The chief financial officer (CFO) is an executive role that oversees or executes cash flow and financial planning, among a myriad of other financial efforts within an organization. While a CFO of the future has multiple duties, it is imperative to the company’s health that the person within this role reports accurate and up-to-date figures.

While the role of CFO arrived during the early 1960s, it’s clear there is incredible value in position and therefore isn’t going away anytime soon. There are noticeable trends within the role’s evolution, enforcing the importance of understanding the nuances of expectations in decades past.

The Traditional CFO

In the past, the CFO role was very technical and somewhat isolated from the rest of the company. The path of becoming a CFO typically began with an accounting or finance background. Typically, requirements would include an MBA, MFA, CFA, or experience as a CPA. From there, it would have required working up the corporate structure and serving long periods at the desk. This numbers-only role required the chief financial officer to manage financial planning, risks, and reporting, along with record keeping. Likely, they would report directly to the CEO but may have assisted the chief operating officer (COO) with matters relating to the company’s budget.

However, there has been an increasing amount of pressure put on the CFO due to a competitive and continuously changing business world. Just a few examples of these pressures include new technologies, globalization, emerging markets, and business models – all that affect how to reach customers and win deals. Amid streams of corporate scandals and continued backlash from the Great Recession, these instances have caused the role of the CFO to evolve, requiring a brand new set of skills.

Read more: Five Key Traits of Successful Leaders and How They Can Benefit Your Company

Evolution of the CFO

The CFO role has continued to change, especially in the last few years. More and more companies want to add broader skill sets and leadership abilities to their management teams and are looking to future CFOs to help. As the financial gatekeeper at the company, they are being asked to evolve and expand whether they have been in this C-suite level role for years or are newly appointed. Meaning any aspiring CFO should expect to add some new tools to their belt to get the job done right.

It is imperative to have the unmatched financial expertise to rise to the executive level within an organization as a CFO. This expertise can aid in the company’s success in sales, technology, marketing, and operations.

Depending on the breadth of the business, the CFO may also be required to oversee particular functions that generally may have landed outside of their scope. Such duties include IT and legal. Therefore, the expansion of the role requires the CFO to be financially savvy, but it also means they will need to tap into their operational and visionary sides as well. More on that to come.

Why a Business Needs a CFO

Naturally, a valid question is why a business needs this kind of role. Well, bringing on a CFO at the right time can elevate a business’ profits and, ultimately, its success. As they champion the most up-to-date financial information for the company, they are an incredibly powerful asset to have on any team. By having the most accurate information at the right moment, a decision-maker can feel confident in making better business decisions. These choices include investment type decisions around such things as increasing staff, budgets, acquisitions, or even purchase or leasing of new equipment.

There is an incredible value of having a CFO who truly understands the ins and outs of the business. It is with this depth of knowledge that they can make a difference and hopefully enact positive change and growth within the company.

Read more: Tips for Businesses Experiencing Fast-Paced Growth

Finding the Modern CFO

The importance and breadth of the CFO’s role continues to grow, shaping a future CFO looks very different from that of years past. Meaning, the Chief Financial Officer [of the Future] will need a wide range of skills and capabilities to prepare for the opportunities and challenges ahead. Whether you are a current CFO or a future finance leader, continuing your personal and professional development will be critical for success.

Most importantly, you don’t need to let go of your current CFO to attain the CFO of the future. If they are willing and eager to learn the tools required to take your business into the future, then train them. However, if your company has yet to hire a CFO or has been looking to replace the current employee, then be sure to look for these qualifications in your applicants:

• Broad business knowledge
• Operational experience
• Leadership qualities
• Strategic mindset
• Strong communication skills…and all the traits mentioned earlier!

Remember, for a CFO to be successful in the future, they will need to be a leader in a workplace that is continuously changing. They must be more than “the finance guy,” “the numbers gal,” or “the Excel wizard.” As technology grows and cybersecurity becomes more of a threat, the CFO must be adaptable and utilize the technologies that will help their company to grow. If the company’s CFO can understand that communication will get them farther than keeping their nose in the books, you may have a modern CFO on your team.

If your company is searching for a CFO, Signature Analytics can provide part-time CFO’s of the future at a fraction of the cost of hiring a full-time CFO. Not only is this a budget-friendly option for any company, but a part-time CFO can help to refine policies and procedures, and even implement better tech tools for the accounting department to utilize. To find out more about our fractional modern CFO services contact us today.

