Part time CFO Services

Part time CFO Services

Key Deliverables:

This is divided into 2 sections:

  • A. Key Objectives
  • B. Key Action pointers to Achieve Key Objectives
Key Objectives (Section A)

  • Make the Organization more cash flow surplus and profitable, managing growth - In UAE, International Locations, New locations.

  • Effective FP& A function: Financial Forecasting, Valuation, Preparation of Investor Pack, Ensuring completion of Investors transactions.

  • Monthly closing of books, consolidation, Preparation of Board pack with recommendations for the Ownership. External audit completion.

  • To assess, mitigate, manage risks.

  • To ensure effective processes, procedures, control compliance, checks and balances, leading to better financial discipline

  • Build energetic finance and commercial teams across all locations.

  • Nurture and build effective strategic relationship with Board / ownership

  • Arranging bank finance , restructuring bank finance , loan deferments, arrangement of Stand by LC ( SBLC), LC ‘s

  • Ensuring Vat, ESR , Corporate tax compliance

  • Book keeping of accounting records.

Service Type

Key Action pointers to Achieve Key Objectives- UAE, International locations, New Locations: (Section B)

  • Establishing Financial Benchmarks:

    • a. Setting up mechanism to evaluate every month work in progress (WIP)
    • b. Projects Profitability- Are the projects making money or not
    • c. Pricing strategies
    • d. Strategic cost control
    • e. Monthly closing of books, Generation of Monthly Board pack with recommendations and analysis.
    • f. Completion of External audits

  • Vibrant FP&A Function:

    • a. Financial Forecasting, Valuation,
    • b. Preparation of Investor Pack, Ensuring completion of Investors transactions.

  • To make the Group more cash flow surplus:

    • a. Cash flow actual, Cash flow forecast
    • b. Training to the team.
    • c. Exploring credit insurance.
    • d. Effective Working capital management
    • e. Best usage of funds in transactions and in investment, Mergers and acquisitions, sale and disposal, Expansion.

  • To have effective Processes, Procedures, Controls, Compliance, Checks and Balances :

    • a. Cash processes, Money leakages – Procurement, inventory, services,
    • b. Processes at new locations, start-ups.
    • c. Contracts reviews, Service Processes
    • d. Structuring and review of agreements – JV, New partners, Third party service providers
    • e. Estimation and Bid processes.

  • Risk assessment, Risk Mitigation, Risk Management:

    • a. Collection risks
    • b. Contractual risks
    • c. People risk
    • d. Business risks
    • e. Insurance arrangements

  • Board / Ownership Management:

    • a. Financial and Business advisor to Board/ Ownership on all above Objectives and Actions. - Advising what is in the best interests of the Group.
    • b. Providing executable solutions.
    • c. Implementing the directives from Board / Ownership
    • d. Be an effective listener.

  • Arranging Bank Finance: Arranging bank finance , restructuring bank finance , loan deferments, arrangement of Stand by LC ( SBLC), LC ‘s

  • Vat , ESR, Corporate Tax Compliance: To make the Organization compliant on the above.

  • Book Keeping of accounts: This can be done in quick turn around time.

Managing Cashflow & Business Mayhem

About me - Anand Soni, CPA( USA), CA( INDIA)

  • Group CFO, Financial and Business Advisor, Part time CFO services Provider, Corporate Trainer, 28 years of Experience

  • In UAE for last 18 years, Essentially worked for family Groups., handling UAE and International locations.

  • Have handled Start ups, SME, Incubators, Growing, Established Businesses

  • Have been CFO/ Group CFO for over a decade in UAE , handling diversified businesses in UAE AND GCC-, one business, 10 businesses , related , unrelated - Give me a business and I will handle .

  • To ensure effective processes, procedures, control compliance, checks and balances, leading to better financial discipline

  • Have seen and tackled 2008 Financial Crisis and Covid Crisis.

  • Corporate Trainer , Speaker, Conducts Workshops - Finance, Business, Strategy, Leadership, People topics.

Current Challenges & Mayhem for Businesses: Considerations

  • SME, Start ups, Incubators, Growing, Established Businesses.

  • Business Model Matters- Manufacturing, Retail, Trading , Distribution , Construction, Real Estate, Property, Contracting, Logistics, FM services, Petroleum, Services, Technology

  • Some challenges / Mayhem common for all business verticals, Some are not .

