Torrey Pines Management

FAQ's

• What exactly is a CFO?
• What is the difference between accounting and finance?
• What are the benefits of using a consulting CFO firm for my business?
• How much do CFO consulting services cost?
• Can I use a consultant to “set up” my financial operations, and then handle it myself?
• What qualifications should I look for when I hire a consulting CFO?

What exactly is a CFO?

CFO is an acronym that stands for Chief Financial Officer or, in some smaller businesses, Corporate Finance and Operations. Depending on the size and nature of a business, a CFO’s responsibilities may range from simple accounting and budgeting to executive-level business development, finance and long-term strategic planning. In a small or mid-size business, it is imperative that a CFO have the skills and experience to “wear many hats” including administration, management, accounting, production, purchasing, human resources, facilities, contracting, and negotiations (and, of course, financial management). Above all, he or she must be business savvy. Torrey Pines Management Services consultants bring all of these qualities to your business, along with years of experience, exceptional academic training and ongoing continuing professional education.

What is the difference between accounting and finance?

Accounting provides historical information—it is simply the starting point for modeling a wide variety of potential business outcomes. Finance takes accounting results to the next level. While a CFO fully understands accounting and accounting systems, he or she takes a more forward look at business by projecting, forecasting, managing cash flow, and planning for future growth. Small business owners make better management decisions when they are informed and have better information.

What are the benefits of using a consulting CFO firm for my business?

A consulting CFO firm can provide the same benefits to your business as an in-house CFO, but without the long-term commitment and expense. Hiring a consulting CFO firm is a growing trend among small and mid-size businesses that want the knowledge, experience and visionary thinking of a high-level CFO but cannot afford one full-time. Such firms offer the benefits of professionals who have worked for a variety of businesses and industries, offering a diverse wealth of financial expertise and experience.

If your business has reached the point where you need a dedicated professional to handle your financial operations but aren’t quite ready for a full-time CFO, a consulting CFO firm can be a smart, cost-effective option. Plus, because services are on-demand, you control how much you want the consultant involved with your business.

How much do CFO consulting services cost?

It all depends on what you need. Torrey Pines Management Services will meet with you for a complimentary consultation to review your financial profile, discuss your needs and prepare a proposal for our services. There is no cost for our initial meeting and proposal.

Can I use a consultant to “set up” my financial operations, and then handle it myself?

Sure. Many small companies hire a consulting CFO to help them develop their initial business plans, assist them in securing adequate capital, or create an infrastructure to enable their small businesses to operate smoothly and profitably. Business owners may then engage the services of a consulting CFO to provide ongoing financial guidance or assist with special projects.

What qualifications should I look for when I hire a consulting CFO?

You want someone who is as excited about your success as you are—and who has the knowledge, experience, contacts and commitment to help you define and achieve your goals. Ideally, your consulting CFO firm will have successful, recent experience working in executive leadership positions with well-established businesses, and enjoy the challenge of taking growing businesses to the next level. If you have specific needs, such as capital, infrastructure, sales or finance plans, employee benefits, etc., seek out someone with proven expertise in those areas. Finally, keep in mind that you want a consulting CFO to help you transition to the next chapter in your business and leave you fully prepared to take it from there. Make sure your consultant’s plan for your business includes an exit strategy—if your consulting CFO does the job right, you won’t need him or her any longer.