Outsourced CFO Options

STEP 1

The first step in any Outsourced CFO option is becoming intimately familiar with the agency’s current financial policies, procedures, managerial practices and operating results. To do this we conduct a review which includes:

• Historical P&L and balance sheet (last 3 years and YTD

• Representative client programs including new business proposals and budgets

• Agency pricing practices • Staff allocation reports and current planning process (capacity, utilization, realization)

• Current organizational chart and senior role descriptions

• Current client and freelance contract templates

• Commission and incentive plan documents

• Most recent strategic growth plan or annual agency review presentation

• Preliminary review of agency operations

OPTION 1: Focus on Operational Strategies

This option has the CFO focused solely on strategic planning, oversight and advice. Option 1 includes a bank of hours for:

• Participation in weekly senior leadership meetings regarding ongoing issues and activities

• Weekly meeting with CEO or President to discuss major upcoming decisions and issues

• Counsel on ad hoc issues as they arise • Development of a strategic growth plan (if one does not exist)

• Development of aspirational staffing architecture (if one does not exist to guide hiring)

• Revenue and profit projections to guide staff resource decisions

• Monthly measurement of agency results as compared to key metrics

• Quarterly review meeting to evaluate agency progress against the budget and strategic plan

• Annual pricing review

• Annual staff compensation and bonus review

OPTION 2: Operational Strategies & Key Processes

This option includes everything in option 1 and oversight of key processes that drive agency profitability:

• Client budget assembly and negotiations process

• Client procurement and contract negotiations (separate from pricing)

• Staff allocation monthly planning and weekly monitoring process (forecasting with management team and variance to actuals)

• Review of all billing before distribution to client, and careful review of write-off of professional fees.

Option 3: Operational Strategies, Key Processes & Oversight of Finance Department

Option 3 includes all of the above plus oversight of key accounting functions and personnel:

• Cash management (payables, receivables, cash flow)

• General Ledger (P&L, balance sheet, period close process, revenue and productivity reports)

• Billing process

• Day to day oversight of the accounting department staff