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The New CFO Financial Leadership Manual

The New CFO Financial Leadership Manual

Steven M. Bragg

ISBN: 978-0-471-46334-4

Sep 2003

432 pages

Select type: E-Book

$92.99

Description

Praise for The New CFO Financial Leadership Manual

""Steve Bragg has done it again! This manual shows what a CFO needs to do to truly add value. It should be mandatory reading for all CFOs who want to play a strategic role in their organizations.""
—Janice M. Roehl-Anderson, Partner, Deloitte Consulting

""This timely guide will help CFOs master the right thinking and management skills. An effective tool for navigating today's corporate financial waters.""
—Clint Davies, Principal, Berry, Dunn, McNeil & Parker

""An excellent reference book and good reading besides. This book is a how-to for new and experienced CFOs. It is one place for new CFOs to get information on how to start in their job as well as continuing reference on many issues-such as personnel, accounting and reporting, banking, credit, taxes, and so on.""
—Gail W. Sevier, CPA, Member/Manager of Marrs, Sevier & Company LLC

Acknowledgments.

About the Author.

PART ONE: OVERVIEW.

Chapter 1: CFO’S PLACE IN THE CORPORATION.

First Days in the Position.

Specific CFO Responsibilities.

Overview of the Change Management Process.

Differences between the Controller and CFO Positions.

Relationship of the Controller to the CFO.

Summary.

Chapter 2: FINANCIAL STRATEGY.

Cash.

Investments.

Working Capital.

Inventory: Inventory Reduction Decision.

Fixed Assets: Lease versus Buy Decision.

Payables: Early Payment Discount Decision.

Debt.

Equity.

Fixed Expenses: Step Costing Decision.

Payroll Expenses: Temporary Labor versus Permanent Staffing Decision.

Entities: Divestiture Decision.

Systems: When to Use Throughput Costing.

High-Volume, Low-Price Sale Decision Using Throughput Costing.

Capital Budgeting Decision Using Throughput Costing.

Make versus Buy Decision Using Throughput Costing.

Summary.

Chapter 3: TAX STRATEGY.

Accumulated Earnings Tax.

Cash Method of Accounting.

Inventory Valuation.

Mergers and Acquisitions.

Net Operating Loss Carryforwards.

Nexus.

Project Costing.

S Corporation.

Sales and Use Taxes.

Transfer Pricing.

Unemployment Taxes.

Summary.

Chapter 4: INFORMATION TECHNOLOGY STRATEGY.

Reasons for Devising an Information Technology Strategy.

Developing the Information Technology Strategy.

Technical Strategies.

Specific Applications.

Summary.

PART TWO: ACCOUNTING.

Chapter 5: PERFORMANCE MEASUREMENT SYSTEMS.

Creating a Performance Measurement System.

Asset Utilization Measurements.

Operating Performance Measurements.

Cash-Flow Measurements.

Liquidity Measurements.

Solvency Measurements.

Return on Investment Measurements.

Market Performance Measurements.

Summary.

Chapter 6: CONTROL SYSTEMS.

Need for Control Systems.

Types of Fraud.

Key Controls.

When to Eliminate Controls.

Summary.

Chapter 7: AUDIT FUNCTION.

Composition of the Audit Committee.

Role of the Audit Committee.

Purpose of the External Auditors.

Dealing with External Auditors.

Role of the Internal Audit Function.

Managing the Internal Audit Function.

Summary.

Chapter 8: REPORTS TO THE SECURITIES AND EXCHANGE COMMISSION.

Overview.

Securities Act of 1933.

Securities Exchange Act of 1934.

Regulation S-X.

Regulation S-K.

Regulation S-B.

Regulation FD.

SEC Forms.

EDGAR Filing System.

Summary.

PART THREE: FINANCIAL ANALYSIS.

Chapter 9: COST OF CAPITAL.

Components.

Calculating the Cost of Debt.

Calculating the Cost of Equity.

Calculating the Weighted Cost of Capital.

Incremental Cost of Capital.

Using the Cost of Capital in Special Situations.

Modifying the Cost of Capital to Enhance Shareholder Value.

Summary.

Chapter 10: CAPITAL BUDGETING.

Hurdle Rate.

Payback Period.

Net Present Value.

Internal Rate of Return.

