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Ampleo
Leadership

7 Traits of Inspiring Leadership

February 24, 2017
5
min read

Finding a gem among leadership articles drives me. On rare occasions, I find one I feel I have to share. The article on the 7 characteristics of inspiring leaders was one that immediately made me feel I wanted others to hear her message. Kathy Caprino, a frequent speaker on leadership and women’s issues clearly paints the vision of that amazing leader we dream of being. She doesn’t articulate that her 7 traits are in order of importance and I personally feel her last point is strongest (Operating at all times with Integrity). This article is worth the 3 minutes to read.

much-billion-dollars
Cash Management
Forecasting

Got your Financial Forecast? Don’t Forget your Cash Forecast.

February 17, 2017
5
min read

As businesses forecast their financial future, most focus primarily on revenues and profitability. Frequently, those businesses forget or overlook that in many cases cash flow does not equal profitability. This is evidenced by all the CEOs asking us the question of why cash balances in the bank aren’t following what’s happening on their P&L. Businesses must keep in mind some of these differences as they forecast their performance, otherwise, they may be painfully surprised when it could all have been avoided.

The insight CEOs must either learn or remember is that there are a number of business activities that impact cash but not profitability, or in other words, their income statement. One easily understood example is a business with inventory. As an example, if a business sells a product with great margins and shows a profit on the P&L, but they’ve recently acquired a lot more inventory, all the cash coming from profitable operations will be used up. This circumstance frequently leads some CEOs to ask us where their cash has gone.

But inventory fluctuations are only one item that drives differences between cash and profitability. Other items can include:

  • the timing between receipt of vendor invoices and the timing of when they’re actually paid
  • the timing between your sending a customer invoice and when they pay
  • investments in equipment
  • loan payments

A financial forecast then cannot begin and end with a profit & loss statement. The forecast process must continue by considering all the business activities that are not reflected in their entirety on a P&L, of which the examples above are a few. A proper cash forecast will start with an income statement, then simply include the cash required for these other items. Only then will you understand how cash will be generated or consumed in your business. Here is one simple example of how to construct it from Investopedia.

A clearly explained document with detailed differences between your P&L and your cash flow is one fundamental requirement we recommend all CEOs ask from their CFOs. If they’re unable to, perhaps it’s time to consider upgrading your financial talent on the team.

Ampleo
Financial Reporting

Stop Drowning In Your Company’s Data

January 31, 2017
5
min read

Say your business data is an ocean and you’re stuck in the middle of it in a dingy without any of the essentials. Now imagine you’re starting to get really thirsty. What do you do? Well, unless you’re MacGyver and can quickly whip up a desalination filter from fish scales, old chewing gum, and a broken oar, you’re out of luck. Translation? Your existing business systems already surround you with vast amounts of data about your company, but unless it’s in a form you can really use, it’s not very helpful. Fortunately, a solution already exists in the form of something called an executive dashboard.

Basically, a dashboard is a powerful data visualization tool that gives you quick and constant access to your organization’s performance in real-time. By connecting with your key business systems via an application programming interface (or API), your dashboard can pull in the data you select into one simplified graphical interface.

So how do you make sure your dashboard provides the information and insights you need? We recommend the following:

  1. Choose your dashboard application carefully. There are a lot of solutions on the market — from free, no-frills options to sophisticated applications that let you heavily customize what you’re measuring and how it displays your data. Once set up, the ability of each solution to later customize your analyses ranges from simple to staggeringly complex, so consider that in your selection.
  2. Identify key performance indicators. A dashboard is only valuable if it tracks metrics that are critical to your company. Focus your efforts on one or two key areas in every part of your business that will make the biggest impact.
  3. Don’t go it alone. Whether they’re internal or external, you need a champion to help identify the right KPIs and to be constantly fine-tuning your dashboard so you can make good decisions quickly. The financial industry calls these champions FP&A, or Financial Planning & Analysis personnel. The tech community refers to them as Data Scientists. Whatever you call them, you need the human side to help analyze and interpret.