In all industries, Controllers are the people who supervise all accounting functions in a business. These financial experts steer the ship to keep the company’s finances on track. As you can imagine, a Controller has many responsibilities, including:

• Supervising accounting teams
• Managing and maintaining cash flow of all accounts
• Managing controls to ensure assets are used appropriately
• Creating the policies and procedures to manage all accounting processes
• Providing data for audits
• Compiling financial statements and reports
• Determining appropriate budgets for the company
• Overseeing accounts payable
• Preventing fraud or misuse of company assets

In short, a Controller is in charge of managing the accounting department. The right person must have multitasking skills and highly developed communication skills to work closely with business leaders and their team.

4 ways a Controller can grow your business

A professional Controller can help your business grow in several ways, including:

1. Taking accountability for your company finances

Your financial Controller will take full responsibility and accountability for your company’s financial systems. This person is typically so in tune with your finances and business operations that are aware of every number crunched and have a thorough understanding of your business expenses.

A Controller will also be able to explain any fluctuations in your cash flow, strategize your finances, and optimize them. Your Controller will play a big role in every financial decision you make on behalf of your company, from purchasing new equipment to hiring new staff. Also, they will likely be the primary point of contact for your legal, insurance, and banking alliances. With all these major responsibilities taken off your plate, you are left free to do what you do best — further developing and running your company.

2. Finding areas where you could be saving on costs

One of the most critical parts of the Controller’s job is to get to know the business inside out and find ways to improve profitability and budgeting. A proactive Controller will know if your company’s sales are hitting targets, and they will be aware of ways to decrease expenses and improve product margins.

Your company can benefit from a controller who is an expert at finding and launching cost-saving initiatives to increase your profitability and allow your business to flourish.

3. Creating value as a business partner

A Controller who is worth their salt should manage vendor relationships, so the business receives the best available terms and contracts. The right Controller must also feel comfortable to talk to you if they disagree with your company’s spending habits.

If you are patient and listen to your Controller, you will find their opinion not only valuable, but their professional point of view can save you money that can be reinvested in your business.

4. Managing your company data

A financial Controller plays an important role when it comes to managing your company data. If you’re going to invest money in hiring a Controller, you need to understand his or her exact role in this critical area.

Your Controller will not deal with financial data entry but will supervise the process and make sure it’s carried out accurately, efficiently, and securely. Within this role, the Controller should be up-to-date on current accounting and finance technology. This person should always be on the lookout for new and innovative technology to help streamline the running of your accounting department.

When does your Business need a Controller?

Hiring a Controller sounds like a big job — and it is. So, when does it make sense to hire a high-level financial professional? If any of these situations sound familiar, it might be time to hire a Controller:

• Your company is growing rapidly, and you need help in making financial decisions, such as evaluating new revenue streams or purchasing a new facility
• You need someone to lead your company’s accounting operations so you can spend more time managing your business’s development
• You need regular, consistent reporting on your company’s financial position
• You want to ensure that your company is fully compliant with tax codes
• You need help managing significant amounts of receivables and inventory

Read more: What Does a Controller Do and Should You Hire One?

What are the benefits of outsourcing a Controller position?

If you are running a small or medium-sized business, you may not have the budget or need for a full-time, in-house controller. But that doesn’t mean you don’t need someone to fill this role and the duties associated with this being a successful hire.

You can still benefit from a Controller’s experience and expertise by outsourcing this role. An outsourced Controller will give you benefits you would not get with an in-house Controller, such as:

• No lag in operations: When you hire an outside source for financial work there are multiple benefits. If they are sick, take vacation time, or there is turnover there is always a well-suitable candidate on the team who can pick up the work uninterrupted or step in where needed. This way, your business won’t feel the burden. Furthermore, you won’t have to spend time and money hiring and training another employee. When you outsource your Controller, they are already vetted, so you can be sure the job is completed with efficiency and expertise.
• Expertise on demand: When you hire a professional outsourced Controller, they should have an accounting degree, several years of experience working for other companies, and in-depth knowledge within a specific industry. Outsourced Controllers should come with a high standard of financial expertise and knowledge. Bringing on an outsourced Controller who knows your industry inside and out can make you more money and help your company grow. And in the event additional support or expertise is needed, your outsourced firm should have access to an entire team of experts so you are really getting access to the entire company of experts.
• Reliable reporting: As a business owner, you need access to accurate financial reports at the end of each month to help you see where your business is doing well, and to highlight problem areas. An outsourced Controller can create monthly reports tailored to your preferences, whether you need general or more in-depth reporting.

