The CFO'S Perspective

Is It Time to Downsize Your Business?

Downsizing is never a light topic to broach, but for businesses that are financially compromised or experiencing a reduction in demand, it is important to fully understand before any strategic planning can begin.

Downsizing is often tied to a reduction in headcount. Headcount is more than just a number, which is why downsizing should be approached with the utmost care and consideration. Knowing why a company should downsize, what kind of risk is associated with doing so, and how to avoid common mistakes is key to increasing the likelihood that your reduction efforts will be successful.

Use this guide to get a better understanding of the implications of downsizing and help inform your strategic planning as it relates to both maintaining your business and preparing it for sale.

Topics: Economic Trends Mergers and Acquisitions Planning Staffing Leadership Forecasting Expenses Profit Margin Assessment Strategy COVID-19

Moving Forward in Finance in a Hybrid Work Environment

As more people begin to get vaccinated, we are eager to return to what life was like in the "before times" to plan vacations, in-person meetings, even concerts and ballgames. When it comes to the workplace, there is no turning back the clock to how we used to do things. Wise leaders will capitalize on the innovations developed during the transition to continue remote operations by retaining the process improvements to be sustainable, regardless of what comes next.

Topics: Finance Planning

Funding your Manufacturing Business - CAMPS Event

To grow in the new market environment, manufacturing companies require funding. To help you better understand the options, CAMPS hosted a panel to cover multiple funding options:

CFO Selections is a proud member of CAMPS and our own Kevin Briscoe recently participated in a panel discussion at a CAMPS event: "Funding your Manufacturing Business."

If your manufacturing company is growing, listen to the insights and options shared by the panel of financial specialists.

Topics: Funding Events Financing

How a Fractional CFO Improves Financial Planning and Analysis (FP&A)

Attitudes around FP&A (financial planning and analysis) are kind of a mixed bag – everyone agrees it is important, but many people do not know what it really entails. As a result, businesspeople form their own opinions about who should handle it and what owning it should look like.

Some business leaders downplay the complexity of FP&A and mistakenly task their accounting and finance teams with this crucial function. This can be a mismatch because many accountants are not equipped to handle this level of financial responsibility and organizational oversight. Alternatively, some business leaders put FP&A on a pedestal and assume its critical role in the success of an organization necessitates a dedicated role.

Topics: Planning Analysis CFO Responsibilities

Understanding Nonprofit Functional Expense Allocation

Nonprofit organizations are required to report functional expenses either in footnotes, the Statement of Activities (SOA), or a separate Statement of Functional Expenses (SOFE). The goal of this functional expense allocation is to illustrate the relationship between program expenses and supporting expenses to better understand how those supporting expenses further the organization’s mission. And while this sounds easy enough in concept, some expenses can be difficult to classify.

To complicate matters, functional expense classifications can change over time. Like a for-profit business, a non-profit organization’s operations can change year-over-year, requiring that functional expense allocations be regularly updated to keep up with current activities. Otherwise, expenses can be misrepresented or fall through the cracks, resulting in misrepresentation of the organization to key stakeholders like grantors, donors, and boards of governors. Management also relies on functional expense information accuracy for strategic planning, making it critical to the day-to-day operation of the organization.

Topics: Non Profit Organizations Financial Reports Expenses