If you haven’t already, it’s time to stop wading through excessive amounts of unnecessary data. The right dashboard solution for you is already out there and can make a big difference in your ability to direct your company going forward.

Cash-flow-panic
Cash Management

Cash Flow Crisis? Don’t Panic!

October 31, 2016
5
min read

Businesses, whether small or large, strive for steady and solid growth. The ongoing process of an organization’s growth is sustained by several different factors, one of which is the company’s finances. Monitoring the inflow and outflow of your company’s cash is critical to ensuring growth, yet few business owners manage cash flow effectively.

As we know, cash is king. So it makes sense for business owners to focus large portions of their attention on cash flow, right?

Yep, not a trick question.

The term cash flow is used to define the process of money coming and leaving your business. To put it simply, a business experiences positive cash flow when its financial inflow (accumulated by various revenue sources) is greater than the amount of funds leaving the business through expenses. A negative cash flow — or cash burn — occurs from the exact opposite equation: the business’ financial outflow (totaled by various expenses) is greater than its inflow.

Businesses will generally not achieve financial control and positive cash flow right from the get-go, nor does it often happen overnight. The journey to achieving positive cash flow could be made difficult because your businesses may lack the means to manage cash flow using proper strategies and expertise.

However, solving negative cash flow problems starts with identifying the issues. Evaluate where your company burns its cash the quickest and pinpoint missed opportunities to increase cash. Is your business waiting for the next big deposit from your top-spending client just to keep things running? Would you like to accept discounts on accounts-payable bills, but can’t due to your lack of cash? If these scenarios mirror your financial standing, it’s time to address your company’s cash flow problems.

Struggling businesses can embrace changes that will foster better cash flow management. Depending on your business needs, here are some actions you need to take:

  • If you have bank loans, protect that relationship by communicating often and early about your challenges, as counterintuitive as that may sound.
  • If you don’t have bank loans, begin establishing relationships that will allow you to put a line of credit in place for tighter times.
  • Plan for financial shortfalls by maintaining a solid cash reserve to keep your business afloat.
  • Find potential problems as early as possible. This can be achieved with weekly or monthly forecasting cash flow thresholds.
  • Ask your best-paying customers to accelerate their payments and offer small discounts on the bill. Even consider having payments due immediately.
  • Prioritize your business’ bills and know what essentials must be paid first.

Another consideration to help manage cash flow is to seek professional help. Find someone to advise you on solutions that may be available in your particular circumstances. This should be an individual or firm that has been there before and can help you see around corners. These are the times, though feeling strapped when you can’t afford to find capable advice.

5 Things to Prepare Your Company For Growth
Cash Management
Forecasting

How to Forecast Cash Flow [5 Reasons You Need One Today]

October 25, 2016
5
min read

I had a business finance professor that often repeated the mantra, “cash is king!” Whether your business is large or small, growing or declining, not-for-profit or for-profit, cash is the lifeblood of your business. Growing businesses must consider whether they have enough cash to support growth plans. Declining businesses use a cash forecast to ensure it is not trading while it is insolvent. Seasonal businesses must predict how much inventory they can afford to purchase to prepare for an upcoming peak. To be sure, cash management is critical for all businesses. Unfortunately, many business owners fail to forecast cash and are surprised when they have a business aneurysm : E.g. they don’t have enough cash in their bank account (or capacity under their operating line) to pay suppliers or make payroll.

Why Create a Cash Forecast?

Business owners should forecast cash flows for the following five reasons:

1. To create an early warning system.

A business owner that can predict that a cash shortfall is coming has many more options and time to address it than a business owner that gets surprised by a cash crunch.

2. To identify problems with customers.

Preparing a forecast can help a business owner learn which customers are paying their debts timely and which are not.

3. To ensure the business can pay suppliers and employees.

Suppliers who don’t get paid will soon stop supplying the business. And worse, employees that don’t get paid will stop showing up for work!

4. To comply with requirements by lenders.

Many lenders require borrowers to provide cash flow reports, to ensure the business is liquid.

