CFO On Call – Show me the money

CFO On Call provide businesses with part-time Chief Financial Officers to assist with internal financial control and direction for your business. So, if you don’t need a full-time resource, that is where CFO On Call steps in.

Eric Tjoeng, Joint CEO and Senior Practising Partner of CFO On Call has written this specialised guest post for Kilimanjaro about cash flow management and how to achieve your business goals more efficiently.

Show me the money

Besides personal freedom, possibly fun and self-satisfaction, one of the key reasons for owning a business is to provide financial rewards for the owner in term of profits and business value, both for the personal effort and also for the risk the business owner is taking.

At the same time, the business needs to be able to pay employees, bills and other obligations when they fall due, which is the issue of cash flow management.

Future Financials

For business owners who want to target a better profit, a better cash flow or a better cash position, one of the effective tool to use is “What if” analysis or Future Financials, where you know the “Current” business position and want to target a “Future” (better) business position.

The Future Financials identifies the desired goals in your business and then shows how to fix it by focusing on 7 key business drivers (price, volume, margin, overheads, inventory, accounts receivable, accounts payables).


Typically a current position for a business may be that it has say:

  • An overdraft of $100,000 or …
  • It makes a small profit but it should be a bigger one or …
  • It has a poor cash flow.

With this process, with the right “what if “ analysis or Future Financials tool and knowledge, it can effectively show you the best options to say:

  • Reduce or eliminate the overdraft completely
  • Double or triple the profit if that is your objective
  • Fix the negative cash flow problem and give you positive cash flow.

The Future Financials procedure has two parts. It has a diagnostic part and a planning part.

Diagnostic part

In the diagnostic part, it adjusts and balances the 7 Key Financial Drivers to show you what has to be done to achieve your financial goals, such as increasing your profit or eliminating an overdraft.

It might be a combination of certain price increases, overhead reduction, as well as improved margin to double the profit.

It could be reducing inventory turnover, reducing accounts receivable days and stretching accounts payable days to improve cash flow and bank balances.

Using an appropriate powerful software tool and with the right knowledge, an enormous benefit can be gained in the analyses of the possible alternatives, as well as in choosing the most appropriate steps/actions.

Planning and Implementation part

In the planning part, it is critical to plan the steps a business needs to take to target that “Future” business position. Finally, it is important to be able to effectively execute such a plan and the deployment and utilization of an integrated Business System such as MYOB EXO will certainly help.

The Result

The value delivered by this effective and powerful process can be enormous. It literally can improve the business hundreds of thousands of dollars a year by knowing what actions you (a business owner) need to take to achieve the desired goals.

It can change the mindset of a business owner from:

“What do I have to do to get to the desired next step?” to

“Now there is no doubt what I have to do to get to the desired outcomes!”

If you want to find out more or have any queries, please contact Eric from CAD Partners CFO On-Call ( on 1300 362 436 or mobile 0401 990 200 and quote “Kilimanjaro”.