A Solid Financial Intelligence Framework is Critical to Growth

To run a financially healthy company, you must know your numbers. This fundamental practice is paramount to understanding your current financial position and how it may impact your future growth objectives. More times than I care to count, I find that business owners lack the accounting and bookkeeping procedures and structure needed to produce timely, accurate financial statements, and without those key numbers, it is impossible to have a good picture of their current financial position.

This common occurrence motivated me to formalize a program – which I call Financial Intelligence Framework – built around how I help companies achieve higher levels of cash and profitability and financial goal clarity.

Like building a home, the Financial Intelligence Framework is the foundation that is needed to support the eventual design of the house. There may be only a single story initially, with a second story planned for later. That foundational framework must be capable of supporting the growth that is expected over the next several years to achieve the ultimate design.

Phase 1

The first phase of the Financial Intelligence Framework consists of pinpointing the current financial position of the business, determining where it needs to be, and identifying the ideal financial structure to get it there.

  • Bookkeeping and accounting practices and procedures are assessed through a review of the books and discussions with the person who is responsible for these foundational elements of the framework.
  • The business owner is interviewed to determine what he/she receives in terms of financial statements, whether there is an understanding of and the ability to interpret those documents, and what statements are missing that would be helpful.
  • Once there is an understanding of where the business stands and where they should be, a gap analysis is prepared to show what needs to be implemented financially to get from here to there.

Phase 2

In the second phase I work with the business owner to develop, prioritize, and implement projects to get the business from where it is to where it needs to be.

  • These projects become components of the Financial Intelligence Framework, which takes several months to create and implement.
  • Part of the process involves putting in place the finance and accounting structure necessary to generate timely and accurate financial statements in a format that facilitates making sound, strategic decisions as the business moves forward.
  • With the right Financial Intelligence Framework in place, accurate budgets and forecasts can be prepared for growing the business.
  • Once the infrastructure – the Financial Intelligence Framework – is in place, we work to refine and optimize the design by evaluating the 5 Ps of Profitability – Product, Pricing, Processes, People, and Planning – and to make the 5 Ps what they need to be to achieve the financial goals of the business.

My new Financial Intelligence Framework is best suited to companies with $1M – $10M in annual revenue. It’s a six-month, deep dive that will put owners in control of their financial destiny and yield:

  • A platform that provides a clear picture of the company’s current financial position
  • A financial foundation that supports scalability
  • A charted course to meet goals for growth
  • Optimized profit and cash flow to not only grow the business but build personal wealth
  • Higher company value for the owner’s exit

Contact me for a complimentary consultation about getting your Financial Intelligence Framework in place and positioning your business for growth.

Written by

Rick Arthur is a CFO whose expertise is built on Financial Intelligence and 35 years in senior financial roles. Coupled with a CEO’s perspective and the experience of building his own $20 million company, he brings a unique depth of insight into business from the top down. Wired to get to know people, Rick works hand-in-hand with business owners of intentional, growth-oriented companies, solidifying relationships as a trusted advisor and confidant to his clients. He leverages his experience to help business owners gain traction and stay laser-focused on the company’s vision, cash flow, and profitability – all while creating big picture solutions for strategic planning, growth and sustainable success.