24f21914

ABCs of Accounting and Finance

Fri, 18 Mar 2022 04:49:19 GMT

The differences between an Accountant, Bookkeeper, Controller, CFO and CPA, and when to enlist each for your business.

Our economy continues to grow despite many obstacles over the past few years. Chances are that you, and your business, are operating differently today than you were at the start of the decade. You may operate in the same industry, you may have the same business card, but industry shifts, competitive changes, and the rapid adoption of technologies to enable virtual work, have caused everything about your business to change. And in a relatively short amount of time.

As part of a series of articles focused on helping small businesses to achieve next-level growth, this article highlights two areas that most growing businesses often overlook: their financial data, and enlisting the right expertise, at the right time in the business lifecycle, to gain insights and execute a winning financial strategy for growth.

This article is intended to help businesses owners:

Understand the differences between various accounting roles
Identify the stage in the lifecycle of your business in which you need each role
Realize that to grow your business, you will need more than a bookkeeper
Prepare for growth by building a strong financial foundation
Access a Controller or CFO to build a strong financial foundation

In the life of a business, the entrepreneurs often start off by maintaining the books themselves. They will likely hire a bookkeeper to record daily accounting transactions and a CPA to prepare the company’s tax returns. From there they will seek the necessary expertise they believe they need when they need it.

Did you know that there are distinct differences between an Accountant, a Bookkeeper, a Controller, a CFO (Chief Financial Officer), and a CPA (Certified Public Accountant)? These terms are frequently used interchangeably, but there are some noteworthy differences among them. Knowing the differences will help you to understand when and how to enlist each in order to organize your financial data, gain a 360-degree perspective of your business’ finances, partner with the right experts to protect the business from fraud, keep you compliant and out of trouble, and leverage financial intelligence and strategies to win by driving profitable growth.

Let’s review the key responsibilities of accounting and finance roles, and the appropriate disciplines to put to work at various points in the lifecycle of your business.

See the chart below as a quick-reference guide to the differences.

Fractional CFOs – the next step to next-level growth

Small businesses that have a bookkeeper and are not yet ready for a full-time CFO may enlist a Fractional CFO – someone who can work closely with the business owner to strategize, handle financing needs, perform financial analysis, prepare budgets, assess and manage risk in the organization, negotiate better pricing with vendors, and resolve thorny financial matters with clients or vendors, on a part-time or fixed-term basis. Ingenio Solutions can provide fractional CFOs to supplement the efforts of bookkeepers and provide financial guidance to the business owner or company executive to grow to the next level. For more information call (949)529-2970 or email info@ingeniosolutions.com . Ingenio Solutions offers a 60 minute complimentary consultation.

Listen to Jean discuss the ABC’s of Accounting on the Business Wingman podcast !

Part-time CFOs – the Secret Weapon in Business Strategy for Small, Growing Companies

Wed, 16 Feb 2022 06:20:53 GMT

As the U.S. economy continues to recover and a new level of normalcy is established, small businesses know that their next level of growth requires taking a proactive leadership role in its finances.

Many smaller sized companies have a bookkeeper or accountant on staff that accurately records and reports the financial performance of a company. They play a defensive role.

The focus of bookkeepers and accountants is mostly historical; they deal with what has already happened. They close out the financials for the month, reconcile bank statements, calculate sales commissions, and process payroll and accounts payable.

Helping Companies with their Offensive and Defensive Game

Seasoned entrepreneurs and business leaders understand that the difference between the success and failure of a business is more than just a matter of increasing sales – it’s also about being smart about its finances, smarter than the competition. They must also have a strong offensive strategy.

When it comes to future oriented financial matters related to planning and managing growth, many small companies are recognizing the benefits of enlisting a part-time Chief Financial Officer (CFO).

That’s where Ingenio Solutions comes in, an Orange County-based financial resources company that specializes in providing companies with executive level CFOs on a cost-effective part-time and interim basis.

