Balance Sheet Management Practice Group

As businesses evolve managements often find they need to expand their focus from sales and profitability to include the management of their increasing complex balance sheets. Risks and opportunities associated with balance sheet management issues can be complex and can significantly enhance or detract from the future growth and success of the business.

Our Balance Sheet Management Practice focuses on three main disciplines:

  • Working Capital Management. Shortening the working capital cycle is the most cost efficient way to fund growth and our partners provide assistance in developing measures to assure working capital balances are being monitored and goals are being met. We assist in developing processes and controls to manage receivables, inventories, payables and other current assets and liabilities.
  • Assessment of Adequacy of Permanent Capital and Alternatives. When there is need for outside capital we assist with the development of the strategy, financial models and due diligence. Our partners have extensive experience having participated in the capital raising process for both public and private debt and equity offerings.
  • Capital Investment Decisions.  Each significant discretionary investment, whether operating or capital, should be justified and approved with a carefully thought and measurable financial analysis. We help management implement ROI analyses for almost all discretionary uses of corporate resources. We can also assist in refining and improving measurement of actual returns vs. those projected.

Managing the balance sheet encompasses a multitude of skills a Company may not have without supplementing their accounting staff or seeking outside assistance from a seasoned CFO that has significant prior experience. We can help by:

  • Providing CFO consulting services to assess processes, procedures and controls. Our partners also have extensive experience in the financial disciplines associated with raising capital.
  • Placing part- or full-time CFOs with industry competency and, even more important, we can provide our CFO’s to assist in evaluating permanent candidates.
  • Providing immediate interim support from Accountants2Go to supplement existing staff or unanticipated openings.
  • Providing permanent staffing solutions for accountants and accounting/finance management.


Practice Leader- John Luttrell

John Lutrell illustrationJohn Luttrell has spent his management career primarily as CFO of small market capitalization, public companies with sales ranging between $50 million to $6 billion. Much of his experience relates to companies with significant inventories and capital investments, with both public and bank debt. He has extensive experience dealing with the various constituencies including public investors, lenders and government agencies. John’s areas of expertise include balance sheet management issues, including cash flow crisis management, inventory optimization, fixed asset utilization assessment and lender negotiations both on originating loans and loans with compliance violations.  With prior operating management experience, John also has an expertise in rapid implementation of performance improvement measures.

Who We Serve

Sr Mgmt Balance 150Senior Financial Management

As Companies grow they find their balance sheets also grow in complexity.  Often, high growth companies have small finance departments that do not have the requisite experience creating appropriate working capital and capital investment plans. Our partners can assist with the implementation of balance sheet management processes and the related monitoring of results.

Turnaround100x100Operations Management

Operators have a need to understand how their production schedules and investment decision-making relate to the overall business plans and financial goals of the company. Frequently, operations management has limited access to finance personnel for assistance in their efforts to manage their balance sheets. Our partners can provide the necessary support to operators in their efforts and can design meaningful financial reporting tools for their use in predicting and monitoring results.

Creditor meeting150Board of Directors

Good corporate governance requires the approval of annual budgets and significant capital expenditures. We can help with the development of reporting tools for the Board of Directors that provide summary financial performance measures and risk assessment of balance sheet items.

Selected Capabilities

  • Assist in development of strategic alternatives for debt and equity capital Overhead meeting 300financing and assist with due diligence. Perform financial modeling and sensitivity analyses of alternatives. Evaluate adequacy of capital structure to meet business plans. Perform associated risk analyses.
  • Assist in development of working capital and balance sheet budgets and underlying methodologies.
  • Assist in development of material requirements planning forecasts. Coordinate the consolidation and comparison of financial plans to production and inventory plans.
  • Identify slow and obsolete inventory and assist with liquidation plans.
  • Develop management reporting tools related to receivables and evaluate receivable quality, credit granting policies and receivable concentration. We can assist with ways to   mitigate the risk with concentration of credit issues.
  • Fill interim financial management needs where management turnover could cause a risk of deterioration in key balance sheet items. Provide CFO assistance with direct hire of permanent financial management personnel.
  • Develop processes and reporting surrounding capital expenditure planning including return on investment modeling and reporting.

Successful Client Engagements

  • We have staffed on an interim basis, key receivables management and collection positions for Companies ranging in size from $10 million to $550 million in annual sales. We have been providing staffing services for nearly 30 years and unlike other search firms, our CFO partners are involved in candidate screening; applying a CFO’s understanding of client needs.
  • Business Meeting300We were brought in to perform triage for an aging of a $20 million receivable portfolio and supplemented management to quickly bringing the balance back in line. We then performed a follow-on project to implement department goals and evaluation measures in order to have nearly real-time monitoring of the quality of receivables.
  • We have mentored numerous Controllers / CFOs in evaluating balance sheet risks and opportunities to assure adequacy of controls over material account balances. For two companies with identified significant and material control deficiencies we developed corrective action plans and timelines to achieve compliance. In each instance, the deficiencies were eliminated within the time estimated at project acceptance.
  •  We have assisted in review of other current assets and liabilities with an eye towards monetizing assets and extending credit granted. By way of example, we look at such areas as refunds of prior deposits, financing of insurance premiums and the timing of estimated tax payments.
  • We have assisted with debt and equity financing between $5 million and $200 million in net proceeds. We participate in the development of the overall strategy, financial modeling and forecasting, preparing for due diligence and pressure testing of financial covenants, Our experience includes both public and private transactions and we have been involved in multiple PIPE transactions.
  • We have assisted with the implementation or refinement of inventory management controls reporting for Companies ranging in size from $20 million to $650 million. These assignments have included tools to measure inventory productivity down to the sku level. We have managed systems that project future inventory balances using days of inventory on hand and planned sales. In one instance we participated in what turned out to be a nearly 20% reduction in inventory despite rising sales.
  • We have evaluated quality of inventory with a focus on excess and obsolete balances for Companies ranging in size from $20 million to $6 billion in annual sales. We have assisted in numerous inventory reduction programs involving the liquidation of excess inventories of up to $6 million.
  • We have implemented numerous capital investment evaluation models in areas such as advertising and marketing, information technologies and supply chain management.
  • We have performed investment portfolio reviews of selected assets for Companies ranging in size from $30 million to $6 billion in sales with a quantification of achieved asset returns and proposed corrective action.
CFOs2Go Blog

January 24, 2019Wage Growth Frenzy: What’s Happening and What to Watch Out For

Glassdoor’s newly published report* shows the highest wage growth in the nation is happening in … Read More


Eyeglasses and books on the laptopCheck out our Resource Center and discover useful articles, links to relevant industry sites and whitepapers on the finance industry covering topics on strategy to day-to-day operations. You’ll find back issues of the CFOs2GO newsletter “The Issue”, and webcast recordings of talks by our Partners. READ MORE