Fractional CFO & Project Services

What does it take for your business to earn a profit? When sales drop, do you understand how to deleverage your cost structure to stay above break-even? If you are going through a period of rapid growth, perhaps because you just landed a new customer, are your expenses getting out of control?  It is counter-productive to mandate a hiring and spending freeze (the classic “knee jerk” reaction) without developing insight into meaningful solutions for achieving an acceptable bottom line. 

The best strategy for creating efficiencies and cutting costs is to seek input from all levels of the organization. The best ideas concerning productivity come from line and staff personnel.  Executives need to ask the right questions and then stop and listen. 

As your outside finance leader, we can bring experience and expertise to facilitate these conversations and develop appropriate action plans. Further, we can help you achieve full clarity on profit improvement opportunities through such projects as revenue modeling, gross margin studies, trend analysis, and systems upgrades.

Business Planning

Start-up companies need planning to identify additional funding requirements and to estimate when they will achieve break-even.  Mature operating companies may be doing well but without planning they may not be adequately prepared to grow and address future risks, such as the loss of a key customer or cost increases by suppliers.

  • Create and monitor annual operating and capital budgets

  • Review customer and product profitability for volume and pricing opportunities

  • Review or develop pricing programs including promotional discounts and rebates

  • Work with management to determine where there are cost reduction opportunities

Financial Management

Basic accounting consists of accounts receivable and payable, payroll, and month-end close activities.  Other aspects of managing the company’s finances require senior level support for cash flow planning and monitoring, loan covenant compliance, risk management, and partnering with lenders and accountants.

  • Forecast and manage cash flow

  • Review customer and product profitability for volume and pricing opportunities

  • Maintain bank, leasing company, and insurer relationships

  • Supervise Controller and staff accountants

  • Collaborate with CPA on audit and tax matters

Financial Reporting

For monthly reporting, there are many small and mid-sized companies that only review income statements and balance sheets. It is easy to get lost in the details without seeing the big picture. It is the role of the CFO to provide insight into the company’s financial performance and condition with trend analysis, ratios, and graphs that demonstrate the significant highlights and lowlights.

  • Develop Key Performance Indicators (KPI’s) for both financial and operational performance

  • Report monthly variances based on actual results compared to the budget and last year’s results along with KPI’s, summary tables, and graphs

  • Determine if there are significant balance sheet risks, such as past due receivables, excessive leverage, or large upcoming payments due such as property tax and insurance premiums

  • Present summarized financial reports and updates to the Board of Directors

Process Management

While all companies have processes, they may not be consistent and coordination between departments may be lacking.  The CFO should work with all departments including Human Resources to ensure that there is a strategy for clear lines of communication and well-defined authority in areas such as purchase approval and subcontractor hiring. 

  • Develop policies & procedures

  • Ensure that adequate internal controls exist and are well documented

  • Work with Human Resources on the employee handbook, code of ethics, and job descriptions

Strategic Support

The annual budgeting process addresses sales and profitability.  It is assumed that with a profitable year there will be sufficient cash flow for payroll, other expenses, and some capital investments. Every two or three years every business should develop an updated strategic plan addressing questions like: How will we grow sales (e.g. through new products, customers, regions, and/or trade channels)?  Where should we add additional headcount?  What capital investments will be needed? Finally, what combination of additional debt and equity will be required? 

  • Develop a debt and equity financing strategy in support of future growth

  • Develop staffing and compensation plans

  • As part of strategic planning, create long-term forecasts that incorporate future growth initiatives or an exit plan

  • Provide support in M&A transactions through due diligence and guidance regarding terms & conditions of sale

Contact us

Tell us about your business and let us know how we can help you. We typically respond within 1-3 business days.

Or, schedule a consultation using the link below:

Calendly

  • “As CFO/COO of a mid-market company I engaged Chuck Langenhop to develop a "Quality of Earnings" report.  He delivered an excellent work product and just as important he was very professional and so helpful to me during the entire process.”

    -Mark Vise, COO/CFO, Burrow Global, LLC

  • “I was fortunate to work with Chuck as our part-time CFO. Never had to worry about anything in Chuck's realm and was able to stay focused on our organization's objectives.”

    -Victor Fishman, Executive Director, Texas Research Alliance

  • “Chuck started as a fractional CFO and thankfully stayed with us for 11 years. He was able to organize our financials into reporting that mapped out our financial future, moving us forward during our growth, an acquisition, and finally through a business sale. He is a great listener and communicator.”

    -Louis Guerra, CEO, Rudy’s Food Products, Inc.

  • “Chuck is very detail-oriented, with great ability to assist organizations with knowledge and insight into their cost accounting and cash flow concerns. Chuck is able to assist companies with growth through helping them identify their operational strengths and providing insight into their financial reporting.”

    -Tim Avance, Director of External Reporting, Alcon

  • “Chuck is a focused and detail-oriented advisor who is committed to the best interests of his clients.”

    -David Valenti, Managing Shareholder, Valenti Corporation GC, PC

  • “Chuck stands out because he takes the time to know the people he works with and is eager to help whenever he can. I highly recommend Chuck.”

    -Norman Myers, Co-founder, Efirm, Inc.

  • “We have worked with Chuck on various projects and have seen his ability to work on diverse projects from business plans, capital raises, to tax compliance. He is extremely capable and would be an asset to any organization.”

    -Greg Hext, CEO/Founder, Hext Financial Group LLC

  • “Prairie Elder Care has greatly benefited from working with Chuck Langenhop as our Fractional CFO. Chuck is trustworthy, insightful, and knowledgeable. He has provided valuable financial guidance and helped us strengthen our decision-making processes. His expertise, professionalism, and commitment to our success have made him a trusted advisor and an important part of our growth journey.”

    -Allyson Seitz, CEO & Co-Owner, Friendship Lodge Home Care LLC dba Prairie Elder Care

  • “Chuck’s most notable strength is taking the time and energy to understand the dynamics of our company. His unique knowledge was instrumental in maximizing our performance metrics. His knowledge and abilities are great, and best of all, he is genuinely invested and a joy to work with.”

    -Shawn Rife, Project Manager/Manufacturing Engineer, Axxea Systems

  • “Chuck's ERP experience was invaluable to the Sixth Floor Museum in the selection process for their ticketing and retail solution. Chuck was also pivotal in bringing the parties together through a challenging contractual negotiation, resulting in language which will now be incorporated in all of our future agreements!”

    Scott Clover, Founder and Owner, Siriusware

  • “At The Mind Electric, a successful software startup, I hired Chuck for high level financial matters. He helped us immensely in financial strategy & planning, prep for VC investment, revenue recognition, and general financial and accounting management. He was always very accommodating to our needs and extremely easy to work with.”

    Stewart Bush, COO, AtLink Communications

  • “Chuck brings more than knowledge and skill in financial planning to the table--he brings a curiosity and drive to know as much as possible about his client's specific situation. This truly sets him apart. It's great to work with someone who cares about the details of my company as much as I do.”

    Heather Easterday, Owner and Consultant, Easterday Associates

  • “I have had the pleasure of knowing and working with Chuck Langenhop for nearly four years. From the beginning, Chuck was an invaluable resource. He carried a significant workload, helped guide Lakeview through multiple period closes, and improved processes along the way. In every interaction I’ve had with him, Chuck has demonstrated a rare ability to quickly understand the needs of the business and deliver thoughtful, professional, and insightful work.”

    Jeff Kirkland, CFO, Lakeview Dairy Products, LLC.