Read more: 5 Signs Your Business is Ready for Outsourced Accounting

Don’t wait until it’s too late to hire a Controller. If your company is growing quickly and you feel that your financials are out of control, now is the time to get expert help before the company starts to suffer. Even if you can’t afford to hire a full-time Controller, you can still reap the benefits of outsourced Controller services. And it might even be a better fit until you really need to hire for a full-time role.

If you’re thinking of hiring an outsourcing Controller or even considering an in-house role, Signature Analytics can provide you with the best advice and direction on how to build your internal team and where outsourcing might benefit your company.

A Signature Analytics financial expert will collaborate with you and your company leadership to oversee the implementation of a financial plan designed to suit your company. They will streamline your current accounting process and provide you with ongoing financial reports and metrics for review. Signature Analytics also offers part-time CFO services, should your business plans require one – which most do at some point.

At Signature Analytics, we work together with our clients to provide them with the benefits of a large firm, coupled with the close relationship of working with a local team daily. Contact us today so we can help you take charge of your business finances and make your company grow.

Do you find yourself struggling to manage your business and accounting? Are you concerned about data security? Is it taking significantly longer to handle invoicing and payroll?

You may not have considered outsourcing your accounting, but that might be because you don’t recognize the warning signs that your company needs it.

If you find yourself answering the questions below with an emphatic “yes,” it might be time to start thinking about outsourced accounting services.

• Are you spending way too much time on your accounting?
• Are you worried about data security?
• Are you experiencing delays in accounting and payroll?
• Are you having difficulty finding records quickly when you need them?
• Is your business growing too fast for you to keep up with your finances?

The Ultimate Guide to Scalable Accounting for Your Growing Business

Are you’re still unsure whether outsourcing services for financial management is feasible for your business? Let’s take a closer look at the key signs indicating that you might be heading in that direction.

1. Your time is being taken up by accounting, and you can’t focus on running your business 

Indicators: Whether you are handling accounts by yourself, or you have other team members helping you, if accounting is keeping you from other important business, it’s time to outsource this job. If you have staff members pulling double duties, and your accounting is taking up too much of their time, you need someone to deal specifically with these tasks.

Warning: When you designate this task to other staff members who are not qualified or equipped to deal with accounts, you run the risk of errors in your bookkeeping, which can cause major problems during an audit.

Solution: Outsource your accounting to a professional team who will be able to dedicate their time to the task without making mistakes.

Benefits: Delegating accounting to a professional team means you can give your time to other areas of the business. Another benefit, you won’t have to put pressure on employees to do a job they may not be comfortable handling.

Read more: 5 Ways to Improve Internal Accounting Controls and Oversight in Your Business

2. You’re concerned about your data security.

Indicators: This should be a top priority. Have you ever heard that your security is only as strong as the software you use and the servers or networks where you store it? If you’re concerned that your systems are not up to par, then it’s time to consider outsourcing your accounting to professionals.

Warning: Failing to maintain high levels of security can not only hurt your business but can have negative impacts on your clients. By storing your account details on a less-than-secure server, you risk hackers accessing the system and ransoming — or even worse — using or selling your data.

Solution: Outsource your accounting to a company that guarantees secure data storage. Meaning your accounting team should be implementing the most up-to-date encryption technology and software so that you can have peace of mind.

Benefits: Your data is much more secure, and any risk of financial information being compromised is now significantly decreased. An outsourced team of experts can also help to reduce your overhead costs because you will not have to invest in high-tech security and bookkeeping software.

Read more: Evaluate These 5 Internal Controls to Protect Your Business

3. You’re experiencing delays in payroll and accounting.

Indicators: It’s vacation time again, and the one member of your staff who knows how to deal with the accounts is taking a week off. Does your accounting suddenly grind to a halt? If you begin to backslide on your accounting and payroll every year at this time, you need outside help.

Warning: Not only a problem for you as a business owner, but it will also create difficulties for your employees who are counting on their paychecks.

Solution: Outsource some or all of your accounting and payroll. You may not need to outsource everything; some remote accounting services will work alongside your staff to help them with finance functions as they need it.

Benefits: Outsourcing your accounting and payroll makes sure invoices and paychecks are always paid on time, keeping you from dealing with angry clients or disgruntled employees. You will always have peace of mind, even when staff members you count on are on vacation or out sick.

