Spotlight: How Scrubbed is Helping Its Local Farmers Grow

Scrubbed

Scrubbed

Spotlight: How Scrubbed is Helping Its Local Farmers Grow

Social responsibility is at the heart of the Scrubbed mission and part of the fabric of our corporate finance advisory services and and real estate accounting solutions. We demonstrate that responsibility in many ways, year-round, including our semi-annual work with a local farmer’s cooperative.

When rice farmers in the Philippines sell through traders, of course they receive compensation for the sale—but not as much as they would if they sold to consumers directly. To help them earn more on what they grow, Scrubbed devised a program that benefits both the local farmers and the broader community.

You might also want to visit our Nonprofit page

Better Yields = Even More Profit

Beyond the immediate benefits of earning market price on their rice, the farmer’s cooperative is seeing ripple effects from this program.

With a higher share of the purchase price going straight to farmers, they now have more funds to invest in irrigating their crops. That can result in a higher crop yield, which allows the farmers to earn even more than they could otherwise. It’s an economic cycle that continues to pay dividends.

Give One. Get One.

In keeping with our mission, Scrubbed encourages our team to pay it forward by sharing half of their rice subsidy with others in the community. When our Scrubbees “give one and get one,” they demonstrate our community focus and tradition of giving.

Sharing some of our prosperity is central to what we believe in at Scrubbed! It’s also a great way to attract and retain not only the most talented and experienced accounting and finance professionals, but enlightened people who share our passion for giving back to the community.

Eventually, we hope this small rice subsidy program expands in ways that ultimately benefit the planet, too. The higher the volume of rice we buy directly from farmers, the more we can influence them to grow using organic methods that have a positive ecological impact.

Related Content

Blogs

Are Fractional CFOs the Future for Growing Companies?

Are Fractional CFOs the Future for Growing Companies?