Capital Investment Proposal Form.

Post-Completion Project Analysis.

Summary.

Chapter 11: OTHER FINANCIAL ANALYSIS TOPICS.

Risk Analysis.

Capacity Utilization.

Breakeven Analysis.

Summary.

PART FOUR: FUNDING.

Chapter 12: CASH MANAGEMENT.

Cash Forecasting Model.

Measuring Cash Forecast Accuracy.

Cash Forecasting Automation.

Cash Management Controls.

Summary.

Chapter 13: INVESTING EXCESS FUNDS.

Investment Criteria.

Investment Restrictions.

Investment Options.

Summary.

Chapter 14: OBTAINING DEBT FINANCING.

Management of Financing Issues.

Bank Relations.

Credit Rating Agencies.

Accounts Payable Payment Delay.

Accounts Receivable Collection Acceleration.

Credit Cards.

Employee Trade-Offs.

Factoring.

Field Warehouse Financing.

Floor Planning.

Inventory Reduction.

Lease.

Line of Credit.

Loans.

Preferred Stock.

Sale and Leaseback.

Summary.

Chapter 15: OBTAINING EQUITY FINANCING.

Types of Stock.

Private Placement of Stock.

Layout of the Offering Memorandum.

Establishing a Valuation for the Offering Memorandum.

Swapping Stock for Expenses.

Swapping Stock for Cash.

Stock Warrants.

Stock Subscriptions.

Committed Long-Term Capital Solutions.

Buying Back Shares.

Summary.

Chapter 16: INITIAL PUBLIC OFFERING.

Reasons to Go Public.

Reasons Not to Go Public.

Cost of an IPO.

Preparing for the IPO.

Finding an Underwriter.

Registering for and Completing the IPO.

Alternatives for Selling Securities.

Trading on an Exchange.

Restrictions on Stock in a Publicly Traded Company.

Summary.

Chapter 17: TAKING A COMPANY PRIVATE.

Going Private Transaction.

Rule 13E-3.

Filling Out Schedule 13E-3.

Summary.

PART FIVE: MANAGEMENT

Chapter 18: RISK MANAGEMENT.

Risk Management Policies.

Manager of Risk Management.

Risk Management Procedures.

Types of Insurance Companies.

Claims Administration.

Insurance Files.

Annual Risk Management Report.

Summary.

Chapter 19: OUTSOURCING THE ACCOUNTING AND FINANCE FUNCTIONS.

Advantages and Disadvantages of Outsourcing.

Contractual Issues.

Transition Issues.

Controlling Supplier Performance.

Measuring Outsourced Activities.

Managing Suppliers.

Dropping Suppliers.

Summary.

Chapter 20: OPERATIONAL BEST PRACTICES.

Best Practices.

Summary.

Chapter 21: MERGERS AND ACQUISITIONS.

Evaluating Acquisition Targets.

Valuing the Acquiree.

Accounting for the Acquisition.

Purchase Method.

Cost Method.

Equity Method.

Consolidation Method.

Intercompany Transactions.

Contingent Payments.

Push-Down Accounting.

Leveraged Buyouts.

Spin-Off Transactions.

Summary.

Chapter 22: ELECTRONIC COMMERCE.

Advantages of Electronic Commerce.

E-Commerce Business Model.

Restructuring the Organization for E-Commerce.

E-Commerce Architecture.

E-Commerce Security.

E-Commerce Insurance.

E-Commerce Legal Issues.

Summary.

PART SIX: OTHER TOPICS.

Chapter 23: EMPLOYEE COMPENSATION.

Deferred Compensation.

Life Insurance.

Stock Appreciation Rights.

Stock Options.

Summary.

Chapter 24: BANKRUPTCY.

Applicable Bankruptcy Laws.

Players in the Bankruptcy Drama.

Creditor and Shareholder Payment Priorities.

Bankruptcy Sequence of Events.

Tax Liabilities in a Bankruptcy.

Special Bankruptcy Rules.

Alternatives to Bankruptcy.

Summary.

PART SEVEN: APPENDICES.

Appendix A: NEW CFO CHECKLIST.

Appendix B: PERFORMANCE MEASUREMENT CHECKLIST.

Appendix C: DUE DILIGENCE CHECKLIST.

Index.