Outsourced CFO Services

For private fund managers, particularly those in the alternative investment, real estate and infrastructure arenas, an outsourced business model is increasingly becoming the solution to the many challenges General Partners and Investment Advisors face. In-depth accounting, administration and tax acumen combine with financial services experience to make O’Connor Davies the firm of choice for those facing precisely these demands.

Serving as a highly credentialed outsourced CFO or Controller, we become trusted associates to our clients’ internal staff, providing accounting, bill pay and financial reporting, tax planning and compliance, general partner and administration services and more. The outsourced solution offers significant advantages such as optimizing productivity and reducing expenses while liberating General Partners to concentrate on raising and deploying capital to promote ongoing growth.

Some firms offer accounting; others provide technology. We deliver both highly competent global professionals and a sophisticated, ever-evolving technology platform.

With an outsourced CFO and accounting model, clients benefit quickly from our respected experience, technology and human capital. Central to our practice is a multi-disciplinary approach that begins with forging a unique team of highly qualified professionals, which we can then augment with advisors experienced in addressing specific, relevant issues, as warranted. Our clients value this dedication to service just as they appreciate our dedication to value: outsourcing middle- and back-office functions often allows for the reduction of sizeable internal staff salaries, bonus expenses and employee benefits costs. Our Outsourced CFO services include:

Accounting and Financial Services for Operating and Management Companies

  • Accounting and bookkeeping
  • Journal entry preparation and entry into the general ledger
  • Reviewing monthly financial statements; valuations of investments and businesses
  • Cash flow modeling and budgeting
  • Analyzing and negotiating real estate and equipment leases; setting up journal entries
  • Taxes – tax accounting, return preparation, tax filings, estimated taxes, foreign filings (e.g., FATCA)
  • Designing and implementing internal control and accounting systems

Income Statement

  • Tracking and reporting on expense allocations between entities, divisions and third parties
  • Waterfall, carry, management and incentive fee calculation
  • Accounting policy – GAAP (IFRS, if applicable): revenue recognition and reporting, including deposits; invoicing
  • Allocations of costs and expenses
  • Expense tracking: commissions; professional fees; insurance; goodwill impairment analysis, etc.
  • Variance analysis – budget vs. actual

Balance Sheet

  • Cash management, cash flow projections and preparation of monthly bank reconciliations
  • Accounts receivable management: invoicing, collections, allowance for doubtful accounts, etc.
  • Accounts payable and bill payment; expense analysis and allocation; preparation of accrual supporting schedules relating to financial statements; vendor onboarding
  • Consolidations and reconciliation of due to/due from subsidiaries as well as other intercompany transactions
  • Proper presentation of long- and short-term debt; review of interest accruals and proper classification of debt service payments; covenant compliance analysis
  • Tracking of loan agreements
  • Fixed asset schedules including depreciation
  • Equity review: check register, review of meeting minutes; ensure proper reporting of preferred and common stock; handling of options, stock subscriptions and treasury stock
  • Preparation of audit-ready financial statements including applicable footnotes; provide audit support