5. To control the way cash is expended.

Many business owners are surprised by the number of ways cash leaves their business. For instance, some business owners are surprised by the amount of travel and entertainment expenses made by employees through company-issued credit cards. Cash forecasts alert the business owner to the ways cash is expended and can assist in managing them.

How is a forecast created and managed?

Cash forecasting does not need to be highly scientific or overly complex. I often tell clients it’s as easy as kitchen-table budgeting, and when implemented right, can take less than 30 minutes to manage each week. A proper cash forecast is built as follows:

  1. Determine the frequency you will update and review the cash forecast. Companies in fast-changing environments or teetering on solvency should forecast cash weekly with a 13-week horizon. Stable companies can manage with monthly forecasts and should look forward at least six months.
  2. Enter the current beginning cash balance of your company’s cash account(s) into a spreadsheet. Or, if your company operates under a line of credit, enter the line availability. This number should be net of any outstanding checks that have not yet been presented.
  3. Forecast all expected cash disbursements for each period, paying close attention to wages, payroll taxes, and so forth. For the closest weeks, use the accounts payable aging report to determine which bills will be paid and when. For later weeks/months where bills have not yet been received, make estimates based on historical actuals, your knowledge of the business, etc. Make estimates for non-trade disbursements too such as capital expenditures, sales, and use taxes, interest payments, credit card, and debt service payments, and so forth.
  4. Using a similar process, forecast and total all expected cash receipts for each week (or month).
  5. Cash receipts will include receivables expected to be collected by week (or month) from customers. For short-term forecasts, work from the accounts receivable aging report. For each open account, list when each invoice will be paid and insert it into the forecast.
  6. Other expected cash receipts should also be forecast, such as asset sale proceeds, insurance settlements, vendor rebates, advertising coop receipts, and so forth.
  7. Subtract total disbursements from total receipts to compute the net change in cash week-over-week (or month-over-month).
  8. Add or subtract the net change in cash from the beginning cash balance to compute the ending cash balance each period. Roll the ending cash balance from the first period to the beginning cash balance of the second period and repeat.

Business owners should track actual performance against the forecast weekly or monthly to learn what cash receipts were expected to be collected, but were not, what unexpected disbursements were made, and what the company’s short-term liquidity position is. If there are ever any periods where the ending cash balance (or line availability) is forecast to go negative, the business owner needs to either identify additional sources of cash; accelerate collections; or delay disbursements.

It’s been twenty years for me since my finance professor crowned cash as king. Since then, I’ve consulted with dozens of business owners with unique sets of challenges and opportunities, but each has had a common goal to maximize cash. The business owners that have implemented the principles and practices above have grown, improved, and recovered their businesses. My professor was right. Cash really is king.

Ampleo
Financial Reporting

What Metrics Are You Looking At?

October 25, 2016
5
min read

Information overload. We all feel it and yet we spend much of our waking hours with our eyes glued to either a 27, 13, 10, 6, or 5-inch screen hoping to find additional information that is both new and interesting for ourselves or useful for our businesses.

According to research performed by Forbes contributor, Bernard Marr, information creation and information access is growing at a staggering rate. Consider the following:

  1. More data has been created in the past two years than in the entire previous history of the human race.
  2. By 2020, we will have over 6.1 billion smartphone users globally (overtaking basic fixed phone subscriptions).
  3. Within five years there will be over 50 billion smart connected devices in the world, all developed to collect, analyze and share data.
  4. By 2020, at least a third of all data will pass through the cloud (a network of servers connected over the Internet).
  5. For a typical Fortune 1000 company, just a 10% increase in data accessibility will result in more than $65 million in additional net income.

With information growing at an ever-increasing rate company leaders can start to feel overwhelmed when faced with the question of which company data KPIs should they be paying attention to and how they use these KPIs to measure the health of their businesses.

In the business world, it is common to hear terms such as Big Data, Business Intelligence (BI), Data Analytics , and Business Executive Dashboards. What do these terms mean and how does the typical small to medium-sized business (SMB) leverage these tools?

