How a Cash Flow Consultant will revolutionize your business

Cash Flow Consultants, sometimes called CFOs On Demand or fractional CFOs, started to appear in the United States in the 1990s in response to the dot com bubble. Many of the start-ups in Silicone Valley needed the strategic advice and financial knowledge of a CFO, but couldn’t afford the salary and benefits of a full-time employee. Unlike Accountants or CPAs who focus on tax planning and compliance or bookkeepers who maintain income statements and balance sheets, the role of a Cash Flow Consultant is to analyze the financial data and work with the business owner to create a strategic financial plan that achieves the company’s mission. This strategic plan will ensure that the business maximizes its financial advantages and minimizes financial risk.

Today, Cash Flow Consultants assist small to medium sized businesses at any stage of the business life cycle achieve financial success. Even if you employ a small accounting department, a Cash Flow Consultant can be a game-changer for your business.

The Consultant will start with a meeting with the owner to discuss the overall business mission and goals the owner wishes to achieve. During the first few meetings, specific targets are created. The Consultant will then analyze the financial data to determine the best plan of action to meet those targets. A visual representation of a business’s Key Performance Indicators is created to easily show the owner whether a business is on track to meet financial goals, both short-term and long-term.

To ensure targets are met, the Consultant develops and implements a cash flow forecasting and monitoring system and will meet with the business owner on a monthly basis to discuss the financial health of the business, discuss the prior month’s successes and learning experiences, and determine the focus for the coming month. Many Consultants are also available to discuss strategic actions on a weekly basis with the business owner to be a “sounding board” for new ideas and how they will impact the company’s finances.

The Consultant builds a budget and forecasts cash flow and profits to monitor the progress of the business. To ensure targets are achieved, the Consultant will develop systems for the business owner to create efficiencies within the business’s accounting department and ensure cost-savings and proper cash flow management occur on a day-to-day basis.

The results for the business owner are more cash in the bank, higher profit margins, and more take-home pay. If you are interested in learning more about how a Cash Flow Consultant can help your business, please schedule a meeting with us today.