Current Common Challenges & Mayhem for Businesses:

  • Some common and Burning Challenges:

    • a. Cash flow Mayhem Business Mayhem Uncertainty,
    • b. Processes and Procedures, Control and Financial Discipline.
    • c. Risks Assessment, Risk Mitigation and Risk Management, Vat, Corporate Tax.
Common Vibes on Cash flow and Business Mayhem & Uncertainty

  • I am having cash flow problems- Can I get bank finance. OR STILL, CAN I get some short loan/. Hand loan

  • I am looking for a private investor, to tide over my cash flow issues.

  • Inspite of having revenue, I am not making money. My Actual Gross Margins are always less than the estimated .

  • My Debtors are not paying me , while my overseas suppliers do not supply the goods unless get paid full or significant advance

  • I wish I could reduce my costs.

  • Rising interest rates are eroding my profitability

  • I believe I am doing everything right

  • I believe I am not doing everything, not sure will survive next quarter.

Specific solution pointers/ Actions to Manage Business and Cash flow mayhem and uncertainty

  • First and Foremost Mind set change, Ready to change. Change is most difficult and scary

  • Set Priorities- Immediate , Short, Medium, Long term. Who is championing it ?

  • Focus on internal Efficiencies and Effectiveness. , and then go for external help/ funding.

  • 4 Ps- Patience, Perseverance, Passion, Persistence

For many people, change is a scary journey into the unknown…… and many people don’t like to change

Many people know what they need to do to
improve their health, but few behave accordingly
90% “want” to change but only 25% ever do
anything about it

Specific solution pointers/ Actions to Manage Business and Cash flow mayhem and uncertainty- CFO / Part time CFO drives these actions in close coordination with Ownership / Other department heads/ teams

  • Cash flow actual, Cash flow forecast - Where money came, where money went …. Life blood statements . Ensures no surprises and ability to plan and take actions

  • Line by line analysis of each and every item – what, why, how and when . Collections, Payable, Loan liabilities, Expenses, Capital expenses , Statutory compliance payments

  • Consistent monitoring of Cash flow actual and forecast and backed by discussions with all stakeholders in the organization with clear action pointers, and timelines

  • Discussions with External stakeholders- Banks, Suppliers, Customers,

  • Unlocking Cash

    • a. Receivables- overdue, sticky, different strategies, 18 methods
    • b. Payable - Negotiate payment terms, Offer Payment instruments- SBLC, LC, Enter into sole trading agreement
    • c. Inventory: Inventory turnover days, inventory cost, selling old and slow moving items.
    • d. Using surplus cash well.
    • e. Negotiation with Service provides- Rent, Insurance, Suppliers,

  • Pricing Strategies to Increase revenue- Minimum Variable Pricing Model. Limiting factor as the base to do pricing.

  • Differential pricing to get a better revenue share in different regions

  • Projects Profitability

  • Strategic cost control: On every item of cost. Team exercise. Trim the Fat, but, do not get into bones and muscles.

  • Have an accurate, timely monthly financial closing backed with proper analysis and recommendations. Non negotiable.

  • Have an accurate, timely monthly financial closing backed with proper analysis and recommendations. Non negotiable.

  • Consistent monitoring, Remedial actions, Course Corrections.

  • Step by Step

  • Guarded Optimism.

  • Good Listener - God has given Two ears and One mouth to listen more and speak less.

18 methods to Improve collections

  • Accepting PDC.

  • Going to court.

  • Going to chamber of commerce.

  • Not accepting PDC but monthly transfers.

  • To stop the work / supplies in between to recover your dues.

  • To enter in a new order to get your previous dues.

  • To simply follow up.

  • To ask for balance confirmation.

  • Not to do anything and just wait.

  • Deciding the status of the client-do you need them, do they need you, or what is the status of the relationship .

  • To accept Letter of credit mechanism,

  • To accept Letter of credit mechanism with LC discounting.

  • To have cheque discounting / LC discounting facilities with your banks.

  • To engage in barter system, i.e you accept other items / services from clients instead of accepting money from your clients.

  • When to give rebate/ discount.

  • When not to give rebate/ discount.

  • Effective internal management- regular collection meetings, assigning champions, have all legal documents in place from beginning.

  • To approach local partner.

It can be one option or combination of options but need is to work out action plan case by case., and keep monitoring the progress.

It is important to consider that any debt can go bad anytime and hence to consider the actions from the beginning and being pro active.

It is not the strongest of the species that survive, nor the most intelligent, It is the one that is most adaptable to change