As businesses scale or significantly change, they often face new financial challenges that require specialized expertise. While hiring a full-time Chief Financial Officer (CFO) might seem logical, many companies find that a fractional CFO can provide the same level of expertise with added flexibility and cost-effectiveness. To explore this trend, we spoke with Robert Weis, a seasoned expert in fractional support. Over 36 years ago, Weis identified a unique need in the market: venture capital-backed companies with accelerated growth expectations required immediate financial guidance, but not necessarily on a full-time basis. This led to the creation of CFOs 2Go™, a partnership providing part-time and interim CFO services tailored to the specialized needs of companies across more 20 industries and stages including high-growth. Today, this concept has expanded into the 2Go Advisory Group, which offers fractional C-suite services across a wide range of functions including CEOs, COOs, CHROs, and CIOs Weis shared his thinking about the value of fractional support and why fractional CFOs have become the go-to solution for companies experiencing breakdown or anticipating a breakdown due to a change in business operations including from growth. What exactly is a Fractional CFO? A fractional CFO is a financial expert who works with a company on a part-time or interim basis, offering financial leadership tailored to the business’s specific needs. This arrangement allows companies to access high-level financial expertise and guidance on demand and without the commitment of a full-time hire. In many cases, this expertise extends into niche areas such as real estate accounting solutions, tax strategies, or financial system implementations. What are the benefits of engaging with a Fractional CFO? The primary value of a fractional CFO lies in their ability to provide strategic business advisory services from a financial perspective. Fractional CFOs typically focus on high-level tasks and delegate routine accounting work, sometimes to other fractional finance and accounting professionals, ensuring clients receive real value from the engagement. This strategic approach is particularly beneficial for companies experiencing rapid growth or navigating complex financial challenges. There are several benefits to working with a fractional CFO at different points in a company’s lifecycle: AffordabilityHiring a full-time CFO can be expensive, and for many small to medium-sized businesses, this is not a feasible option. Weis highlights cost flexibility as a key advantage of the model. “With fractional CFOs, the job description can be narrowed and the hours to fulfill reduced to meet affordability goals of different clients. There is even the opportunity to take the billing rate down a little occasionally and take some of the compensation deferred or in stock.,” he says.This more adaptable compensation model can be particularly relevant for pre-funded companies or underfunded turnarounds.Flexibility and Scalability“Not all companies need a full-time person who will come in and work 50- hours a week,” notes Weis. “We can offer somebody that can work an agreed-upon number of hours per day, per week, or per month – whatever they need.”Companies can adjust the level of service based on their current needs, and the fractional CFO can scale their involvement to match the company’s growth and evolving financial requirements. The model also offers a lower level of risk when a company is growing quickly or trying to change direction than hiring a full-time CFO.Access to Specialized ExpertiseFractional CFOs, like other fractional finance and accounting experts, bring a wealth of experience from working with various industries and in different financial situations. At CFOs2Go™, Weis oversees 35 partners organized around more than 20 different practice groups for industry sectors or challenges, from Agriculture, Food & Beverage and Consumer Products, to International, Mergers & Acquisition and Crisis Management.This diversity allows CFOs2Go™ to provide specialized expertise that might not be available in-house to a company. Whether navigating a financial turnaround, preparing for an IPO, or implementing a new financial system, a fractional CFO can offer targeted skills and insights that drive business success. When should companies consider hiring a fractional CFO? Knowing when to engage a fractional CFO can make a real difference to your company’s growth trajectory and strategic direction. Some key situations where the expertise of a fractional CFO can help include: During Rapid GrowthIf your company is experiencing rapid growth, a fractional CFO can help manage the financial complexities of expansion. They can assist in scaling operations, securing financing, and ensuring that financial systems and controls are robust enough to support growth.During Significant ChangeWhile fractional CFO services have their roots in early-stage companies, much of the current fractional CFO services are in more established companies that are experiencing changes in their business operations as new products or services, geographic locations, systems, financings or ownership structures.For example, in a recent engagement, Weis worked with an established specialty manufacturing company that had grown quickly during a management change. The suddenness of the change revealed some weak internal controls that had resulted in an embezzlement. “We had a fractional CFO go in and implement the necessary improvements”, he says.However, the engagement wasn’t just about providing short-term support. The fractional CFO also took on the role of mentor to the company’s CFO, who had a controller skillset, so he could develop the relevant skills of the CFO over time This investment in the