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YesCFO News
YesCFO, providing chief financial officers and operating executives that serve in part-time or fractional roles.

November, 2012 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

WE'VE MOVED!
Welcome to this issue of the YesCFO newsletter. November finds us with a new address and some new faces at YesCFO. Our new address is: YesCFO 991 Route 22 West, Suite 200 Bridgewater, NJ 08807 Tel: 800-706-0636 Fax: 732-686-6481 www.YesCFO.com Info@YesCFO.com
Recent Team Additions: We are pleased to announce that Ed Lawner and Guyer McCracken both recently joined the YesCFO team as a Managing Directors. Ed Lawner is an accomplished chief financial officer who has more than 45 years' financial, operational, treasury management, human resource, information technology, facilities management and administrative experience. In addition to holding CFO responsibilities at a host of large and small businesses, Ed also did double duty as co-owner of Double E

Plating Corporation From 1981 to 1991, a specialty metal plating and polishing company, where he was responsible for overall operation of the business with particular emphasis on improving efficiencies in the manufacturing process, financial controls and compliance issues. Click here to contact Ed Lawner directly.

Guyer McCracken is an accomplished chief financial officer who also has a background with a strong operations focus. He has extensive experience leading finance and accounting functions, both domestic and international, primarily in consumer products, textiles, and manufacturing companies. Guyer is known for his "dig into the details" approach that, combined with analytical, forecasting, and business modeling skills delivers profitable top line growth, improved margins via smart cost savings, and implementation of new systems to improve cash flow. Guyer also did double duty when, prior to joining YesCFO, Guyer was the CFO and COO of TexStyle, LLC, a $ 20 million private label supplier of home textile products to major US retailers. In this role, he assisted a Chinese manufacturer in the purchase of the business, including leading due diligence, legal review, and tax planning. He also led execution of a Company restructuring, successfully taking the business in and out of Chapter 11 restructuring in six months, managing daily cash, cash forecasts, and bank relationships during a critical liquidity period. Click here to contact Guyer McCracken directly.

Upcoming Events:
On Wednesday, Nov 14, Tim Anglim, CEO & Founder of YesCFO, will be leading a discussion on "Financial Capacity for Nonprofits: An Essential Component to Nonprofit Sustainability". You may register at the following link and we look forward to seeing you there. http://grantspace.org/Classroom/Training-Calendar/New-York/Financial-Capacity-forNonprofits-An-Essential-Component-to-Nonprofit-Sustainability-2012-11-14-New-York

In This Issue: November 2012 Sandy Fraud 101 Cash Flow Output- The CFO in YesCFO

Sandy
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Disaster Relief

In the wake of Hurricane Sandy as well as Wednesday's Nor'easter snow event, we hope this newsletter finds you safe and in the positive but often difficult process of recovery. Whether directly or indirectly, Sandy has impacted virtually everyone in our region. As a public service, listed below are links to help you along this path to recovery: http://www.sba.gov/category/navigation-structure/loans-grants/small-business-loans/disaster-loans http://www.nyc.gov/html/sbs/nycbiz/html/home/home.shtml http://www.ready.nj.gov/plan/business-indust.html Disasters such as Sandy can present the obvious, immediate challenges. They also present the unexpected, unplanned-for issues down the road. Please contact us if you find yourself struggling in unchartered waters trying to either file for disaster relief or if you need assistance valuing a lost business claim. Click here to contact YesCFO. Or call us at 1-800-706-0636. Team members are available to help in any way that we can.

Fraud 101
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Business Fraud 101 - Are You Protecting Your Business ? Despite the high profile fraud cases of recent years, employee fraud continues to grow, and by some estimates represents 5-7 % of sales.

Who commits fraud? The loyal employee, the new employee, the "I knew he was up to something" as well as the "I never would have suspected" employee - all may commit fraud against their employer. All they need is incentive - which may stem from any number of factors from their own personal lives (most likely) to their feelings about the company - and opportunity - when the likelihood of being caught is low due to a lack of processes within the company such as internal controls, monitoring of books and inadequate security. Lisa Epstein, in writing on financial fraud for dummies.com, (http://www.dummies.com/howto/content/basic-types-of-financial-fraud-in-businesses.html ), notes 4 basic types of financial fraud: Embezzlement (larceny): the illegal use of funds by a person who controls those funds. "For example, a bookkeeper may use company money for his own personal needs. Many times, embezzlement stories don't make it into the paper because businesspeople are so embarrassed that they choose to keep the affair quiet instead. They usually settle privately with the embezzler rather than face public scrutiny." Internal theft: stealing a company's assets, such as office supplies or products the company sells. "Internal theft is often the culprit behind inventory shrinkage." Payoffs and kickbacks: "situations in which employees accept cash or other benefits in exchange for access to the company's business, often creating a scenario where the company that the employee works for pays more for the goods or products than necessary. That extra money finds its way into the employee's pocket who helped facilitate the access." This is, in effect, bribery, but is generally unreported or underreported by a company, although sometimes employees are fired. Epstein gives an example of this type of

fraud: "Company A wants to sell its products to Company B. An employee in Company B helps
Company A get in the door. Company A prices its product a bit higher and gives the employee of Company B that extra profit in the form of a kickback for helping it out. A payoff is paid before the sale is made, essentially saying "please." A kickback is paid after the sale is made, essentially saying "thank you.

"Skimming: employees take money from receipts and don't record the revenue on the books.

Epstein points out that any of these financial crimes can happen in a small business, but "the one that hits small businesses the hardest is embezzlement. Embezzlement happens most frequently in small businesses when one person has access or control over most of the company's financial activities. For example, a bookkeeper may write checks, make deposits, and balance the monthly bank statement." View the rest of this article at:

http://www.scribd.com/doc/112599398/Fraud-101 For more information about protecting your business, contact the experts at YesCFO. We can assess your specific business needs, and recommend simple steps that will help you avoid costly losses. Call Tim Anglim at 1-800-706-0636

Cash Flow Output- The CFO in YesCFO

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Are you wondering why your business is always tight on cash? Does it seem that the more you grow, the less cash you have? Is your bottom line growing, perhaps better than expected, yet cash is flying out the door?
It has been said that cash is the lifeblood of the business. And like blood in your veins, a business organization can bleed cash. Understanding your Cash Flow Output is the first step in having peace of mind that your business is generating the cash you need to be successful and achieve your goals. Get the benefit of having a YesCFO Financial Professional on board to help you better understand your cash cycle and better manage this key resource. We've helped identify opportunities, solve problems, and increase cash flow under difficult situations for dozens of businesses, in some cases literally saving the business and the owner's hard work. Our YesCFO interim and fractional CFO solutions can solve full-time problems on a part-time budget. Call us at 800-706-0636.

Quick Links...

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Contact Information
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YesCFO is a provider of chief financial officers and operating executives that serve in parttime or fractional roles with organizations, especially those in crisis or experiencing rapid change. YesCFO provides exceptionally qualified people who add immediate value in solving the client's problems. By providing on-demand talent, YesCFO provides the most costeffective solution to companies that are experiencing rapid change or an unstable environment - whether that is a financial crisis, industry paradigm shift, or growth opportunity. To discuss your unique situation on a no-obligation basis with a YesCFO team member, contact us now at:

YesCFO: phone: 800-706-0636 www.YesCFO.com

Info@YesCFO.com

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