4. You’d be worried if you received an IRS audit. 

Indicators: All your documents, invoices, receipts, and payroll information is in a filing cabinet, gathering dust. If you were to receive an IRS audit, can you be sure you’d find the necessary documents easily? If not, you must consider outsourcing your accounting.

Warning: If your accounting and payroll information is disorganized, this can cause serious problems. Documents may go missing or information may easily be stolen or changed, which leaves you vulnerable to IRS actions and penalties.

Solution: Outsource your accounting and payroll to a professional remote service. By doing so, this ensures that all your data is stored in an organized fashion, making it easily accessible whenever you need it. Should the IRS audit you and require you to hand over certain information, your outsourced accounting service will be able to provide the exact data you need when you need it.

Benefits: With an accounting team, there will be no more worrying about how to handle an audit. There won’t even be a need to search for files from several years ago while wasting time in the process. When you outsource your accounts, the possibility of an audit will no longer be equal to stress.

5. You’re scaling your business.

Indicators: Every business owner’s dream is for a successful company, with increasing growth and cash flow. When you’re ready to scale your business, this is the perfect time to outsource your accounting.

Warning: Don’t try to take on too many roles when your business is expanding. This is the time you need to focus on doing what you do best—running the company.

Solution: Make the most of outsourced accounting services to free up as much of your time as possible. Allow yourself one less thing to worry about at a time when everything is moving quickly.

Benefits: Outsourcing your accounting and payroll while you’re scaling your business will allow you to focus your energy on company growth and planning, increasing revenue, boosting your brand image, reinforcing your relationships with customers, and achieving company goals.

Why Choose Signature Analytics?

Here at Signature Analytics, we have been providing small and medium-sized businesses with outsourced accounting services since 2008. We have given hundreds of companies high-quality accounting solutions from our team of professionals, including; experienced accountants, controllers, and CFOs.

We enable businesses to receive superior services at a lower cost than hiring in-house accounting employees. We can work to complement your existing staff, or we can handle your entire finance and accounting functions.

Don’t wait until it’s too late to outsource your accounting. Doing so can cost you valuable resources and could ultimately result in the downfall of your company. Contact Signature Analytics today and let us provide you with an accurate, safe, and cost-effective outsourced accounting solution.

Mergers and acquisitions are a common and occasionally disruptive feature of the corporate landscape these days. Some mergers and acquisitions even transcend the business world – think about the reaction of many Marvel fans when they learned that Disney was acquiring Marvel Studios.

Although a merger and acquisition (M&A) involves the transaction of making two companies into one, a merger is different than an acquisition. These terms, often used interchangeably, have clear differences that you should understand before going through the M&A planning process.

An acquisition occurs when one company buys another company and obtains more than 50% ownership. Legally, the original company (target company) no longer exists and is absorbed by the acquiring company. A merger occurs when two companies, usually of equal size, sign a contract to move forward as a single entity. Each company surrenders its stock, which is replaced with new company stock. Mergers can provide benefits for both companies — like cutting costs, increasing profits, and boosting shareholder values.

What are the Different Types of M&A Transactions?

There are several different types of M&A transactions, including:

Vertical Mergers
A vertical merger occurs when two companies that are operating at different stages but share the same industry combine. An example of this would be a pottery store taking over a ceramics factory. This deal increases synergy in the process and will allow the pottery store to gain more control of the ceramics process and grow the business. The purpose of a vertical merger is to secure a consistent supply of goods, increase efficiency, to save on costs, and to increase the profit margin.

Horizontal Mergers
A horizontal merger occurs when one company takes over another company that produces or offers the same products or services and is at the same stage of production. Typically, the two companies are in direct competition with each other. For example, when Hewlett-Packard merged with competing computer hardware producer Compaq – a move that ultimately helped put HP at the top of that particular industry. The purpose of a horizontal merger is to eliminate competition, increase market share, and boost revenue.

Concentric Mergers
A concentric merger, also called a congeneric merger, happens between two companies that are complementary to one another, but not directly competitive. An example might be a company that sells rock climbing helmets that merges with a company that sells rock climbing shoes. The purpose of a concentric merger is to offer a better service to customers, help the company diversify, and increase profits.

