Steven M. Bragg
From the Publisher:
The New CFO Financial Leadership Manual details all of the key tasks, issues and responsibilities every CFO must be on top of in order to properly perform his or her job. It begins by breaking down the CFO's job into categories, placing considerable emphasis on the strategies within the areas in which the modern CFO provides the most value to the company. The book then delves into detailed functional topics which every CFO must be knowledgeable of even though they are the direct responsibility of the controller and treasurer. Lastly, it addresses key issues that have increased in importance in recent years—including outsourcing, shared services, best practices, and electronic commerce—making this a handy desk reference that the CFO will return to time and again.
Table of Contents Include:
- 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.)
- Financial Strategy. (Cash. Investments. Working Capital. Inventory: Inventory Reduction Decision. Fixed Assets: Lease versus Buy Decision. Payables. 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. )
- Tx 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. )
- Information Technology Strategy. (Reasons for Devising an Information Technology Strategy. Developing the Information Technology Strategy. Technical Strategies. Specific Applications. )
- 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. Quality of Earnings Ratio. )
- Control Systems. (Need for Control Systems. Types of Fraud. Key Controls. When to Eliminate Controls. )
- Audit Function. (Composition of the Audit Committee. Role of the Audit Committee. Purpose of the External Auditors. Dealing with External Auditors. Impact of the Sarbanes-Oxley Act on the Audit Function. Role of the Internal Audit Function. Managing the Internal Audit Function. )
- 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. )
- Financial Analysis.
- 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. Strategize Cost of Capital Reductions. )
- Capital Budgeting. (Hurdle Rate. Payback Period. Net Present Value. Internal Rate of Return. Problems with the Capital Budget Approval Process. Cash Flow Modeling Issues. Funding Decisions for Research and Development Projects. Capital Investment Proposal Form. Post-Completion Project Analysis. )
- Other Financial Analysis Topics. (Risk Analysis. Capacity Utilization. Breakeven Analysis. Business Cycle Forecasting. )
- Cash Management. (Cash Forecasting Model. Measuring Cash Forecast Accuracy. Cash Forecasting Automation. Cash Management Controls. Cash Management Systems. Foreign Exchange with the Continuous Link Settlement System. Natural Hedging Techniques. )
- Investing Excess Funds. (Investment Criteria. Investment Restrictions. Investment Options. )
- Obtaining Debt Financing. (Management of Financing Issues. Bank Relations. Credit Rating Agencies. Accounts Payable Payment Delay. Accounts Receivable Collection Acceleration. Credit Cards. Direct Access Notes. Employee Trade-Offs. Factoring. Field Warehouse Financing. Floor Planning. Inventory Reduction. Lease. Line of Credit. Loans. Preferred Stock. Sale and Leaseback. )
- 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. Private Investment in Public Equity. Committed Long-Term Capital Solutions. Buying Back Shares. )
- 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. SCOR. Trading on an Exchange. Over-the-Counter Stocks. Restrictions on Stock in a Publicly Traded Company. )
- Taking a Company Private. (Going Private Transaction. Rule 13E-3. Filling Out Schedule 13E-3. Intentional Delisting.)
- Risk Management. (Risk Management Policies. Risk Management Planning. Manager of Risk Management. Risk Management Procedures. Types of Insurance Companies. Evaluating the Health of an Insurance Carrier. Catastrophe Bonds. Claims Administration. Insurance Files. Annual Risk Management Report. Key-Man Life Insurance for the CFO. )
- 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. )
- Operational Best Practices.
- Mergers and Acquisitions. (Evaluating Acquisition Targets. Complexity Analysis. Evaluate Acquisition Targets with Alliances. Valuing the Acquiree. Determining the Value of Synergies. Form of Payment for the Acquisition. Terms of the Acquisition Agreement. When to Use an Investment Banker. Accounting for the Acquisition. Purchase Method. Cost Method. Equity Method. Consolidation Method. Intercompany Transactions. Contingent Payments. Push-Down Accounting. Leveraged Buyouts. Spin-Off Transactions. )
- 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.)
- Other Topics.
- Employee Compensation. (Deferred Compensation. Life Insurance. Stock Appreciation Rights. Stock Options. Bonus Sliding Scale. Cut Benefit Costs with a Captive Insurance Company. )
- 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. The Bankruptcy Act of 2005. Alternatives to Bankruptcy. )
- A New CFO Checklist.
- Performance Measurement Checklist.
- Due Diligence Checklist.
"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 excellet 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
STEVEN M. BRAGG, CPA, CMA, CIA, CPM, CPIM, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young. He received a master's degree in finance from Bentley College, an MBA from Babson College, and a bachelor's degree in economics from the University of Maine. He has also written or cowritten the following books, also from Wiley: Accounting and Finance for Your Small Business, Accounting Best Practices, The Ultimate Accountants' Reference, Controllership, Cost Accounting, Financial Analysis, Just-in-Time Accounting, Managing Explosive Corporate Growth, Outsourcing, Sales and Operations for Your Small Business, and The Controller's Function.