Being Smart About Driving Profitable Growth

According to Jean Latu, CEO and Founder, Ingenio Solutions, “Today’s business leader must leverage every opportunity to drive profitable growth, and for our clients, that means access to financial dashboards with meaningful metrics to make better decisions about the business. It means reviewing financial statements and analyzing trends to anticipate the future. It also means ensuring that financial matters are effectively managed including banking relationships and funding sources, business insurance and employee benefit plans, and federal and state compliance requirements. Our clients benefit from engaging our senior finance executives to help them with their offensive strategy. They know they must be proactive and not just reactive.”

Leveraging the Experience of Senior Financial Executives

Senior-level finance and accounting executives like CFOs can work a few days per week, or per month. Their experience and expertise helps businesses to manage evolving and ever-changing financial and business issues. They can review an organization’s systems and processes to ensure compliance and prevent fraud, as well as making sure that the company is approaching their finances strategically and with the appropriate disciplines that are found at large companies that employ full-time CFOs and senior finance executives.

Minimizing Risk and Fraud

Recently Ingenio heard from a company who discovered that one of their senior executives was defrauding the company over an extended period of time. That same company also experienced a mid-level manager who was using gift card codes to shop for the company’s product online, from work.

Latu notes, “This type of fraud occurs more often than business owners realize. Retaining an experienced senior-level finance executive on an ongoing basis ensures that a company avoids running on autopilot. They can implement strong internal controls to ensure that systems and processes are in place and operating effectively which can help to minimize the risk of fraud.”

The ‘Next Level’ Starts with a Conversation

Not sure if you’re ready for a part-time CFO, don’t worry. Give us a call at (949) 529-2970 and let’s have a conversation. Ingenio Solutions offers a 60 minute complimentary consultation.

When Finance Deadlines and Deliverables Outnumber Your Internal Resources

Sat, 15 Jan 2022 03:27:42 GMT

As the adage goes, the only thing certain about business is uncertainty. That’s why it’s important for finance and accounting departments to be able to scale quickly and accordingly to the demands, deadlines, and deliverables that the business requires.

In speaking with CEOs and CFOs and from experience, tight deadlines may be driven by regulators or a lender who demand financial reporting. Other times there might be a project deadline that is looming and they simply just need additional people to get the work done.

That’s where Ingenio Solutions comes in. When companies and organizations need high caliber, highly skilled project resources to complete accounting and finance projects and scopes of work, they rely on Ingenio.

Software Implementations: an Ideal Time to Bring in Project Resources

As companies upgrade their infrastructure and undergo software implementations, often times they need consultants to fill key roles on the project team. They can also backfill for employees who are assigned to project teams that are responsible for software implementations. In this scenario, Ingenio consultants keep the day-to-day accounting activity running while the project team performs the implementation. This allows company employees to embrace the new technology more quickly as they work as part of the project team.

Mergers & Acquisitions: Continuity is Crucial

During mergers & acquisition (M&A) transactions companies will often opt to bring on project resources. The fact is that key people leave unexpectedly once the transaction is announced, as they fear their position will be eliminated. According to Ingenio Solutions CEO and Founder, Jean Latu, “We often fill in for a CFO, Controller, Accounting Manager, or FP&A Director. We keep things running smoothly and assist with the post-acquisition integration. We also assist ahead of M&A transactions by performing due diligence and financial analysis.” These situations are ideal for using project resources.

Avoiding and Cleaning up Messes

Preparing account reconciliations as part of the monthly accounting cycle is an indication of a strong internal controls environment. We’ve received many calls from companies that have uncovered a problem that has impacted their earnings or profit. Often times problems stem from not staying current with the preparation of account reconciliations. The company may not have prepared them on a regular basis for months, or even a year. Ingenio Solutions determines the number of resources needed, and then works diligently to catch-up the backlog of reconciliations. Latu states, “as a result of completing the account reconciliations, we determine the impact on earnings or profit. We then prepare adjusting journal entries to properly state the financial statements. If necessary, we restate the financials for prior periods.”

