A Recession Playbook for Managing Finances and Operations

Today’s economic environment presents CFOs with more uncertainty than many have ever faced in their careers. This makes it critical to devise a playbook for how your organization will move forward during these uncertain times. Consero recently hosted a virtual CFO Roundtable in which several CFOs discussed how they are doing this. Participating in the […]

Today’s economic environment presents CFOs with more uncertainty than many have ever faced in their careers. This makes it critical to devise a playbook for how your organization will move forward during these uncertain times.

Consero recently hosted a virtual CFO Roundtable in which several CFOs discussed how they are doing this. Participating in the panel were John Araki, CFO for RecoveryOne, a digital health company; Craig Fryar, COO for BankingON, a digital mobile banking firm; and Raj Lakhani, CFO for CORE Business Technologies, a payment solution and revenue management company.

The roundtable was moderated by Tony Esposito, Director, Private Equity and Venture Capital for Consero.

Facing Hurricane Force Winds and a Crucible Moment

Craig Fryar noted the “hurricane force” winds that JPMorgan Chase CEO Jamie Dimon referred to recently as well as recent comments from Sequoia Investments that we’re heading for a “crucible moment that’s unique in the history of modern business.” The companies that fare well in this environment will be those that are adaptive and agile, said Fryar.

“The response I often get from CFOs is that they really aren’t sure because they don’t know how to measure the optimization and utilization of their teams and resources in terms of executing the business objectives.”

Fryar establishes a framework CFOs can use to characterize key measures for efficiency and effectiveness as opposed to financial models” that would bluntly say we need to cut 15% because we’re short on revenue.” he said.

“Instead, I advocate looking at department or business unit metrics that reveal issues in customer support, or we’re not quite making it in converting our funnel. These can show you how efficient and effective you are and help you make progress on digital transformation.”

To learn more about Consero and the benefits of using the Finance as a Service model, you can request an introduction here: https://conseroglobal.com/request-a-consultation/

Consero FaaS: Disrupting the Outdated Traditional F&A Model

Transformation
  • Cash to GAAP conversion
  • Clean-up work
  • Interim oversight & support
  • Accounting software Implementation

Build it Yourself Solution

  • CFO / Interim CFO
  • Consultants / VARs

Consero FaaS Solution

  • CFO / Interim CFO
  • or Consero Interim CFO
  • Consero Setup/Transformation
Ongoing F&A
  • Monthly financials
  • Daily accounting support
  • Management reporting
  • Integrate add-on acquisitions

Build it Yourself Solution

  • CFO
  • Controllers & Accounting Team
  • Enterprise Accounting Applications

Consero FaaS Solution

  • CFO
  • or Consero Fractional CFO
  • Consero FaaS Enterprise F&A Software and Services

New PE Platform Investment F&A Challenges

Founder Owned Company Accounting:
  • Existing accounting done on a cash/hybrid basis
  • Run on SMB accounting software and other disparate applications
  • Inability to produce auditable financials
  • Lack of know-how to develop projections & KPIs
  • No consistency/structure to customer contracts
  • Underqualified staff
  • Non-scalable manual processes
Carve-Out Accounting:
  • Required to move off parent company accounting applications in a timely fashion
  • Have to build an entire F&A team
  • No documented operational policies and procedures
To Optimized Finance & Accounting:
  • Monthly financials available in 5-10 business days
  • Audit and diligence ready support details
  • Integrated enterprise grade accounting software
  • Budget and forecast reporting
  • Business KPIs
  • Efficient & scalable processes for rolling in add-ons