At their core, all of these terms are synonymous and are used to describe the leveraging of technology to access and visually display a company’s data KPIs that will help interpret data points and subsequently prompt some sort of action. Yes, that’s a mouthful but consider the dozens of business metrics company leaders need to be following in order to make timely decisions and build the appropriate strategy.

A pet peeve of many company leaders as it relates to their KPIs is that they can never seem to drill down into their company’s data points to identify trends either because the data isn’t readily accessible or it is significantly out of date by the time they finally get it. The last thing a business leader neither needs nor wants is another spreadsheet with a pivot table to pour over.

The term Executive Dashboard originated from the automobile dashboard that shows the key operating gauges of a car. In fact, when you think about it, Executive Dashboards are used in much the same way as automobile dashboards. Under the hood of your vehicle, there are literally hundreds of processes that impact the performance of the vehicle. The automobile dashboard gauges in your car tell you things like:

  • •Rate of Speed
  • •Gas MPG
  • •Engine Temperature.
  • •Gas Tank Level
  • •GPS Directions

An Executive Dashboard functions like the gauges in your car but will reveal business KPIs in “real-time” like:

  • Revenue MTD, vs. Target, Growth Rate YOY
  • Profitability MTD, QTD, YTD
  • New Customers Acquired/Geography
  • Cash Flow Forecast
  • Cost Per Lead – Click Through Rate – Conversion Rate
  • Many More

Simply displaying a company’s KPIs on a large monitor in the hallway or via an app on your phone is not enough to build an analytic culture within a company. Harvard Business Review contributor, Shvetank Shah, touched on this in his article titled, “Good Data Won’t Guarantee Good Decisions.” Mr. Shah states that “ Companies that want to make better use of the data they gather should focus on two things: training workers to increase their data literacy and more efficiently incorporate information into decision making, and giving those workers the right tools.”

Sounds like good advice to me.

Managing Cash via Working Capital Optimization
Cash Management

Managing Cash via Working Capital Optimization

March 21, 2016
5
min read

Here is a trick question for you: Which is more important – Profitability or positive Cash Flow?

For those of you thinking, “Wait, how are they different in the first place?”…just keep reading.

As you think about that question, consider that 82% of entrepreneurial businesses fail because of poor cash management!

I would never suggest that profitability concerns should be secondary to cash concerns, but understand that profit doesn’t pay bills, cash does.

Remember that Profit does not necessarily equal Cash Flow. They can be, and frequently are, significantly different, the main difference usually coming from working capital.

Working Capital

Working capital can simply be defined as the cash you have put to work in your business. What is the cash “working on”? Good question. Typically there are three areas:

  1. Granting your customers short-term loans (aka Accounts Receivable)
  2. Paying for all that stuff in your warehouse (Inventory)
  3. Short-term loans your vendors have given you (Accounts Payable).

Optimizing your working capital doesn’t have to be complicated. How well you have it optimized is always a function of how well you understand how cash moves through your business in the first place.

Cash Management

By asking two questions I’ve found I can get an immediate and reliable representation of how good a company’s cash management practices are. I ask:

  1. “What is your cash balance right now and how much do you need in the next 3 months?”…and if you don’t know this, either figure it out or go to stressballs.com and place your order now, don’t laugh…it’s a real site.
  1. “How many days faster or slower do you pay your vendors than you collect from your customers?”

Their answers reveal whether the company understands cash management blocking and tackling. Great cash management principles and basic refreshers can be found at Inc.com, Entrepreneur.com and CFO.com, ranked in my perceived order of simple to sophisticated.

Once you’ve got the concepts, we always recommend doing two things: One, prepare a 13-week forecast, and two, relentlessly attack working capital.

Here are some thoughts on optimizing working capital.

Accounts Receivable

It is your money. Go get it. There are myriad strategies (see above links), but never NEVER assume all your clients will simply pay you on time. Be proactive…reach out.

Inventory

Look out into the warehouse. If you see any inventory…there is probably an opportunity for improvement. Typically you need technology to help optimize your inventory levels. QuickBooks or similar are adequate in some cases, but often you need something more robust like Fishbowl. You don’t want to enter it twice. Get Fishbowl and integrate them seamlessly.

