CFO Solutions
The need for expert financial oversight is critical for private fund managers – especially those with alternative investments, real estate and infrastructure. An increasingly popular solution to the many challenges General Partners and Investment Advisors contend with is outsourced CFO services. As a leading outsourced CFO firm, PKF O’Connor Davies navigates the demands of in-depth accounting, administration and tax expertise with extensive financial services experience that our clients trust.
Meet Our Professionals
Is It Time to Hire an Outsourced CFO?
Outsourced CFO is the strategy of hiring an external financial expert or firm to manage an organization’s financial strategy, planning and analysis. This gives businesses the ability to tap into the expertise of a Chief Financial Officer – to optimize financial performance and navigate complex financial challenges – without incurring the cost of a full-time executive.
Serving as a highly credentialed outsourced CFO or Controller, we become trusted associates to our clients’ internal staff, providing accounting, bill pay and financial reporting, tax planning and compliance. Our CFO outsourcing solutions help provide General Partners the space to focus on raising capital and deployment for continued growth while optimizing productivity and reducing expenses.
Some firms offer accounting; others provide technology. We deliver both highly competent global professionals and a sophisticated, ever-evolving technology platform.
With an outsourced CFO and accounting model, clients benefit quickly from our respected experience, technology and human capital. Central to our practice is a multi-disciplinary approach that begins with forging a unique team of highly qualified professionals, which we can then augment with advisors experienced in addressing specific, relevant issues as warranted. Our clients value this dedication to service just as they appreciate our dedication to value: CFO outsourcing middle- and back-office functions often allows for the reduction of sizeable internal staff salaries, bonus expenses and employee benefits costs. Our outsourced CFO services include:
Accounting and Financial Services for Operating and Management Companies
- Accounting and bookkeeping
- Journal entry preparation and entry into the general ledger
- Reviewing monthly financial statements; valuations of investments and businesses
- Cash flow modeling and budgeting
- Analyzing and negotiating real estate and equipment leases; setting up journal entries
- Taxes: tax accounting, return preparation, tax filings, estimated taxes, foreign filings (e.g., FATCA)
- Designing and implementing internal control and accounting systems
Income Statement
- Tracking and reporting on expense allocations between entities, divisions and third parties
- Waterfall, carry, management and incentive fee calculation
- Accounting policy – GAAP (IFRS, if applicable): revenue recognition and reporting, including deposits; invoicing
- Allocations of costs and expenses
- Expense tracking: commissions; professional fees; insurance; goodwill impairment analysis, etc.
- Variance analysis: budget vs. actual
Balance Sheet
- Cash management, cash flow projections and preparation of monthly bank reconciliations
- Accounts receivable management: invoicing, collections, allowance for doubtful accounts, etc.
- Accounts payable and bill payment; expense analysis and allocation; preparation of accrual supporting schedules relating to financial statements; vendor onboarding
- Consolidations and reconciliation of due to/due from subsidiaries as well as other intercompany transactions
- Proper presentation of long- and short-term debt; review of interest accruals and proper classification of debt service payments; covenant compliance analysis
- Tracking of loan agreements
- Fixed asset schedules including depreciation
- Equity review: check register, review of meeting minutes; ensure proper reporting of preferred and common stock; handling of options, stock subscriptions and treasury stock
- Preparation of audit-ready financial statements including applicable footnotes; provide audit support