QuickBooks "class"

We do not have the ability to parse data by “class” or divisions, profits centers, individual retail locations or subcategories. CFO Scoreboard is designed to provide the business owner with optics on the overall business. A business is defined by a balance sheet, not divisions or “classes”. Furthermore, CFO Scoreboard is not intended or designed to replace many of the financial metrics that business use to analyze their businesses or that are specific to an industry. On the other hand, CFO Scoreboard does provide some incredibly valuable optics and trends that can be used to make the business more profitable and sustainable. We catch the tumors before they turn into life-threatening diseases.

For example, in the case of ROI Communication, Revenue is down 12% in the trailing 12 months of this year compared the same time period last year….the Profit margin is down 71% and Profits are down 74%. (See below)

Revenue and Profits per Payroll Dollar are eroding and Return on Assets is down 77% this year compared to last year. Operating Cash Flow, on the other hand is spectacular because of managements ability to collect on Accounts Receivable.

Here is the key to CFO Scoreboard: If you have better optics, you can ask better questions. Asking better questions gives you the opportunity to make adjustments in your execution and performance and therefore make more money.

It is highly likely that someone within the ROI organization is aware of many of these trends. The question should not be how CFO Scoreboard can replace all the other analysis tools currently being used by ROI. The appropriate question  is: Are the optics provided by CFO Scoreboard additive to managements understanding of the financial performance of the business and what question does management need to ask to change the activities that are causing this performance.

Based on my experience, the vast majority of senior management teams need a communication/performance platform that everyone can use and understand to enable the kinds of robust discussions required to avoid financial risks. CFO Scoreboard is that platform.