Accounts Payable

Ensure you’re paying your bills appropriately. Ask your vendors for terms.

Study the concepts, prepare and execute your plan.

Managing Cash via Working Capital Optimization
Raising Capital

An “Expanded” Definition of Accredited Investor.

February 6, 2016
5
min read

By a somewhat surprising margin (347 – 8), the US House of Representatives overwhelmingly approved legislation that would expand the definition of an accredited investor. Under current rules, a person must have a net worth of $1 million, not including the value of a home, or make $200,000 or more annually.

On Thursday, Investment News reported, “The legislation would allow anyone who has a securities license or who has professional knowledge and experience related to a specific security to participate in private placements [even if they don’t meet the current definition of an accredited investor]. The latter description would apply, for instance, to a doctor who wants to invest in a medical-device manufacturing startup. The bill’s author, Rep. David Schweikert, R-Ariz., cast the measure as an effort to democratize investing in emerging companies. “In America today, some of the greatest investment opportunities are available only to those who meet a certain wealth threshold,” Mr. Schweikert said on the House floor. “With passage [of his bill], Congress took a step towards expanding investment opportunity to include hard-working Americans with sophisticated professional experience. In today’s hyper-efficient economy, that expansion opportunity is a key part of driving economic growth.” The lawmaker hopes the decisive House action will encourage his Senate colleagues to take up the bill or a similar measure. Mr. Schweikert is talking to members of the Senate Banking Committee.”

At Ampleo formerly Advanced CFO, we believe that this is a good first step to provide more people the opportunity to invest directly in private business creation, however, we also remain cautious and will advise our clients to be very careful about accepting money from this new cadre of investors (assuming the legislation passes the US Senate and is signed into law by President Obama) just as we have advised them to be careful and well informed before jumping into crowdfunding. We also believe that this is a trend that started with the new rules around crowdfunding and isn’t likely to end so as an entrepreneur who needs to get sufficient capital to fully develop your product and scale your business, you can’t afford to ignore or be ignorant of the opportunity or the current legal and regulatory developments in this area.

As more people are legally able to invest in private businesses without the cost and effort of preparing and filing volumes of disclosures and forms for a private placement in which you are able to sell to non-accredited investors, we believe that the businesses accepting the money will become more and more exposed to liability and lawsuits if things don’t go as well as they plan. I am not attempting to provide legal advice or opinions, just the best advice I can base on my years of experience in private, financing transactions.

In summary, I recommend that you: 1) get informed; 2) seek and listen to qualified advisors; 3) proceed with caution. If you have questions or wish to discuss how these new developments may apply to your business, please reach out for a free consultation!

Managing Cash via Working Capital Optimization
Cash Management

What is Operating Cash Flow?

January 11, 2016
5
min read

You may have heard of cash flow, but what exactly is operating cash flow? While cash flow is the net amount of cash moving in and out of a business, operating cash flow is something different. Operating Cash Flow (OCF) is a measure of the amount of cash generated by a company’s normal business operations. Since it adjusts for liabilities, receivables, and depreciation it is a more accurate measure of how much cash a company has generated than other measures of profitability such as net income.

Why is operating cash flow important?

No matter how you choose to measure cash flow, it is still important. Cash flow (and OCF) is what helps companies expand, launch new products, pay dividends, and even reduce debt.

Without positive cash flow, a company doesn’t have as much flexibility. They may have to borrow money, or in the worst case – go out of business. Having a negative cash flow is acceptable at times, but should not become a habit. If the negative cash flow can be attributed to temporary expansion costs, then that is fine. If the negative cash flow is because of a poor investment or other mistakes that won’t correct themselves, then your business may be in trouble.

How do you calculate operating cash flow?

Generally, a statement of cash flows breaks out into three different categories per period: cash flows from operations, cash flows from investing activities, and cash flows from financing activities. OCF is calculated using the following formula:

Operating Cash Flows = Net Income + Non-cash Expenses (Usually Depreciation Expenses) +/- Changes in Working Capital

How does operating cash flow relate to the big picture?

