Fractional CFO for Manufacturers
Most manufacturers know their total gross margin and almost none know it by product line, which means they're pricing and quoting on an average that hides the money-losers. A fractional CFO builds the costing that shows which products actually pay — before an input-cost spike turns a thin margin into a negative one.
The average margin is lying to you
A blended gross margin is a comforting average of products that make good money and products you'd stop making if you could see them clearly. Without real cost accounting — material, labor, and overhead absorbed properly by product — you're quoting new work off a number that doesn't apply to any actual part you build.
A CFO builds standard costs, compares them to actuals, and surfaces the variances, so pricing and product decisions run on the real economics of each line instead of a factory-wide guess.
The math behind inventory, capacity, and capex
Inventory turns, absorption, and capacity utilization decide whether cash is working or sitting on a shelf as raw material and WIP. A new machine or a second shift is a capital decision with a payback, not a reaction to a busy quarter. Get these wrong and you can be profitable on paper and starved for cash at the same time.
We model the costing, the inventory, and the capex, so pricing, make-vs-buy, and capacity investments each come with a break-even instead of a hopeful nod from the plant floor.
How Kaizen runs it
You get a senior CFO a few days a month on top of books with real inventory and cost accounting. We build product-line margins, standard-vs-actual costing, inventory and capacity metrics, a rolling cash forecast, and the models behind pricing and capex.
It's the difference between running a plant and running a business that happens to have a plant. One of those quotes profitably on purpose; the other finds out at year-end which jobs it gave away.
What's included
- True gross margin by product line
- Standard-vs-actual cost accounting with variance analysis
- Inventory turns and absorption reporting
- Capacity-utilization and throughput metrics
- Pricing and make-vs-buy models
- Capex and equipment payback analysis
- 13-week rolling cash forecast
- Monthly board-ready KPI and margin pack
Pricing
Straight answers
We have a controller already. Why a CFO?
A controller keeps the books accurate; a CFO uses them to run pricing, product mix, capacity, and capital decisions. Many manufacturers keep their controller and add us for the strategy and costing layer.
Can you build real product-line costing?
Yes — standard costs, actuals, and variance analysis so you know margin by product, not just a blended factory number. It's usually the first thing that changes how you quote.
Are we too small for this?
If you make one simple product and your books are clean, a good bookkeeper and a CPA may be enough — we'll tell you. Multiple product lines, real inventory, and capacity decisions are where a CFO pays for itself.
Do you replace our accounting team?
No — we sit on top of it, or bring our own bookkeeping if you'd rather. The CFO work is costing, forecasting, and capital strategy on a clean books foundation.
Related
Free 20-minute books assessment
We'll show you the five things we'd fix first in your books — useful whether you hire us, hire someone, or do neither.
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