Additionally, Ingenio consultants will recommend and implement new processes to ensure that the mess doesn’t re-occur. ”We train a company’s team on the new processes and present executive management with recommendations on how to ensure ongoing compliance and accountability. Correcting errors and sloppy accounting practices is a common problem that Ingenio Solutions consultants solve every day,” Latu continues.

Ingenio Solutions Will Fill the Gap and Keep You on Track

If you find yourself in one of these situations, don’t worry. Ingenio Solutions can provide you immediate, qualified accounting and finance resources, including CFOs, Controllers, Accounting and Finance Managers. Call (949) 529-2970 and let’s have a conversation. Ingenio Solutions offers a 60 minute complimentary consultation.

When Your Company Experiences the Departure of a CFO or Controller

Thu, 16 Dec 2021 03:31:45 GMT

CEOs and business owners can find themselves in need of critical resources when a CFO, financial Controller or VP Finance leaves the company unexpectedly. When this situation occurs, it can cause a high level of anxiety for the remaining executives because finance and accounting, the lifeblood of an organization, is critical to keeping a business running smoothly. Ensuring that reporting, analysis, payroll, billings, receivables, payables, and cash management are handled in a timely manner is a top-level priority—all key aspects of financial operations must continue uninterrupted.

Taking Time to be Strategic after the Departure of a Key Finance Leader

Ingenio Solutions CEO and Founder, Jean Latu, says that “like with most ‘problems’, when there’s a departure of a high level finance leader, it presents a company with an opportunity.” In the case of a sudden departure of a CFO, Controller or VP Finance, it’s an opportunity to step back and assess the current and future needs of the company. A finance leader who can set the standard for the Finance team, and achieve the results necessary for the company to grow and succeed, will be a valuable business partner.

Although the departure of a key finance leader can trigger an immediate search process, it’s an opportunity to revisit the company’s goals, evaluate current and future needs, and create a strategy to hire the right person who will serve the company in the future. An interim resource can bridge the gap until the new leader is hired.

Immediate Relief for a Departure of a CFO, Controller or VP Finance

Ingenio Solutions has interim consultants who provide immediate relief in the event that someone leaves unexpectedly, whether it’s the CFO, Controller, or VP Finance.

By enlisting an interim financial resource, this gives companies time to recruit the right executive for that key position. It’s important not to rush the search process in order to hire the right person. In the meantime Ingenio Solutions consultants make sure that month-end close and financial reporting stay on track and that all accounting processes continue, uninterrupted.

Latu notes, “Our consultants also provide supervision for accounting and finance teams; they review and supervise the daily activity and manage any unusual items or exceptions to the rule that arise. With Ingenio Solutions there’s no learning curve for our executive level consultants who have more than 20 years of experience in accounting and finance.”

As the main contact for Ingenio’s clients, Latu makes sure that there’s good function and fit, meaning that she makes sure that the interim financial consultant who works with Ingenio’s clients has the proper technical skills in accounting and finance that are needed. Additionally, Latu ensures that there is a good cultural fit – that is, ensuring that the consultant’s temperament is a good fit for the client’s culture and organization.

Ingenio Solutions brings fresh eyes and a fresh perspective to the organizations they work with. The team at Ingenio has worked with many different companies and they can offer insight into how similar organizations are performing a certain process. Sharing best practices can result in better performance for the organization, which is valuable.

Let Ingenio Solutions Turn Your CFO/Controller Vacancy into an Opportunity

So if you find yourself with an unexpected departure of a senior financial executive or manager, or you anticipate a departure, don’t worry. Ingenio Solutions can provide you immediate, qualified accounting and finance resources, including CFOs, Controllers and even Accounting Managers. Call (949) 529-2970 and have a conversation. Ingenio Solutions offers a 60 minute complimentary consultation.