current “CFO” tends to produce a very loyal employee.Financial TurnaroundsIn times of financial distress, a fractional CFO can provide the know-how to stabilize the business. They can develop and implement turnaround strategies, negotiate with creditors, and optimize cash flow to help the company regain its financial footing.Temporary Gaps in Leadership or CompetencySometimes, companies face temporary gaps in their financial leadership due to sudden departures or leaves of absence. At other times, some needed temporary experience may not be available in-house. “Sometimes, specific elements of a CFO’s job description become important or even critical that require outside supplementary help to the current CFO- for example, tax, bank, exchange compliance audits or succession, mergers & acquisition or corporate development They need someone with the expertise and experience to come in and deal with the problem so the business can move on.”A fractional CFO can fill these gaps, ensuring continuity in financial management and providing the stability needed during transitional periods. In many cases, this support includes corporate finance advisory services, helping businesses navigate complex financial challenges with precision and strategic insight. The goal is to transition from fractional to full-time financial leadership as the company grows and the fractional CFO can play a role in helping clients develop a robust internal financial department. How does the process of engaging a Fractional CFO work? At CFOs2Go™, onboarding prospects typically starts with a conversation with Weis, who then determines the appropriate expert or practice group to refer them to. Next comes an assessment where CFOs2Go™ puts a limited number of hours into understanding the client company. “We interview certain people and review their systems and records,” says Weis. “It’s not meant to be definitive; it’s meant to be directional.” For instance, in one scenario, Weis encountered a company where the CFO, an intern-turned-executive with minimal accounting education, struggled to meet financial reporting standards. The assessment showed that mentoring the existing CFO and augmenting the team with additional expertise would provide the best outcome. After the initial assessment, the fractional CFO works with the company’s existing team to implement strategies and solutions. They often work alongside other financial professionals, including outsourced financial and accounting teams like Scrubbed’s. By leveraging the strengths of various financial experts, fractional CFOs can focus on providing high-value strategic work while ensuring day-to-day financial operations are effectively managed. What is the Future for Fractional CFOs? Fractional CFOs represent a forward-thinking approach to how companies manage their financial operations. Looking ahead, Weis envisions a growing demand for the flexible, high-level financial expertise of fractional CFOs, driven by the increasing complexity of the business environment. ” “We try to match the need to the expertise, he says, and I think that’s only going to become more important to businesses as the marketplace demands become more challenging.” How does the process of engaging a Fractional CFO work? At CFOs2Go™, onboarding prospects typically starts with a conversation with Weis, who then determines the appropriate expert or practice group to refer them to. Next comes an assessment where CFOs2Go™ puts a limited number of hours into understanding the client company. “We interview certain people and review their systems and records,” says Weis. “It’s not meant to be definitive; it’s meant to be directional.” For instance, in one scenario, Weis encountered a company where the CFO, an intern-turned-executive with minimal accounting education, struggled to meet financial reporting standards. The assessment showed that mentoring the existing CFO and augmenting the team with additional expertise would provide the best outcome. After the initial assessment, the fractional CFO works with the company’s existing team to implement strategies and solutions. They often work alongside other financial professionals, including outsourced financial and accounting teams like Scrubbed’s. By leveraging the strengths of various financial experts, fractional CFOs can focus on providing high-value strategic work while ensuring day-to-day financial operations are effectively managed. How Scrubbed can help At Scrubbed, we offer global expertise tailored to your unique needs. Our comprehensive solutions, from accounting to advisory, are designed to drive your success. Learn more about how Scrubbed teams work alongside fractional CFOs to unlock potential, transform challenges into opportunities and pave the way for a prosperous future. To discuss your firm’s unique challenges and pain points, and find out how Scrubbed can collaborate with you to unlock your business’s full potential, contact us to schedule a meeting. About CFOs2Go™ CFOs2Go™ is a division of 2Go Advisory Group™, a San Francisco Bay Area-based pioneer in fractional C-suite services, utilizes its consulting partners and recruiting to customize solutions across executive functions. Business owners and executives value our expertise which spans dozens of industry sectors and practice disciplines. With over 35 years at the forefront of fractional executive services, our flagship CFOs2Go® has evolved to include COOs2Go™, CHROs2Go™, CIOs2Go™, CROs2Go™ and Talent2Go™. Our multidisciplinary approach helps you navigate change, enhance executive leadership, execute business strategy, and operate in both the U.S. and internationally. The firm utilizes technology and a network of C-Level consultants to provide local representation in virtually every metropolitan community in the U.S

