Terminology

Budgets (Targets)
A budget is essentially a spending and financial plan–an estimation of revenue and expenses over a certain period, such as a month or year. A budget will generally incorporate planned sales revenues, the number of sales transactions, supply quantities, costs and expenses, asset purchases, liabilities, and cash flows.

Budgeting enables a business to manage its monthly expenses, prepare for uncertainties and unpredictable events, and be able to afford large items without going into debt. Effectively, a budget is a process of calculating and predicting how much money you must earn or save during a particular time period, as well as the planning of how you will spend your earnings or savings. Budgeting creates a baseline to compare actual results to determine how the results vary from the expected performance.

Financial Forecast
A revised prediction or project of the fiscal year expense or revenue is created after the budget, or financial plan is prepared. Predicated upon your target and expectations of what is likely to occur, we can set financial forecasts. Financial forecasting indicates whether the company is headed in the right direction, estimating the amount of revenue and income expected to result in the future.

Financial forecasting is utilized to determine how businesses should allocate their budgets for a future period. However, unlike budgets, financial forecasting does not analyze the variance between these financial forecasts and actual results.

Cash Flow Forecasts
Cash flow forecasting is a process whereby we estimate the flow of cash coming in and out of your business over a specified period of time. Our team utilizes cash flow forecasting to obtain an estimate or forecast of your business’s future financial position.

The cash flow forecast displays your projected cash based upon your income and expenses and upon anticipated payments and receivables. Cash flow forecasting is an effective and valuable tool to make decisions about activities. These activities may include funding, capital expenditures, and investments.

KPIs
KPIs are metrics that provide insights into a business’s underlying financial and operational strength. They can be based on any kind of data that is important to a company, such as average sale per transaction, sales per square foot of retail space, percent of gross margin, click-through rate for web ads, or accounts closed per salesperson. Regardless of where you want to go, you have to track the data to make progress.
Action Plans
Simply knowing what you want will not get you there. Your business needs a real plan to make it happen. When a plan is written with concrete, measurable steps, you can gauge whether or not it has succeeded. This should be a well-thought-out written plan, with clear goals and actionable steps that can be measured and quantified in some way. Furthermore, individuals should be charged with carrying out the steps.
Financial Scoreboard
Our financial scoreboard is a business intelligence tool that allows us to track and report on financial KPIs. It is color-coded to show us what is going right in your business, what might need some improvement, and what is going wrong in your business.
Fractional CFO
A fractional CFO is a financial executive who works with multiple clients, dedicating a fraction of their time to each client’s financial needs. They typically provide high-level financial oversight, strategic planning, financial analysis, and guidance on important financial decisions. Fractional CFOs offer cost-effective solutions for organizations that need CFO-level expertise but cannot justify the expense of a full-time CFO.
Part-time CFO

A part-time CFO is similar to a fractional CFO but typically works with only one organization on a part-time basis. They provide strategic financial leadership, financial management, budgeting, financial analysis, and other CFO responsibilities for the organization. Part-time CFOs offer flexibility and cost savings compared to hiring a full-time CFO.

Outsourced CFO

An outsourced CFO is a financial professional or a firm that is hired externally to perform CFO-related functions for an organization. They work remotely or on-site and handle various financial activities such as financial strategy, financial reporting, budgeting, cash flow management, financial analysis, and more. Outsourced CFOs provide expertise and support without the need to hire a full-time CFO, offering cost savings and access to specialized skills.

FP&A Advisor

An FP&A (Financial Planning and Analysis) Advisor is a financial professional who focuses on financial planning, budgeting, forecasting, and analysis functions within an organization. They provide insights, financial modeling, scenario analysis, and recommendations to support strategic decision-making. FP&A Advisors work closely with senior management to optimize financial performance and achieve organizational goals.

Financial Modeling
Creating mathematical representations or simulations of financial scenarios to analyze the potential outcomes and impacts on the organization.
Variance Analysis
Comparing actual financial performance against budgeted or forecasted figures to identify differences and analyze the reasons behind them.
Cost Analysis

Analyzing the costs associated with various activities, products, or projects to understand cost drivers, identify inefficiencies, and improve cost management.

Revenue Analysis

Analyzing the sources and trends of revenue generation to identify opportunities for growth, optimize pricing strategies, and assess revenue performance.

Profitability Analysis
Evaluating the profitabilityCFO of different products, services, customers, or business segments to identify areas of high or low profitability and make informed decisions.
Financial Reporting

Preparing and presenting financial statements, reports, and dashboards to provide insights into the organization’s financial performance and aid decision-making.

Financial Planning
Developing comprehensive plans for the allocation of financial resources, including revenue projections, expense management, and capital investments, to achieve strategic objectives.
Rolling Forecasts
Continuously updating and revising financial forecasts based on the latest information and market conditions, allowing for agile decision-making and resource allocation.
Scenario Analysis
Assessing the potential impact of various scenarios or alternative courses of action on financial outcomes to evaluate risks, opportunities, and potential mitigation strategies.
Cash Flow Analysis
Evaluating the cash inflows and outflows of an organization to understand liquidity, manage working capital, and ensure sufficient cash reserves for operations and growth.
Capital Budgeting

Evaluating potential investment opportunities or projects based on their expected returns, risks, and alignment with the organization’s strategic goals.

Financial Risk Management

Identifying, assessing, and mitigating financial risks, such as interest rate risk, currency risk, credit risk, and market volatility, to protect the organization’s financial well-being.