Outsourcing CFOs, forming cash flows and budget planning, pricing and costing

All-round financial operations are required for the organization’s economic conduct to be effective and correct.

Proper cash-flow management, control of the pricing policy and using an external source for the organization as a controller; as a solution to meet the strive for decent conduct in the long-term perspective.

Our financial team of experts offers a variety of solutions for effective management, understanding, and orientation in the organization. Alongside finding solutions and the formulation of strategies that will greatly contribute to enhanced and better business-economic conduct with a future vision.

Outsourcing CFOs

The role of an outsourced finance manager varies according to the current needs, challenges or goals of the organization. Below is a list of some of the most common outsourcing services through the CFO:

• Financial Strategy: Focusing on a long-term strategy for the organization, specializing in long-term planning, and deciphering how to take the organization from where it is currently to the point it aims to reach.

• Short-Term and Long-Term Forecasts: A good financial forecast serves as an operational and detailed roadmap for how the organization can achieve its goals.

• Financial system design and planning: If the financial systems are unable to keep up with the growth of the organization and don’t align with the operational systems and business processes. It might be time to re-examine them and to consider the design of combined systems that will work best for the current and future growth of the organization.

• Preparing an annual budget: The budget is the guide to the day-to-day operations of the organization; it helps guide financial decisions in the annual review while maintaining on the organization’s track to achieve its goals.

• Interpreting financial statements: Analyzing reports and accessing the main points in a way that will complete the business needs. This operation provides the organization with the opportunity to ask questions, stay aware of what’s going on, and get the information it needs.

• Capital Raising: Provides financial statements and help with due diligence, help build a plan for the organization’s capital composition ratios, such as recommending debt integration for equity, which will serve its purposes the best.

• Cash Flow Analysis: Solving cash-flow problems is more complex than “simply selling more”. It requires an understanding of how money and budget are managed; as well as the expertise required to know which expenses are essential for an organization’s growth and which can be released or changed.

• Making Cost Cuts: Unlike the organization’s home staff, outsourcing has extensive experience with a variety of organizations in the industry in which the organization operates. The complete objectivity comes as an advantage, without any biases to get the work done, without hidden interests to promote or to cancel one or other actions.

• Mergers and Acquisitions: Whether the transaction includes a merger, acquisition or partial sale. The use of outsourcing services has clear advantages: initial analysis and reporting, forecasting, financial function stabilization, consulting key members during the transaction process, preparing relevant documentation and more.

Budget Planning

When a crisis occurs and it strikes the organization, an important step is to change and adjust the budget. The cash-flow budget estimates the future revenue and expenses of the business. By developing cash-flow forecasts for several months ahead, it is possible to estimate when an organization will be short of funds and to plan the proper steps to take in advance, such as promoting or changing staff assignments. The cash-flow budget is also the most demanded after the general business budget when seeking funding from another bank or investor.

By implementing a few simple steps, you can reach far-reaching conclusions:

1. Establishing a time frame: Determining the times when a financial crisis will have the most severe impact on the organization and its cash-flow.
2. Estimating Sales Units: Estimate the number of clients or sales units that can be expected during the forecast period, and sorted them by the various aspects of revenue.
3. Estimate sales revenue.
4.  Estimate the timing of income: Calculate when the revenue from these sales will be paid into the organization’s account, considering deposits, cash payments or credit card payments.
5. Adding expenses: Identify and add all expected expenses during the forecast period, considering and separating variable and fixed expenses.
6. Calculate surplus or deficit.

Pricing and Costing

Price is the value of a product or service that is the result of a complex system of calculations, research, and risk-taking ability. Pricing strategy considers sectors, ability to pay, market conditions, competitors’ operations, trade margins, and input costs.