Your Frequently Asked Questions by a CFO

An income statement shows your business’s revenue, expenses, and profits over a specific period. It’s a key tool for understanding how your business is performing. We can create customized income statements for your business to help you track progress and plan for growth.

Free cash flow is the money left after paying for all your expenses and investments. It shows how much cash your business has available to grow, pay debts, or save for the future. Using a free cash flow formula and cash flow forecasting, we can help you understand your financial health and make better decisions.

Key performance areas (KPAs) are financial metrics that show how well your business is doing. These can include profitability, cash flow, or how efficiently you manage inventory. A cfo helps you track and improve these areas to ensure your business stays on track.

Setting up an LLC in California involves filing forms with the state, paying fees, and meeting ongoing requirements. We can guide you through how to make an LLC in California, ensuring you meet all compliance and financial setup needs.

They are usually the same thing! Both show your revenue, expenses, and profits over a set period. If you’re unsure how to create one, we can provide example profit and loss statements to get you started.

Days inventory outstanding (DIO) measures how quickly you sell your inventory. A lower DIO means you’re selling products faster, which helps improve cash flow. We analyze your DIO to find ways to reduce it and free up cash for your business.

While CPAs handle taxes and compliance, a CFO focuses on strategy and planning. A CFO looks at the bigger picture, helping you with free cash flow calculations, key performance areas, and long-term growth strategies. Many businesses benefit from having both a CFO and a CPA working together, which our team at Hatcher CFO Solutions can provide.

Yes! We specialize in preparing businesses for audits, ensuring your financial records are accurate and compliant. Whether it’s for a big 4 firm or a local audit, our team will handle every aspect of the audit process, managing all interactions with auditors and taking care of the legwork so that your business can stay focused on its mission.

Nonprofits have unique financial challenges, like managing restricted funds or meeting grant requirements. A CFO ensures proper cash flow management, compliance, and transparency to help nonprofits thrive and meet their goals.

Reports like income statements, cash flow statements, and balance sheets give you valuable insights into your business. We can help you understand these reports and use them to plan for growth, reduce expenses, and improve profitability.