Intentional Growth #179: The Role of a CFO: See Into the Future With Your Business Financials (Ep.3 of Value Growth Series)
Today we’re talking about the role of a CFO and how timely, accurate and useful financials can help you see into the future of your business and make your company more valuable
I have with me, the co-founder and my business partner at Arkona, Pat Hobby. During his 25+ year career as an outsourced CFO, Pat has been a part of over a dozen acquisitions and is one of the most brilliant people I know.
Don’t worry… if you think this episode sounds boring, think again. Pat breaks down what it takes to turn your company into a cash generating machine by putting together world class financials (in a way any Visionary can understand) and how they can take your company to the next level AND a higher valuation.
Pat will be talking about how to take your income statements, tie them to your balance sheets, and then understand how your budgets and your cash flow statements should all tie together to reflect your strategic plan. We’re also talking about how to take the information, KPIs, and data you need in order to know if you and your business are moving in the right direction.
Tune in. It’s worth it. ;-)
What you will learn
- The difference between a true CFO and a Controller
- The 3 financial statements that should tie together to help you see the future
- How your strategic plan should be integrated into your financials
- What goes into a good company budget and how to start (even if that word gives you a stomach ache ;-)
- How to tie your sales forecast to your financial budget and strategic plan
- Some of the top KPIs to measure and monitor to ensure your company is moving in the right direction
- How to consistently measure EBITA, normalized EBITDA and cash flow
- What it can be like to manage your bank versus your bank managing you
Quotes
“Your financials should reflect how well you are doing in your strategic plan.” - Ryan
“If you’re tracking the cash generated, based on sales, it should be around 20%. But if you see a trend where it’s gone from 20 to 10%, there’s something wrong.” - Pat
Takeaway:
Attend our ARKONA bootcamp. If you own a company, if you’re an entrepreneur, or if you run a company, you will be able to take the steps in this episode and apply it to so many different aspects and portions of your professional life.
Links and Resources:
Reach out to me if you have questions about the boot camp!
You can also reach out to me via email at rtansom@arkona.io or on my LinkedIn
About Pat:
Before Pat Hobby became the co-founder of Arkona, LLC, he started with a background in accounting and numbers, as well as being the CFO of quite a few successful companies. Now both Pat and Ryan run ARKONA as well as the ARKONA bootcamp.
We started Arkona with a mission to help entrepreneurs and business owners get clarity and control on how to grow and exit their businesses through educational boot camps and consulting services. We want to help business owners better understand the world of M&A and level the playing field between sellers and buyers (who are almost always more skilled and experienced in M&A) so owners who want to exit can achieve their goals, both financially and personally.