Quickbooks® is the dominant player. (Thus this article will focus on Quickbooks® and use this term to include editions from Quickbooks Pro to Enterprise.)
Intuit has been very successful with Quickbooks®, as indicated by the size of its market share, due to providing a lot of functionality for a very low price; thus a great value. In my opinion, Quickbooks® primarily services businesses with revenues below $15 million with the majority being below $10 million.
In my prior corporate career (before being a CFO 4 Small Biz TM Consultant), the companies for which I worked utilized much higher level (ERP) software to run the business. Even using higher level software, there was still a need to use separate financial reporting software because Continue reading
What does a fulltime CFO cost? The answer to this question is dependent upon company size and location. The Robert Half 2013 Salary Guide stratifies companies by sales revenue as follows: Continue reading
My first blog on this subject (Business Turnaround) discussed why successful business turnarounds are so difficult. My second blog on this subject (Turnaround – Elements for Success – Action One) discussed action 1 “avoiding cash surprises”. The next blog article (How to Achieve a Successful Business Turnaround) discussed action 2 “using financial information to proactively run the business”. This final blog article in this “Turnaround” series discusses the benefits of using budgeting and forecasting. Continue reading
I would like to list some of the business wisdom musings that I have had over the years. I had one manager call them “Mayo-isms” (those in bold). I have had so many that I won’t be able to recall all of them. But here goes:
If you pay peanuts, you will get monkeys.
On Guiding Subordinates
Your job is to make me look like a superstar and mine is to help you.
My first blog on this subject (Business Turnaround) discussed why successful business turnarounds are so difficult. My second blog on this subject (Turnaround – Elements for Success – Action One) discussed avoiding cash surprises. I will discuss the second element of success in this blog; using financial information to proactively run the business.
Too many small businesses only use financial information for what I call statutory accounting. That is accounting information is only used to collect receivables, pay employees, pay vendors, pay taxes, and pay the bank. Financial statements are prepared primarily to keep the banker “happy”.
Financial information is not being used Continue reading
As discussed in my previous blog, business turnarounds are not easy to achieve but can be accomplished by taking the proper steps and actions. Surprisingly these actions are also those used by owners of healthy companies to run their businesses well.
There are three primary elements for success in a business turnaround. Continue reading