Conglomerate Merger
A conglomerate merger involves the combination of two different companies that are operating in different industries, offering various products and services, and are operating at different stages. The recent purchase of Whole Foods by Amazon is a good example. As businesses go, the two could not be more different, but the merger seems to have benefitted both brands, as well as their customers. The purpose of a conglomerate merger is to diversify industries and lower investment risk.

Why You Need to Reprocess Your Financials After an M&A

An essential part of the integration process is reprocessing your company’s financials after an M&A is complete. It can be a useful means of finding new value in the new company. This type of reorganization allows all the business units from the two companies to be united and standardized in a seamless process.

If you are interested in merging your company with another, here are five critical steps to pulling off a successful merger:

• Develop a statement of profit and loss: Don’t underestimate the importance of an accurate profit and loss statement. You should have an annual or quarterly snapshot of your revenue, costs, and expenses.
• Understand your company’s strengths and weaknesses: It can be a challenge to assess the weaknesses and strengths of your company before the M&A process begins. Ask yourself: What does your company do well? What areas need improvement? Be honest and upfront about the areas where you and your business need to improve and what hope you have for the future.
• Research the company that is acquiring you beforehand: Make sure to do your due diligence ahead of time —search the acquiring company’s website or publications and talk with their employees. You want to have a full understanding of the acquiring company as you begin the process. Why? This company is going to have a considerable influence on how your company runs in the future. Are you interested in maintaining your legacy after the M&A? Ask past sellers if their legacy was left intact or overhauled after the sale.
• Considering several different options: While it’s smart to consider the outward appearance and impression of the organization, it’s also crucial to think about the underpinnings and how they work. You should be able to put together a solid understanding of what the new company will look like after the M&A, including the new company culture and the individuals within it. Think about the daily processes of running the company and how these will change as well.
• Make the structure fit: You might have developed a detailed plan on how you envision the new company should be structured. Try to remember you will likely need to review that plan multiple times and make necessary changes after the deal closes. Doing an ongoing review enables you to confirm which areas are sound and which need to be reconfigured and refined, including outlining new org charts, writing updated job descriptions, and mapping out how things will operate. This may change during the M&A process, but you will have a vision and roadmap of how things fit together prior to the merger.
• Be open to the unknown: No matter how much forethought and strategic financial planning you put into the M&A, it is unreasonable to expect the organization to run perfectly after the merger. For almost all M&As, but particularly with vertical mergers and conglomerate mergers, this is entirely normal. However, that doesn’t mean you have to redesign your whole system from scratch when a challenge arises. You do need to encourage your team to indicate and discuss problems when they arise. But you do need to encourage your team to indicate and discuss problems when they arise. After you’ve completed one or two financial cycles, it’s a good idea to conduct a formal assessment. Doing so will illustrate what condition your financials are in and where more changes should be made.

What are the Steps to Streamline Financials in the M&A Process?

Integrating the financials after the M&A is a crucial part of the process. Finances can get tricky when you combine two companies, so you must ensure financial controls are in place. Be proactive and plan out the following steps.

• • Create a timeline: Develop a timeline to show which activities need to be addressed. Provide deadlines for when they should be accomplished. For example, in the first week following the M&A, establish benchmarks, identify key personnel, and review bank relations. By the end of the first month, meet with management, distribute a code of ethics, and address any employee concerns. Within the first six months, aim for full integration of IT systems, established reporting conventions, and identified high-potential individuals. If you don’t have these things done according to your timeline, don’t panic. Adjust accordingly and make sure you come back to them.

• • Evaluate finance and accounting personnel: One of the first things an acquiring firm should do is assess the skills and capabilities of the financial team. Doing so will help determine which members can stay, which need to be reassigned to a new department or position, and who needs to be let go. This process is also a good time to address any employee concerns and questions. The remaining staff will be entering a strange new world and will look to you for guidance and assurance. Management should meet with the team as soon as possible and communicate everything about the M&A.

• • Safeguard business assets: When two companies merge, members in the financial departments should identify and safeguard existing assets and ones that have been acquired. This process also involves assessing any potential areas of concern.

• • Ensure the adequacy of financial controls: First, management should assess financial controls to ensure that they are compliant with regulations and laws. The regulatory framework and its operations must be thoroughly examined. Draw up a list of all the scheduled authorities, including areas such as hiring and firing, investment decisions, bank mandates, etc.

• • Review IT systems: It can be a big challenge to integrate two or more different IT systems, and the process can be tricky. In some cases, it may not even be possible, and an entirely new system may have to be implemented. It’s critical to understand and assess the current systems’ strengths and weaknesses. The acquiring company should also identify the existing and future state of the IT architecture.