Blogs

Why Accounting For Real Estate Agents is So Important

Why Accounting For Real Estate Agents is So Important

You studied hard to pass the Sales Persons’ or Brokers’ course. You got your license and now you’re in business. Except, you don’t know anything about accounting for real estate agents!Don’t panic. Here’s a quick guide that will get you started in the right direction.SHOULD YOU HIRE AN ACCOUNTANT?The simple answer is yes, as soon as possible. An accountant can help you get organized about things that happen over time. So the sooner you get squared away, the greater the rewards will be in the long run.There are many terrific reasons for hiring an accountant. Starting from the beginning, an accountant can help you develop a business plan.You may think that real estate is a kind of “typical business” where you already know the business plan. You might think that your broker is going to just tell you what to do. There is some truth to both of these statements, but you had better not bank on it!As a real estate professional, there are all kinds of different business plans. You could focus on a particular area or a particular kind of media. Are you in residential real estate, commercial or timeshares?In any case, there will be different requirements and different tax implications for different business plans. Your accountant can help you design the best technical business plan for your approach. This should be one of your first steps before you actually start making transactions out in the wild. Utilizing technical accounting support early on can ensure your financial foundation is strong and aligned with regulatory standards.KEY COMPONENTS OF A REAL ESTATE BUSINESS PLANEven if you are a first-year sales agent, you should create a business plan. Your accountant* will help you do it. Create the business plan according to typical standards for a small business.In other words, call a section the “Executive Summary.” Not “Strategic Plan” or anything else. The specific phrase Executive Summary will be expected whenever a professional looks at your business plan.There are many resources on the internet to help you create a business plan. It’s pretty standardized, and you don’t need to look at resources specific to real estate. You are a “small business,” and information in that general category applies to you.Here are the typical parts of a real estate business plan.Executive SummaryThe executive summary is a short summary of the rest of the business plan. Describe who you are and what kind of business you are in, what kind of real estate you are doing (commercial, residential, etc.), your mission or vision statement, the reason you are making a business plan, and the company name and location plus your specific relationship to the company (are you an agent, an owner, or an affiliate?).Company DescriptionIf you do not own the company–for instance, if you are a sales agent–make that very clear in this section.Products and ServicesWhat kind of real estate business are you in? How do you collect money from the client? Do you offer escrow?Market AnalysisExplain the market you plan on selling in. Do you plan on selling in a specific geographic area? What is the demographic breakdown of the area you plan to sell?What are the schools like in those areas? What have been the recent price differentials in that area, and compare all that data to national and historical trends. Be sure to do your homework.Strategy and ImplementationHow are you going to execute your plan? What kinds of commissions do you plan on charging the client? How are those commissions broken down?What are your expenses going to be? How do you plan on paying for those expenses?Organization and Management TeamWho is on your team? Don’t include people in this section without their explicit permission.Financial Plan and ProjectionsHow much money do you need to operate for the next year? Where do you plan on getting that money?What if sales are worse than expected, and costs are higher than expected? What sales volume do you need to make, to not go broke?YOUR LAWYER AND YOUR ACCOUNTANT ARE A TEAMThere are many situations when lawyers and accountants are actually part of a team. This is a service large firms and small partnerships offer. But you can make your own team as most lawyers have no problem working with most accountants.This is another reason to handle your real estate broker accounting early on in your business’s development. Get a lawyer and get an accountant, give them each other’s phone number. They can coordinate with each other and often good things can happen, even for a small business.Both of these professionals can offer advice on what kind of legal your business should become. If you’re a sales agent, you’re generally considered a 1099 contractor. If you’re setting up a brokerage, it can be an LLC or even a legal corporation.The bottom line is that you want the right hand talking to the left hand. Get your lawyer and your accountant together on the phone at least, so that they both know what the other is doing.SOFTWAREA huge part of bookkeeping for real estate is the software that you use. This can either make your life a breeze or a nightmare so choose wisely. Once again, this is something a real-life accountant can advise you on. Think this through up front and you will compound the benefits gained from using good software.Good software integrates directly with your financial institution and your accounting system. There are many systems on the market that all basically do the same thing. One good solution is to find an accountant first and go with the software package they are familiar with.Be aware that many commercial platforms for small business have “extensions” or “plugins” that are specifically for real estate professionals. Check with your provider to see if something like that is available on your platform.RealtyzamRealtyzam is a cloud-based real estate accounting software platform specifically designed for the real estate business. It comes setup already with templates for listing fees, brokers fees, commissions and other popular real estate transactions.Realtyzam is available for Android and iOS and both desktop and mobile-based devices. There is no flat fee as it’s a monthly subscription fee pay model.XeroXero is a cloud-based account platform that allows you to manage and integrate your accounts remotely from anywhere. This is one of the best programs for real estate professionals because it links directly with your accountant’s software. If you have an expense, you just enter it once, and it’s done.This is a big time saver. You don’t need to consolidate anything at the end of the year, it’s already entered and shipped right over to your accountant. They take the data and collect it for your tax returns.Another great feature of Xero is that you can use Quickbooks with it. You don’t have to, the Xero platform has everything you need, but if you’re already on Quickbooks, no problem. There is a handy import tool that can handle any kind of standard input.Xero is a monthly service as well. Ask if your accountant can offer a free subscription to Xero.Quickbooks Self EmployedIf you are a sales agent, you may not need all the complex tools available in products like Xero. Quickbooks Self Employed is a great bookkeeping package that helps you keep personal and business expenses separate, and generate reports and tax forms at the end of the year.This is a simpler type of package, and you can do this if you have an accountant or not.BOOKKEEPINGReal estate agent bookkeeping is a relatively straightforward process. You’re not reinventing the wheel, you’re employing a tried and tested business model. That’s why it’s important to get advice from an experienced professional.It’s really a factor of how big an organization you are developing is, which will determine if you need a full-time bookkeeper or not.The general rule for real estate is a company of ten people or more needs a full-time bookkeeper. Less than that, and you can get away with only using digital products.You have to keep track of your expenses and costs. The easiest way to do this is to develop a system to record everything, and then just commit to using it. You could collect physical receipts or you can collect them using some kind of software, it’s up to you.Your software suite will integrate with your accounting software and create a pretty good bookkeeping platform, especially for a very small business.ACCOUNTING FOR REAL ESTATE AGENTSGet yourself straightened out in the beginning, and you’ll do great in your real estate business. Accounting for real estate agents isn’t much different than accounting for any small business, but it’s different enough that you need experienced representation to make progress. Many accounting firms that support real estate professionals also specialize in nonprofit financial reporting, which requires a similar level of technical precision and compliance awareness, so choosing the right partner ensures you’re covered on all fronts.By streamlining your new accounting process, you can get back to doing what you do best: selling real estate! Check out our blog for more information on small business accounting.

