Article Number : 5031 |
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| Date | 11/3/2009 8:46:48 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=5031 |
| Abstract | By Emily Hooper PHOENIX—More than ever, today’s business owners are looking for financial guidance, as they try to streamline their operations to cope with an unpredictable market. Beyond Quickbooks and a CPA is B2B CFO, a firm geared toward... |
| Article | By Emily Hooper PHOENIX—More than ever, today’s business owners are looking for financial guidance, as they try to streamline their operations to cope with an unpredictable market. Beyond Quickbooks and a CPA is B2B CFO, a firm geared toward helping start-up, small and midsized businesses find financial clarity and set goals. Founded in 1987, the part-time CFO company services 43 states in the U.S. B2B CFO is a place to outsource a chief financial officer for companies without an in-house CFO. With a CFO working for the company, owners have more time to focus on the sales floor, rather than being cooped-up in an office, working in accounting and human resources. “Most business owners are generally sales types,” said Tim McLellan, a B2B CFO who has been providing his expertise to the flooring industry since 1999. “Instead of being in an office, they can spend more time in front of customers and generating revenue.” A CPA may not be enough to fulfill a company’s financial needs, he added. Although they share the common denominator of numbers, a CPA cannot perform the same functions as a CFO. Firstly, B2B CFOs have an average of 25 years experience planning, executing and forecasting company finances. An experienced CPA has spent his career managing a CPA firm. Secondly, a CFO should be accessible 100% of the time, but a CPA may be unreachable for several months during the height of tax season. It is not efficient or cost-effective for a CPA firm to perform the same functions as a CFO, McLellan said. Lastly, there are certain aspects of a CFO’s duties that cannot be done by a CPA. For example, a CPA is required to maintain independence from the client during financial audits and reviews, but the CFO is an integral part of that process. He noted these are ethical and legal restrictions to the role of a CPA for which a CFO is suited. McLellan pointed to his CFO experience within flooring, making him a unique resource to the industry. From 1999 to 2006, he was the CFO of Interface’s Re:Source dealer network, dealing with manufacturers and distributors. Now, he generally works with flooring dealers and various manufacturers generating annual sales figures of $2 million to $50 million. Start up companies or newly purchased businesses can benefit from a CFO, McLellan said, highlighting a recently acquired Fortune 1000 company that was sold without any administrative functions, such as accounting, payroll and benefits or IT hardware. “I worked with the new owner to install all of these new systems in his business,” McLellan said. “The new firm’s computers and software system were up and running within 120 days after the sale. I also worked with the owner’s bank to get $2.5 million in loans to fund the business, and today it has generated $3 million in cash to the new owner.” Bob Noe, president of Pacific Solutions, spoke very highly of McLellan’s knowledge and services. Pacific Solutions is a current client of McLellans’s, and regularly recommends his services to its own clients. “He possesses unique skills in the flooring industry,” Noe said. “What makes him special is that he works with many different flooring companies. His practical knowledge of business practices and financial knowledge sets him aside.” To contact McLellan, call 404.915.5539. |