M&As require close attention to contracts and due diligence. It is equally important to maintain communication and transparency throughout the whole process to build trust with all parties involved, from stockholders to employees. Reprocessing your financials after a merger will help you to integrate business operations effectively and achieve new, streamlined processes throughout the organization.

We Can Help

Contact us if you need help with strategic financial planning after an M&A. Signature Analytics is an outsourced accounting firm providing ongoing accounting support and financial analysis to small and mid-size businesses.

Every business is different, but one thing that remains consistent are the barriers that every company faces in terms of its ability to grow. Barriers of growth are all of the obstacles that stand in your way: from your customers (or lack thereof), to your employees, the capital your company does or doesn’t have access to.

If you aren’t sure whether you have any roadblocks preventing your business from scaling, check out these 5 barriers of growth we often see in companies and how to break through them:

Cash flow visibility

One of the biggest barriers of growth is cash flow visibility. If you can’t see whether your company is generating more cash than it’s spending, you’re either in trouble, about to be in trouble, or beyond trouble.

Cash flow issues can result in late payments, which then rollover into additional interest payments and penalties that eat into your profits.

A company’s performance is tied to its cash flow, therefore, insight into your cash flow not only ensures that your company has enough money to cover basic operating expenses, including payroll and monthly utility costs, it facilitates and supports growth. Not only is it critical that you understand your cash flow, your company should take a proactive approach to ensure cash flow never obstructs your growth.

Lack of strategic planning and vision

Where do you see your company 9 months from now? 3 years? 10 years?

A company without a vision not only fails to grow, they will fail to survive. As the saying goes, “if you fail to plan, you plan to fail.” Companies who lack strategic planning often lack structure as well. Disorganized environments can promote stress among your team and, again, lead to turnover from all around unhappiness or layoffs due to underperformance.

A strong strategic plan will help a company to establish relevant goals which allow it to achieve its vision. A strategic plan should include both short and long term goals, with each goal clear to everyone in the company and supported with actionable to-dos and targets.

Creating a strategic plan will help eliminate barriers of growth by giving you foresight into any problems and allowing you to prevent them before they occur.

Your team

You’re only as strong as your weakest link. Therefore hiring employees who aren’t, or can’t pull their weight will affect the growth of your company. When members of your team are forced to pick up the slack of their colleagues, the outcome almost always results in turnover. Companies with high turnover have a harder time recruiting talented employees to fill open positions.

Not only is it important to the growth of your company to hire knowledgeable, experienced, and skilled professionals, but your employees should also be provided with training and leadership to support their growth and allow them to be successful.

Poor customer service

According to Forbes, “businesses are losing $62 billion per year through poor customer service.” So unless you’re Dick’s Last Resort, poor customer service is probably not built into your business model.

Bad customer service can be detrimental to your company in many ways. It can drive down profits, damage your company’s reputation, and can cause you to lose both your current and future customers. A poor reputation will also deter top talent from wanting to work for your company. And since nobody wants to deal with an unhappy customer, you may also lose your employees.

Customers want consistent, timely, and personalized service, therefore providing exceptional service should be a top priority. By talking directly with your customers, promptly addressing problems, and listening to your employees, you can ensure that poor customer service will not be a barrier of growth within your company.

Finding new customers and keeping them

For every one customer you lose, you need two more to support the growth of your company.

So how do some companies continue to scale while others either remain stagnant or simply fail? Because successful companies know their target market. Knowing your customers means engaging with them to better understand their wants and needs, what their pain points are, and how your company can provide the solution.

Maintaining and sustaining growth means finding new customers. And finding new customers requires spending money. This may involve traveling to face-to-face meetings, establishing a budget for online advertising, or investing in training to ensure your sales team is knowledgeable on your product or service.

If your company seems to be losing customers, you need to find out why. Setting actionable goals to decrease and prevent churn will not only help your company retain customers, but keep them happy and returning.

Signature Analytics can work with your team to prevent your company from hitting any barriers that could stand in the way of your growth. Find out how by requesting a free consultation today.

Download our essential guide to what successful businesses should expect out of their finance and accounting department.

An essential guide to what successful businesses should expect out of their finance and accounting department.