Blogs

5 Accounting FAQs on the Minds of Today’s Biotech Leaders

5 Accounting FAQs on the Minds of Today’s Biotech Leaders

Succeeding in the competitive biotechnology space demands more than finding scientific breakthroughs in the multifaceted challenges within the field. Handling your accounting and finance function effectively and efficiently is equally critical to a thriving company. That’s where biotech accounting services play a key role in ensuring compliance, efficiency, and growth. But economic headwinds, complex regulations, a dynamic industry, and a continually changing tax code make it difficult to keep up—especially if you have a lean staff focused on other, value-add activities. Scrubbed understands the challenges biotech founders and leaders face in handling their accounting and finance processes—as well as the unique issues and nuances in the industry. Based on our experience working with biotechs and other life sciences companies, we find the following are among the most frequently asked questions about biotech accounting and finance.Need help with Biotechnology accounting? Visit our page for free consultation.1. How should we recognize revenue for our biotech products and services? Revenue recognition is complex for biotech companies for a variety of reasons. For instance, biotechs commonly enter into third-party collaborations to further their drug development and commercialization, gaining a partner to share the costs and risks. Whether you decide to engage with a Contract Research Organization (CRO) to enhance your in-house R&D efforts, or you already secured regulatory clearance and require a Contract Manufacturing Organization (CMO) to expand production capabilities or seek a co-marketing partner to extend your reach, these partnerships introduce complexities into revenue recognition. Selling or licensing your intellectual property (IP) also complicates revenue recognition. And when IP licensing is packaged with other services, such as contract R&D or manufacturing, the picture becomes even cloudier. Keeping current with the most recent accounting standards for revenue recognition (including ASC 606) and applying them properly requires the help of an experienced partner that’s worked with many biotech businesses. There are a few simple, clear-cut answers, but the following five-step process is a good starting point for recognizing revenue: Identify the contract terms with each customer or relevant collaborator, including price, delivery dates, and payment. Understand the performance obligations in each contract and establish what goods or services you’re obligated to provide. Determine the transaction price you’ll recognize as revenue. Allocate the transaction price to the performance obligations, based on the relative standalone selling prices of the goods and services. Recognize revenue as each performance obligation is satisfied. The criteria for satisfying those obligations will vary based on the type of contract, especially when you work with third-party collaborators. 2. What’s the best way for our biotech company to raise capital? In an industry that can be capital-intensive, the ability to fundraise successfully is critical to your long-term success and short-term viability. Yet, long development cycles and high risks can deter investors or cause them to favor companies that are at or near the clinical trial phase. The current economic headwinds make it an especially challenging time for biotechs to raise capital—particularly in the wake of Silicon Valley Bank’s fall and the lingering effects it’s projected to have on biotech fundraising. Since you’ll likely go through multiple rounds of financing before your product reaches commercialization, raising capital will remain an important objective throughout your lifecycle. And the best source and type of capital will likely differ at every stage. Relevant capital sources can include: Grants from government agencies (like the National Institutes for Health) and corporations (including some of the largest pharmaceutical companies); Partnerships with research universities that have strong biotechnology programs; Angel investors and venture capital firms, which tend to invest in early-stage biotechs; and Private equity firms, which tend to get involved later in a biotech’s lifecycle. Then there is the question of whether to use debt or equity financing to raise capital. Each approach brings advantages and disadvantages, so it’s best to consult with an experienced accounting and finance firm that specializes in serving biotechs. Generally speaking: Debt financing can be a faster way to raise capital. But it’s become costly in today’s high interest rate environment, and the resulting debt service will restrict your cash flow. Equity financing requires giving up a portion of your ownership in the business, so you need to be careful not to dilute ownership more than what is necessary. Scrubbed’s Guide to Early-Stage Funding is a great resource on this complex subject. Your accounting and finance partner can also help guide you in raising capital based on your stage of development and business objectives. 