About Colin Wright

Colin Wright is the founder and CEO of The Virtual CFO Group Australia, a founding member of the Association of Virtual CFOs, and a member of CPA Australia. Colin authors the Virtual CFO blog to assist business owners and advisors with commentary, examples, and experiences.
14 10, 2021

Small business and the ‘accounting gap’ issue that MUST be resolved

By |2021-10-14T15:39:07+10:0014 October 2021|

This white paper discusses the 'accounting gap' issue for small businesses - an issue that MUST be resolved for any small business to become a successful larger business. Smaller businesses face a serious disadvantage compared to larger businesses when it comes to financial management support. This can leave management unsure of how the business is performing and with a limited understanding of how the drivers of profit are behaving. This puts the business at a high level of risk, impacts its ability to raise finance, and ultimately devalues the market value of the business if the owners wish to [...]

28 09, 2021

Beware the coming CASH TRAP as your business emerges from COVID-19

By |2021-09-30T15:31:58+10:0028 September 2021|

Can your business finance its rebuilding as we emerge from the long era of COVID-19 lockdowns? As we finally move out of this prolonged period of lockdowns and border closures, many businesses that have experienced a fall in revenues will be able to start rebuilding their businesses back to pre-coronavirus levels. But how many of these businesses are fully aware of the “cash trap” they are facing? And how many have a plan for financing their businesses as they try to overcome this “cash trap”? The sad and ironic reality is that many businesses will have survived the two [...]

15 09, 2021

Accessing finance – why it’s CRUCIAL to have strong financial controls

By |2021-09-15T15:15:35+10:0015 September 2021|

Accessing debt to finance your business growth opportunities is a critically important requirement to achieve business success. All lenders place a heavy reliance on the financial reports provided by applicants. Lenders are very sophisticated businesses and they will have experienced people scrutinising the applicants for finance. If you assume their default position is that the application should be denied - and that their job is to find the reasons why it should be denied - you can also assume they will take a sceptical approach to assessing the reliability of financial reports. So, to ensure that you can verify [...]

9 09, 2021

What are the financial management requirements of your business?

By |2021-09-09T12:25:26+10:009 September 2021|

It depends on your management culture and the stage of your business lifecycle How different levels of financial management services can add value to businesses in relation to their lifecycle stage Stage 1: Start up/Early stage Requirements will vary for the different profiles of businesses in this stage. Profiles will include: Limited capital/grunt equity/lengthy early stage Well capitalised/short early stage Financial Management Issues: As the management team grows, reliable financial reporting becomes more important for profitable decision making Early-stage companies often have under-developed financial reporting capabilities. This requires appropriately structured general ledger [...]

21 07, 2021

“3 WAYS” to instantly improve business performance

By |2021-10-07T10:41:36+10:0021 July 2021|

The importance of 3-Way Forecasting in the growth phase of your business This article discusses the importance of 3-Way Forecasting in a growing business because: growing businesses face unique issues management need strategies for a range of outcomes a detailed understanding of the drivers of revenues and costs is critical to business success a detailed understanding of the impact of the balance sheet on cash reserves is critical to business success incorporating a 3-Way Forecasting system into the planning and operational activities of the business provides clarity on the impact of key drivers of business performance Growth [...]

18 06, 2020

Three Way Forecasting – managing your cash reserves

By |2021-10-14T15:36:20+10:0018 June 2020|

What is three-way forecasting and how is it performed? Colin Wright explains how understanding the future cash position of the business requires quality planning processes. This is achieved through the three-way forecast. As the name suggests, there are three components to this planning process. The profit & loss forecast determines expected cash flows from operational activities The balance sheet forecast determines expected cash flows based on the balance sheet movements of the business The cashflow forecast is determined from the profit & loss and balance sheet forecasts How well this process will forecast the cash position throughout the forecast [...]

6 04, 2020

Setting up your ‘Cash War Room’ to plan your crisis survival strategy

By |2021-09-30T15:28:48+10:006 April 2020|

Cash is the lifeblood of the business. Colin Wright explains how the business can manage liquidity through the 'Cash War Room' concept, and who should be involved in 'Cash War Room' activities. The Government has set up a War Cabinet to plan Australia’s response to the current pandemic crisis. Similarly, your business needs to set up a Cash War Room to plan your response to the unfolding crisis so that you can survive this period. The immediate risk to ongoing business is one of liquidity. Therefore, there are two key issues that all businesses need to focus on. Ensure [...]

3 04, 2020

Three phases of successfully negotiating the current pandemic

By |2021-09-15T15:15:59+10:003 April 2020|

This article explains how a business can use scenario planning and modelling to make it through the pandemic period successfully and become a stronger business on the other side. We face one of the biggest challenges to business since the Second World War. We all expect that the extreme disruption we're all dealing with could last for six months or even more. It's a fact that many businesses will not survive this period. There will be a mix of luck and natural selection that will determine which businesses survive and thrive. The luck element refers to the fact that [...]

14 03, 2020

More encompassing virtual CFO services with new ‘Executive’ package

By |2021-07-23T22:55:20+10:0014 March 2020|

Some companies need more than the usual level of assistance from a virtual CFO. This is why The Virtual CFO Group Australia has developed a specialised service offering. Colin Wright explains the 'Executive Virtual CFO' package - what it means, and when it's most needed. Our virtual CFO offering continues to develop in response to client needs. We have recently introduced our Executive Virtual CFO package as a result of these requests. The Standard Virtual CFO offering is targeted as a support package where the virtual CFO provides the planning framework for business performance targets. Along with the forecasting, [...]

26 11, 2018

Good business decisions are supported by accurate financial reports!

By |2020-04-04T00:49:59+10:0026 November 2018|

Accurate financial reports are essential for making key business decisions. How do you know if your financial reports are accurate? This article discusses the critical areas of business performance and how to ensure your metrics are meaningful. No doubt you rely on your financial reports for many of your key business decisions. Of course, there will be a range of metrics that you rely on to understand how the business is performing, but it is the financial reports that are your final arbiter of your business’s performance. Some of the critical performance areas you will want to know in [...]

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