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In case you missed them, below are the most popular articles in 2016:

#1Signature Analytics Named an Inc. 500 Fastest-Growing Company with Over 866% Growth!
Signature Analytics is thrilled to be named an Inc. 500 Fastest-Growing Company! Inc. ranked the top 5,000 fastest-growing private companies in the nation according to percentage revenue growth over a three-year period. The top 10% of companies, the Inc. 500 will be featured in the September issue of Inc. We are honored to be an Inc. 500 winner! Read this post →

#2Avoid the “Inventory Issue” and Learn How to Calculate Your Ratio
Fortune features Signature Analytics’ article on company inventory turnover ratio. The article covers the following topics:

#3Signature Analytics Appoints Peter Heald as Chief Executive Officer
Peter Heald has joined Signature Analytics as Chief Executive Officer. Pete is an innovative executive with over 20 years of experience in developing leadership teams, driving profitable revenue, and growing companies. Pete’s background includes investment banking and a variety of leadership positions and experience in service firms locally and nationally. Pete’s impressive resume, along with his passion for growing businesses, make him an excellent fit for Signature Analytics. Read this post →

#4Top 6 KPIs for Accounting [INFOGRAPHIC]

Key performance indicators (KPIs) help measure the effectiveness of accounting within your organization. By tracking KPIs, you can better understand the condition, sustainability, and trends within your accounting department and keep a close handle on your business’ financial health. Read this post →

Many owners and managers are hearing about Part-Time CFOs for small to mid-sized business, so what are the benefits of such a solution? Let’s discuss the why, what, when, as well as the goals, for a Part-Time CFO, also known as an interim, fractional, or outsourced CFO.

Why Use Part-Time CFO Services?

Hiring full-time employees is very expensive and can be risky. With the advent of cloud-based tools that make collaboration easier, companies can now have ready access to a Part-Time CFO resource. Accounting departments are typically busy and at capacity with the day-to-day tasks of the business. A Part-Time CFO offers built-in efficiencies in purchasing the skill sets and bandwidth needed at any particular time.

What Do You Get with a Part-Time CFO?

With a Part-Time CFO level resource, there is increased oversight of the accounting department. Through the development and refinement of policies, procedures, and technology, a company can benefit from increased efficiencies, reduced timelines, and added scalability. The company also benefits from a higher level analysis with the additional reporting metrics of projections, profitability, and scenario planning. The CFO role improves the communication with lenders and investors and supports the operational functions of the business with robust data reporting and metrics. In small to mid-sized business, they will often be very hands on, and possess excellent communication skills.

When Should You Start Part Time CFO Services?

There are some distinct indications that it might be time to consider a CFO role for your company. If timely and accurate financial results needed to make business decisions are consistently delayed or inaccurate, it is time to add additional bandwidth to the department. This can often be caused by rapid growth, or the number and complexity of transactions increase. Lenders, investors, customers, and vendors may request detailed and specialized reporting, or when the engaged CPA firm may be requiring additional schedules and data. If the company is preparing for some type of exit, succession or transaction, having the CFO resource available to assist and guide the due diligence activity can ensure a timely and accurate process.

Final Thoughts

The goals of hiring the CFO function can usually be summarized by quantifying and reducing risk to the organization, lowering costs to increase profitability and cash flow, and ensure that the long term company strategy is executed and results realized. By utilizing a Part-Time CFO solution, business owners and managers can realize these benefits at an earlier stage and more cost-effectively than waiting for a full-time CFO role to develop.

We Can Help

If your business could benefit from Part-Time CFO services, contact Signature Analytics and we would be happy to discuss our outsourced CFO services. We will set up a consultation to learn about your specific business needs and can discuss the best outsourced CFO services for you!

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As a business owner, one of your goals is to maximize your multiple and to do this you must know your company’s market value. But how do you acquire this information? We recently sponsored a seminar with InfoVera™ that focused on Total Enterprise Value Opportunity (TEVO) for business owners. InfoVera is a Market Value Reporting Agency and was founded to help businesses realize their company’s market value.

Through InfoVera, a company can learn their TEVO Score. InfoVera Co-Founder, Sandy Burton explains, “First and foremost, a business owner should always know the value of their biggest asset and what factors will improve or decrease it. And it starts with answering the question “what’s my multiple?” The TEVO Score is the simplest and most straightforward mechanism to answer that question.”

What is your TEVO Score and what does it say about your business?

