INSIGHTS & ARTICLES
Explore some of the most recent articles by our CFOs.
FEATURED ARTICLE
Questions to Ask Your CPA about Business Tax Strategy
The purpose of a business tax strategy is to maximize income by legally reducing the amount of taxes owed. Because tax laws and government regulations are constantly changing, your tax strategies need to evolve as well. A Certified Public Accountant (CPA) is a tax...
RECENT INSIGHTS & ARTICLES
7 Common Financial Modeling Mistakes
In order to make confident and effective business decisions, company executives need good data. They need to know how the business has performed in the past, where it stands financially right now, and what its prospects are for the future. They also need to be able to...
What to Expect During Due Diligence
Due diligence is the evaluation process used to inform decisions about business opportunities, such as a merger, acquisition, privatization, investment, or other financial transaction. During due diligence, the interested party will request documents, explanations,...
9 Business Finance Lessons We Learned from 2020
If there’s one thing we learned in 2020, it’s that change can happen—and it can come quickly, fiercely, and unexpectedly. In 2020, businesses were met with challenges they could never have predicted, and many had to shut their doors for good. Still others were...
What is an Outsourced Controller?
An outsourced controller is a financial expert who helps keep your books up-to-date. They also provide financial reporting and information in a timely manner. Controllers can be in-house or outsourced. If the controller is outsourced, this typically means they are an...
What is the Difference Between a Controller and Comptroller?
The terms “controller” and “comptroller,” as well as the positions they define, may seem strikingly similar. Indeed, the word “comptroller” is believed to stem from a 15th Century misspelling of “controller.” However, despite the similarity in titles and functions,...
6 Signs You May Need a Financial System Upgrade
How often do you reevaluate your financial management system? For most organizations, the answer is not very often. After all, the ultimate point of a financial system is to put it in place, then rely on it and the people who contribute to it to help things run...
How to Choose an ERP System for Your Business
As companies grow and their operations become more complex, they tend to outgrow their existing software. Expanding business units or segments tend to become more independent over time. This makes interdepartmental communications and resource allocation more difficult...
Variable Costs, Fixed Costs, Total Costs: How Do They Differ?
Nearly every business has both fixed and variable costs. To ensure that your business remains fiscally solvent and profitable, it is important to understand the different types of costs and how to manage them. In general, variable costs relate to the number of items...
What is GAAP and Why is it Important?
What is GAAP and Why is it Important? Financial reporting is an important part of business that communicates the financial performance and results of a company. It records and presents information about the company’s financial position, revenues, expenses, and related...
Debt vs. Equity Financing: Which to Choose?
Every business needs financing to fund growth. The old adage is true: it takes money to make money. There are two basic types of business financing: debt and equity. Each has its advantages and its drawbacks, and over time most businesses will need both. Finding the...
Strategies for Improving Vendor Contracts
For businesses that are inventory-supported, such as retail, resale, or manufacturing businesses, strategic vendor contracts can greatly enhance your profitability and cash flow. For some companies, vendor contracts are a set-it-and-forget-it portion of the business....
Basics of Business Banking
Every business needs banking services so they can receive funds, pay bills, and finance large purchases. It may be tempting to just use your personal bank for your business needs. However, a business has much greater need to understand and carefully select its banking...
How to Determine Cost of Goods Sold (COGS)
What is Cost of Goods Sold (COGS)? Cost of Goods Sold is also known as COGS or Cost of Sales. It is a critical financial metric that indicates the direct cost of creating or acquiring the goods a company sells during a given time period. This figure helps companies...
7 Most Common Financial Mistakes Construction Companies Make
Strategic CFO, Bradford Pack, discusses the 7 most common financial challenges faced by construction companies. With long project times, sizable material orders, and upfront labor costs, the construction industry often faces a variety of financial challenges. Below...
Evaluating Your Company’s Financial Confidence
An axiom in business is that CEOs and founders must “know what they don’t know.” It’s rare that a CEO or founder has expertise in all arms of the business. Instead, they must rely on identifying their weaknesses and make strategic adjustments—usually by hiring someone...
Essential Strategies for Scaling Up Your SaaS Company in 2021
The year 2020 has impacted businesses of all kinds in extraordinary ways, leading some to stunning windfall profits and others to utter ruin. This is especially true in the case of software-as-a-service (SaaS) companies. For instance, Covid-19 restrictions have kept...
PPP December COVID Relief Stimulus Bill
On Sunday, December 20, Congress passed a $900B stimulus package. One week later, on Sunday, December 27, Trump signed the bill into law. While there are many aspects of the bill offering moratoriums on evictions and extending unemployment benefits, the bill also...
Accrual Accounting vs. Cash Basis Accounting
Preferred CFO has worked with hundreds of businesses from startups and small businesses to medium-sized businesses or businesses looking to fundraise. While many of these are companies experiencing high levels of growth, many are not yet in a position to afford or...
How Does a CFO Add Value?
CFOs are high-level, strategic experts who optimize financial resources in a company while using those resources to achieve company goals more efficiently and effectively. Unlike bookkeepers, controllers, and accountants whose primary functions are rear-facing,...
5 Financial Strategy Tips for your Organization in 2021
2020 was This year, resolve to take control of your business finances and use them to help you get what you want out of the new year. Below are five financial strategy tips to help your organization prepare for the new year. Take a Look at Your Financial Forecast If...
The Difference Between the 5 Main Financial Experts
It’s not uncommon to have difficulty differentiating between the main financial professionals. Not only are the names similar, but they are also often unintentionally used interchangeably. However, despite how the titles may be used colloquially, there are distinct...