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Outsourced Financial Management

Financial Department Management

Sutker Advisors allow Owners/Management to be comfortable that the financial-end of their business is being managed well.  We possess the technical knowledge of an accountant, the financial acumen of a CFO, the diverse expertise of an outside consultant, and the results-oriented focus of a member of your management team.

Our model is simple – We act as a “nearby corporate office” streamlining accounting processes that reduce the cost of day-to-day accounting operations, allowing us to provide FULL-COVERAGE, HIGH-LEVEL CFO/Controller Management for substantially less cost than that of a W-2 employee.

By providing you with comprehensive CFO management services, we:

  • Ensure accurate accounting and timely reporting
  • Effectively manage your financial-related issues
  • Modify and develop your accounting and operational systems
  • Perform financial and operational profitability analyses
  • Improve your liquidity/working capital
  • Ensure optimal financing
  • Reduce administrative expenses
  • Develop operational business plans

…and in short, become your trusted, hands-on financial advisor.

Case Study: Two-Weeks turned into One-Week Notice

$30 million distributor to the Construction Industry

The Controller for a $30 million distributor gave her two-week notice. The following day the owner called his lender for advice. The Lender recommended Sutker Advisors. That next day, he gave us a call to hear what we were all about. The following day, he called us back and asked if we can sit with the ongoing Controller to assess the position. We went there the next day, which was already Friday!

We are experts in financial management. So, we told the owner there was nothing out of the ordinary and quoted him a fee which was substantially less than the cost of his W2 employee.

Skeptical about our permanent outsourced model, he hired us as the temporary controller where we onboarded the position for the one week the outgoing Controller had remaining. Proving our model, we, now, are the permanent Controller providing timely and accurate financial statements, managing the staff, and addressing accounting issues as they arise.


Case Study: Hands-On Advice Coupled with Solid Financial Management

$10 million Designer/Distributor of Woman Apparel

A growing, but under-capitalized designer/distributor of women apparel hired Sutker Advisors to take responsibility for the financial end of its business. Sutker Advisors reduced the Company’s financial department cost by 60% while taking on the CFO role through the accounts payable functions. Through collaboration with other members of the management team, the Company is poised to have its best year ever.


Case Study: A Bank Prospect: A Burgeoning Business with no Financial Plan

$120 Million Cell Phone Wholesaler and Distributor

A high-net-worth individual started a turnkey cell phone wholesale and distribution company with three interconnecting companies. He self-funded the rapidly growing company with $10 million as the Company reached $40 million in annual revenue.

Confident about the upward trajectory of his business, the owner reached out to a Chicago-based bank to provide a working capital loan to fund the growth. However, to this point, the accounting was done “out of a shoebox” and there was no financial information supporting his working capital line request.

With a complicated turnkey business model that has thin margins, the Bank needed to gain comfort with the business and what the true capital need was.

The lender referred us to their prospect. We assessed the business and developed a financing memorandum that thoroughly explained the model and provided financial projections that mapped out the initial working capital need.

With a satisfactory comfort level, the Bank approved a less than maximum working capital line with the understanding of a six-month revisit to determine if additional capital was needed.

Sutker, then, developed processes and procedures to provide timely and accurate financial information to the owner and lender which led to formally becoming the Company’s Outside CFO and key member of the management team.

Now, a year-and-a-half since the start of our engagement, the Company’s current run rate is $120 million with a projected $2 million in net income with additional working capital support from its Lender.


Case Study: “Team Approach” Allows Company to Continue on Profitable Path

$7 million Maker of Home Décor Products

The CFO of a home décor company left soon after the Company’s controller retired, leaving a large void in the financial/accounting department. Sutker Advisors took on a leadership role, quickly assessing and understanding the Company’s financial systems and operations. As a result, the accounting department continued without disruption. Sutker Advisors generated timely and accurate financial statements and identified areas for profit enhancement. Showing its value, Sutker became the Company's permanent CFO/Controller.


Case Study: Analyzing the Facts and Making a Decision

$18 million Global Marketing Service Organization

A middle-market marketing organization began to service an overseas client and wanted to build an organizational presence there. Sutker, as the Company's CFO, gathered and analyzed the start-up and ongoing costs required to support this endeavor. Based upon an expected gross margin percentage, Sutker provided management with the revenue requirements in order to break-even, expected payback period,  as well as projected profitability at various revenue levels, all of which management used to make its decision.


Case Study: Lack of Information Made it Difficult to Run Business

$60 million Commodity Product Broker

Overview

A growing, profitable commodity-item broker never knew how its year would come out as it always had last-minute, year-end surprises on its financial statements. Furthermore, the paper trail of transactions, essential to a brokerage business, was in disarray.

Solution

Sutker reorganized administrative processes, allowing for a clear delineation of duties that resulted in the efficient and accurate processing of transactions. We also developed comprehensive monthly projections, complete with accruals that allowed ownership and management to understand and anticipate its financial circumstances; Standardized the closing process, improving the timeliness and accuracy of the financial statements; Developed a monthly gross margin analysis by customer, product line, and customer order to help understand profitability;  Finally, Sutker provided a monthly detailed analysis of results, including the Company’s performance versus projections.


Case Study: One Giant Black Hole

$18 million Global Marketing Service Organization

Overview

A marketing services firm had a vast organization of talented individuals who priced potential opportunities based upon their own experiences, causing disparity amongst the quotes. Furthermore, these estimates were never compared to the actual cost incurred, resulting in uncertainty regarding job profitability and the validity of the estimates, themselves.

Solution

Through extensive interviews and analysis, Sutker developed a consensual, standard pricing template that was used for all estimates. With the estimates’ standardized, Sutker, working with the Company’s IT Department, developed a labor tracking system that mirrored the estimating template, allowing for relevant actual vs. estimate analysis. Proving its value, Sutker became the Company's outsourced CFO.


Case Study: Building Financial Acumen leads to Competitive Advantage

$80 million distributor to the Construction Industry

A middle-market construction-related company seeking to increase its competitive advantage eliminated its controller position and hired Sutker Advisors at significantly less cost to prepare and analyze monthly financial statements, attend monthly management meetings, and provide guidance when financial-issues arise from time-to-time.

Sutker Advisors develops, in conjunction with other senior management, the company’s annual operating plan, provides monthly analysis on customer and product line profitability, as well as variances to budget. In addition, Sutker reviews administrative expenses, recently being instrumental in reducing the company’s corporate insurance by 40%.


Management Saw Roadblock Ahead and Changed Course

$18 million Global Marketing Service Organization

After a very successful year, a project-based international marketing firm invested in its infrastructure -- started a regional office, hired a senior sales executive, etc. After developing the monthly financial projections at the beginning of the new year, Sutker, as the Outsourced CFO, reforecasted the projections monthly incorporating updated potential projects and changes in the expense structure. Starting in July, Sutker/Management saw softening in the backlog for the 4th quarter and into the following year. This softness increased when Sutker reforecasted in August. Seeing the financial impact to the reduced business, both in profits and liquidity, Management took proactive steps to reduce its expense structure in anticipation of the lower 4th quarter revenue.

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