Our Services

For many companies a full time CFO is out of the question but vitally needed to insure the future success of the company. Outsourcing allows you the availability of proven, seasoned professionals on a Time & Materials basis. You only pay for the time and services you need and require. Contact us for a no obligation consultation on how we can be of service to your company.

The CFO is a critical contributor and adviser to your company’s leadership, and must be able to provide management guidance to all administrative and operations functions. The CFO must be a hands-on manager of the accounting, treasury, finance and cost accounting activities. In addition the position of CFO manages the planning process and provides easy to understand reporting of financial results and projections, and constantly look for ways to improve YOUR COMPANY by collaborating with the CEO and other members of the management team.

Forensic Accounting – Fraud Detection
A recent AICPA study of 950 case studies on Fraud found the following:
1. 7% of Revenue is lost to Fraud
2. 25% of the losses are over $1 million, 63% are over $100k
3. 90% are misappropriation of assets
4. 27% were employees acting in a company role, but for their personal benefit
5. 25% involved some form of corruption
6. Banking & Financial services industries (15% of the Study) had the highest fraud with a median $250k loss per fraud
7. 45% of the discoveries were through “Tips or Complaints” from insiders
8. Companies with “Anonymous Hot Lines” had a 60% reduction in losses
9. Internal Audits plus internal controls accounted for 55% of fraud detection
10. Owners & Executives were the lowest offenders, but had a median loss of $834k per loss
11. Fraud in the Legal Dept, had a median loss of $1.1 million per loss
12. 2/3 of the frauds were done by perpetrators acting alone
13. More than 50% of the victims conducted background checks on their employees

Click here for a list of common fraud indicators

Financial Analysis
While the basic financial statements – balance sheet, income statement, and cash flow statement – will provide you with valuable information, there are a number of other types of comparisons and analysis you can perform that can give you insights into how you can better manage your business and improve your profitability.

Analysis of the Composition of the Balance Sheet
The balance sheet can be broken down into groups of accounts. A comparative analysis of the percentage relationships of the different groups of accounts that make up assets, liabilities, and equity can serve to detect, control, and manage trends or shifts in the composition of your net business resources.
The asset side of the balance sheet can be broken down into:

  • Cash and cash equivalents, such as deposits and liquid marketable securities,
  • Realizable assets, including short-term investments, trade accounts receivable from customers or clients, and other receivables,
  • Inventories, and
  • Fixed assets.

The liabilities and equity side can be separated into:

  • Short-term liabilities (payable within one year),
  • Long-term debt (payable beyond one year), and
  • Owner’s equity.

Vertical Analysis
A vertical analysis can then be done by calculating the percentage that each group of assets represents in terms of total assets, and that each group of liabilities and equity represents in terms of total liabilities and equity.  A graph of these relationships may be useful for visualizing the relationships.
This vertical analysis will provide you with an idea of where your resources are invested.  If your business requires a significant portion of your resources to be liquid, for example, your analysis will probably show a strong percentage in cash and cash equivalents.  If it does not, you may need to evaluate ways of freeing up more resources.  If the level of inventory you carry is a significant aspect of your business, you will probably want to closely monitor how much of your resources are invested in inventory.

On the liability side, if you have a relatively rapid turnover of working capital, current liabilities will probably be significant.  If your business is more capital intensive, with a significant investment in fixed assets, your long-term debt may be a more significant portion of total liabilities.

And while the amount of owner’s equity will vary depending on how your business is financed, how profitable your business has been, and how you distribute earnings, owner’s equity should be maintained at a level that is appropriate for the financial health and solvency of your business.

Static and Dynamic Analysis
A static analysis of these percentages at any given point in time can be useful.  But a dynamic analysis, comparing the evolution of these percentages from period to period can be even more useful in seeing overall trends, and thereby knowing how resources are being allocated, what type of debt is being incurred, and how owner’s equity is being affected by operations.

This type of dynamic analysis can be performed by choosing a certain period or year as a baseline (N), and then comparing the percentages for period N with the percentages for the following period (N+1), or with the percentages from as many other periods (N+2, N+3, N-1, N-2, etc.) as you wish, in order to see the trends over the periods in which you are interested.