Your TEVO Score is acquired through a predictive analytics engine and will quantify the opportunity gap between your company’s current and potential value and provide insight on how to increase value. After a business learns their TEVO Score, InfoVera can refer them to partner with companies such as Signature Analytics, to provide financial analysis services to help companies turn insights into actions.

The TEVO score has the same scale as your credit score and, like FICO, it is comprised of 5 weighted factors:

1. Financial Analysis
2. Business System and Processes
3. Base Business
4. Management Team
5. Opportunities

What can you do to improve your TEVO Score?

Since your TEVO Score gives you insight into your company’s past, present, and future, you can use it as an opportunity to analyze future opportunities to increase company value. You need to look at where the company is going, and make that visible to outsiders looking at your business for investments, partnerships, potential buyers, etc. Signature Analytics can assist in improving your TEVO Score by providing the actionable financial analysis you need to strengthen business systems and processes, diversify customers and sales force, strengthen the management team, and look for opportunities for growth, increased margins, integration, and expansion!

How does your TEVO Score help maximize your business valuation?

You can’t maximize your business value if it is unknown! Your TEVO Score provides a standard way to make your multiple known and through that, the market value of your business known. This tool provides you the knowledge of your current valuation, potential future valuation, and the opportunity gap in-between. When you increase the understanding of your business and know the factors that impact your multiple, you are able to take the necessary actions to maximize your valuation.

We Can Help

If your business is ready to learn its market value and TEVO Score, contact InfoVera. They can provide your company’s TEVO score at no charge or with additional information develop your Marketability Assessment which will validate your score and provide areas of focus for you to improve your market value. To improve your TEVO Score, contact Signature Analytics! Our goal is to provide the highest quality accounting and finance expertise so you can make the best possible decisions for your business based on accurate accounting and financial analysis!

CFO, VP of Finance, Controller, Accountant, Bookkeeper, Assistant, and Financial Analyst: these are often the titles you will encounter in an accounting and finance department. What are their responsibilities within a business and how do they help you grow? What is the value of an outsourced accounting and finance team?

Hiring Staff Time Consuming and Costly

Accounting transactions allow you to invoice and collect from customers, order and pay for goods and services, create paychecks, generate financial reports, and analyze business operations. In start-up organizations, these transactions are typically done by an administrative person who may or may not have accounting experience. Often, the bank statement is the most reliable and useful financial report – you’re either in the red, or (hopefully) the black.

As the business grows with more customers, suppliers, people and operations, the volume and complexity of transactions also increases. The ability to clearly see the health of the business becomes more difficult. This is often where a Bookkeeper would be added to the team. They may or may not have formal training, but they do understand the language of accounting transactions and how to get basic financial reports for tax, bank, and management purposes.

Accountants are usually added when more people are needed to process transactions. Accounts Receivable (A/R) and Accounts Payable (A/P), and Payroll are all areas where accountants or clerks with more specialized skills are necessary. Typically, there is a senior role to oversee the numerous functions and responsibilities. This may be where you start to hear the words “accrual,” “account reconciliations,” and “month end close process,” and you are likely outstripping your initial accounting system.

The next level will entail a Controller, which is when the full featured accounting department arrives. Controllers take on more extensive financial reporting and analysis, prepare basic budgets and forecasts, develop more robust internal controls and processes, and manage the outside accounting firm relationship. This is when you hear the words “GAAP,” “review,” “audit” and “compliance.” There are robust procedures in place to rely upon the numbers being reported, and analysis becomes a larger function overall.

Here is also where a Financial Analyst or VP of Finance can help offload some of the detailed business intelligence needs that may arise. These roles are often the first that comprise the finance team, requiring more interaction between lenders and investors due to increased complexity in the business model.

The final step is the addition of the CFO where the focus is to the future to strategize where the business is going and how best to maneuver the road map through goals and initiatives. The CFO focuses on strategic planning, interaction with the executive team, forecasting and projections, creating financial leverage, and accessing capital markets. 

Consider Outsourced Financial & Accounting

If any of this is intimidating to think about as your business grows, consider relying on Signature Analytics to help you with ANY of these finance and accounting competencies. The benefit of relying on us is that you can pick and choose what you need, when you need it. You don’t have to go through the process of interviewing, hiring, and onboarding new staff.

Our talented, experienced accountants and financial analysts can complement your existing accounting employees, or act as your entire accounting department (CFO to staff accountant). We provide the ongoing accounting support and financial analysis necessary to more effectively run your company, analyze operations, and guide business decisions to help you grow. Contact us today.