3. How can our biotech business budget and forecast effectively? Proper budgeting and forecasting are essential for biotechs for the same reasons that fundraising is critical. A capital-intensive business, coupled with lengthy product development cycles, makes it essential to manage your capital and forecast your revenue and expenses accurately. While every biotech business has unique characteristics, most of them need to budget for R&D (which often makes up the lion’s share of expenses), along with salaries and benefits for PhD-level scientists and the cost to set up a Scientific Advisory Board. Once you reach the clinical trial stage, you’ll need to budget for the trial’s ongoing expenses while maintaining good cash flow. These are just a few of the many budgeting issues that biotech issues face. In Scrubbed’s experience, best practices like the following can help your biotech company budget and forecast with confidence: Involve all stakeholders, including management, other employees, and investors. Use historical data for budgets and forecasts to improve their dependability. Stay agile to accommodate changes in the business environment. Review budgets and forecasts regularly to ensure they’re accurate and relevant. Lean on today’s sophisticated modeling tools to develop dynamic forecasts (which an outsourced accounting and finance partner like Scrubbed can help with). 4. How can we optimize our biotech’s tax strategy? Though the specific taxes you’re subject to will vary by location, business structure, and activities, there are some common aspects to consider in optimizing the tax strategy of your biotech business. Research and development (R&D) tax credit: This federal tax credit is available to businesses that conduct qualified R&D activities, and some states offer a similar credit. International taxes: If you operate internationally, it’s important to understand the tax implications and ensure you’re meeting the requirements. Transfer of IP: Some biotechs find it tax-advantageous to develop IP in one jurisdiction, then transfer it to a subsidiary or other internal entity in a different jurisdiction. It’s critical and complex to handle this transfer correctly from an accounting standpoint. Tax impact of prescription drug fees. Any drug fees your biotech may owe per the Patient Protection and Affordable Care Act will impact your tax accounting. Since these fees aren’t tax deductible, they create a difference between your income for financial reporting purposes and your taxable income. As regulatory and compliance pressures increase, especially in areas like ESG reporting services, it’s best to understand how such fees affect your broader financial disclosures and sustainability metrics. These are just a few of the many tax strategy considerations and implications for biotech businesses. Since tax accounting is never straightforward, partnering with an experienced accounting and finance firm that knows the biotech industry is always a smart move. 5. How should we evaluate potential acquisition targets and integrate them into our business? Mergers and acquisitions (M&A) can be a boon to biotechs and life sciences companies. Whether you’re looking to acquire an emerging business that offers IP or other assets of value, or you’re interested in merging with a larger entity that can give you access to new products, expand your R&D capabilities, or enable you to enter new markets, M&A may be an important part of your business strategy. But identifying the best acquisition target to achieve your business objectives, then integrating it into your operations, is not an easy task. While every deal is different, as a general rule, it’s best to closely evaluate a potential target from three perspectives: How financially healthy is the company, in terms of revenue, expenses, debt, and cash flow? Does this company provide a good strategic fit with your business, in terms of its products, technologies, markets, and customers? How strong is the target company’s management team, as reflected in its experience and track record? Once you’ve selected the target company, you need a plan for integrating your entities quickly, efficiently, and effectively, across every function. Assess each company’s operations, including products, technologies, processes, and people, and determine how to best integrate them. Be sure to include a communication plan that outlines how you’ll inform employees, customers, investors, and suppliers. You also need to handle the M&A transaction correctly from an accounting perspective, but here again, there are complexities. For example, the standards that guide accounting for an M&A transaction vary based on whether the entity you’re acquiring is considered a business or an asset. How Scrubbed can help? It takes experience and expertise to guide biotech and life sciences accounting in today’s complex environment. That’s why many biotechs and life sciences companies count on Scrubbed as their outsourced accounting and finance partner. Scrubbed understands the nuances and complexities of accounting and finance in your industry, along with the challenges you face in a complicated and ever-changing market. Our experienced team and proven practices enable us to handle your accounting and finance needs with ease. Schedule a call with a Scrubbed expert to learn how we can help your biotech or life science company thrive!