In the end, OCF reveals how much cash is generated from the core operations of your business. This is very important to the overall health of your business and the larger picture of cash flow. OCF is just one part of cash flow, and it is typically a big part of what makes your company profitable.

There is a lot more to cash flow and operating cash flow, but the essentials remain. To be a profitable business, you must have a positive cash flow. If you are not positive, then don’t delay in looking for ways to solve this problem. This begins by looking at your OCF, analyzing a cash flow statement, and making plans for the future. Wherever your company is financially, it is important to look towards the future, free up cash to invest in growth, and be ready for any hard times that may come your way.

How to Manage & Improve Cash Flow for Small Business
Cash Management

What is Cash Flow?

December 10, 2015
5
min read

Cash flow. The reason you’ve heard it over and over again in business is because it is key to the survival of every business. Cash flow is the net amount of cash moving in and out of a business. So why exactly is it important and how can learning more about it help your business?

Cash flow is more specific than a single number; it is made up of many variables, each contributing to the positive or negative cash flow of a business. A positive cash flow is a sign that a company’s assets are increasing, enabling the company to pay off debts, return money to shareholders, and provide a buffer against future challenges. Negative cash flow is a sign that a company’s assets are decreasing. Overall cash flow is a good sign of the quality of a company’s income and is a good judge of how prepared a company is for the future.

Being able to manage your cash flow is perhaps more important than knowing what cash flow is. Cash flow management is the process of monitoring, analyzing, and adjusting the cash flow of your business. Many different businesses fail due to the poor management of cash flow. If your business consistently spends more than it earns, then this is a problem that needs to be addressed. There are several different ways to overcome a cash flow problem, including, a cash flow analysis, developing proper strategies, a cash injection, and other financing options.

Cash flow analysis is best performed by looking at your cash flow statement. The cash flow statement is one of the most important statements for your business. This document is a listing of cash flows that occurred during a specific accounting period. In addition to the cash flow statement, a cash flow forecast is a projection of future cash projections. When you look at your cash flow statement, you may find a need to create a cash flow forecast. This can help your business stay profitable and prepared for the future.

There is a lot more to cash flow and cash flow analysis, but the essentials remain. To be a profitable business, you must have a positive cash flow. If you are not positive, then don’t delay in looking for ways to solve this problem. This begins by looking at your cash flow statement, performing a cash flow analysis, and making plans for the future. Wherever your company is financially, it is important to look towards the future, free up cash to invest in growth, and be ready for any hard times that may come your way.

Managing Cash via Working Capital Optimization
Leadership

5 Tips for Presenting to Executives

October 28, 2015
5
min read

We, as CFOs, regularly think about our priority of assisting the CEO to do her job better. CEO’s have very full plates. They are always looking for people they can trust to get things done. With trying to do so many things at once, the last thing she needs is a finance person telling her all of the problems her company has. The CEO needs to know about the problems, but just as importantly needs someone to offer her solutions. The following 5 tips on how to present to Executives really ring true.

  1. Get to the point. Executives don’t have time for the long version.
  2. Talk about problems and solutions winning in the marketplace. CEOs are thinking 3 years in the future.
  3. Sell the vision before sharing data. They simply won’t listen to the data otherwise.
  4. Lead with stories, not data. Data bores them.
  5. Don’t be afraid of executives, be afraid for them. Your job is to alleviate their fears and make their jobs easier.

The 5 points really will help you with your presentations and just your overall communications with CEOs and executives you deal with on a daily basis.

Why You Need a CFO, not Just an Accountant
Accounting
CFO Services

Why You Need a CFO, not Just an Accountant

October 16, 2015
5
min read

January is named after the Roman God Janus. Janus is depicted with two faces, one pointing forward and the other back and is symbolic of the process of change — gazing backward at the recent past while staring intently into the new improved future.

