Client Examples

Below are just a few examples of how AimCFO has helped companies in the past.  As you will see from these cases, an effective part-time CFO has an awareness of the overall operations of a company and the willingness to get involved at whatever level is necessary to improve profitability, enhance cash flow, and establish procedures to strengthen operations and provide meaningful information for management decision making.

Example 1

This company was experiencing a breakdown in communications between customer service and the accounting personnel who invoiced customers.  This created two major issues – One, the billing errors were significantly higher than acceptable. Two, customers were becoming upset that the invoices were not agreeing with what they expected.  After investigating this issue, observing work flow, and identifying the workload for customer service and invoicing personnel, the recommendation was made to merge these two groups and eliminate two employees.  As a result, the company saved in excess of $60,00 annually, reduced billing errors, and improved customer satisfaction.

Example 2

The client company was in the process of renewing a lease agreement.  Since there had been a number of build-outs since the original lease, the decision was made to verify the square footage stated in the new lease agreement before signing.  It was determined that the lease would be charging for 5,000 square feet more than was actually being occupied.  As a result, the lease was modified to reflect the correct footage, resulting in approximately $7,500 in annual savings.

Example 3

A company’s casualty insurance expense had grown significantly.  Among the issues were high rates for property and general liability insurance and workers comp.  Additionally, the company owner believed that it would be impossible to obtain product liability insurance because the product was being sold to a high risk customer group.  The lack of product liability insurance left the company with significant exposure.  Permission was received to obtain additional quotes, resulting in lower rates and also the addition of product liability insurance.  The lower rates, even with the addition of product liability insurance, reduced annual insurance cost over $8,000, approximately 25%.

Example 4

A company which had been profitable for many years began losing money consistently and experienced a much tighter cash position as a result.  Careful financial analysis identified the critical cause as a gradual growth in production personnel when sales were actually remaining relatively flat.  The recommendation was made to make adjustments to headcount.  This was implemented and within two months the company returned to profitability.

Example 5

While we hope this never happens to you, it is certainly an example of how having appropriate controls can prevent catastrophic events.  In this case a company was being split into two companies.  In the process of attempting to verify the accuracy of financial information provided by internal accounting staff, it was determined that a fraud in excess of $400,000 had occurred, in spite of annual audits.  This is a classic case where a Professional Part-time CFO could possibly have implemented procedures to stop this before it reached this magnitude.

Example 6

This company was always tight for cash and its slow payments created problems with getting inventory from vendors.  It was determined that one of the reasons for a large amount of the outstanding balance with the largest vendor was that defective product was not being processed for return in a timely manner, causing the vendor to believe that the company was further behind on payments than they actually were.  We identified the product to be returned and obtained an RMA.  This improved cash flow by reducing the amount owed and enhanced the relationship with this vendor.

Example 7

Monthly closing was taking far too long.  Upon contracting with the company a careful plan was developed to streamline the closing process and develop more efficient routines.  The result was a more accurate close that now took 2 to 3 days rather than two weeks.  Obviously, the sooner management has financial results in hand, the sooner they can take any needed corrective action.

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