As I meet with CEOs I frequently invoke the image of Janus to help them understand the role of finance in an organization. It also must be capable of looking forward and backward at the same time. For many accountants trained in record keeping, they’ve got the looking back part of the job nailed. However, rarely do we find accountants who are both accurate in their perceptions and descriptions of past performance and have the rarer ability to look forward and assist meaningfully with financial strategy.

This ability to do both is the key factor for success for any CFO. You may call them controller, Vice President of Finance, or CFO, but as CEO, you should ask yourself whether you have both in your senior-most financial leader.

A timely measure of the CFO’s ability to do both is how well they assist you in connecting your current performance to your strategy to your forward-looking operating plan. The last few months of the year are the time when many organizations are reflecting on past performance and developing their next year’s operating plan or budget. A critical component of any budgeting cycle is how well it connects to your overall strategic plan. The CFO should be the person ensuring linkage, otherwise, he or she is simply an accountant.

To put it simply, this virtuous planning cycle should begin with refreshing your overall strategy and identifying the 5-6 most critical factors you must achieve in the next period to move effectively toward achieving your strategic priorities. Larry Bossidy, a mentor of mine from my Honeywell days, often said,

“Every company has a half a dozen or so critical issues which if left unaddressed will keep the business from reaching its full potential.”

Once these critical success factors are defined, you can build a proper operating plan or budget around it. Creating a budget without linkage to these critical success factors means you’re sending your team off to execute against a plan without real direction. What a waste of time. Remember that your budget should be just ‘year one’ of your strategic plan and not simply a rolled-up budget of what individuals on your team want to accomplish, which we see frequently.

Keep in mind these principles work even for startups, but the cycles should be compressed. A one-year cycle may well be a 3 or 6-month cycle.

There are other differences between an accountant and a CFO as well.

  • Accountants often report based on tax or GAAP without regard to how the information could be better presented internally for decision-making purposes.
  • Accountants often aren’t the best communicators or don’t understand interpersonal dynamics

If you’re feeling a little like you, as a business leader, need to understand more about the nature of an accountant versus a CFO, here are a couple of brief articles describing the difference.

Why You Need a CFO, Not Just an Accountant, by Benjamin Osei Mireku.

The Difference between a CFO and a Controller

Or, if you are entering a planning cycle, I strongly recommend you read Bossidy’s book, “Execution: The Discipline of Getting Things Done.” Many of the principles he discusses are also summarized in this article in Strategy & Business.

GLOSSARY

Not sure what something means? We've got you.

Business, finance, and HR terminology explained plainly by people who use it every day.

Glossary

What is a Fractional CFO?

Glossary

What is a Fractional CFO?

Glossary

What is a Fractional CFO?

Glossary

What is a Fractional CFO?

 Let's Build It

You've Got the Vision. 


We've Got the Fractional

Team to Build It.

A fractional CFO who knows your numbers. A fractional CMO driving your pipeline. An HR leader building your people systems. Sales tax specialists keeping you compliant. Valuation experts ready when you need them. All embedded. All executing. All backed by Ampleo Intelligence, our AI platform.

 Let's Build It

You've Got the Vision. 


We've Got the Fractional

Team to Build It.

A fractional CFO who knows your numbers. A fractional CMO driving your pipeline. An HR leader building your people systems. Sales tax specialists keeping you compliant. Valuation experts ready when you need them. All embedded. All executing. All backed by Ampleo Intelligence, our AI platform.

 Let's Build It

You've Got the Vision. 


We've Got the Fractional

Team to Build It.

A fractional CFO who knows your numbers. A fractional CMO driving your pipeline. An HR leader building your people systems. Sales tax specialists keeping you compliant. Valuation experts ready when you need them. All embedded. All executing. All backed by Ampleo Intelligence, our AI platform.

 Let's Build It

You've Got the Vision. 


We've Got the Fractional

Team to Build It.

A fractional CFO who knows your numbers. A fractional CMO driving your pipeline. An HR leader building your people systems. Sales tax specialists keeping you compliant. Valuation experts ready when you need them. All embedded. All executing. All backed by Ampleo Intelligence, our AI platform.