In this edition of On the Couch, we sit down with Andy Collis, contract chief financial officer (CFO) and founder of OTS Projects Ltd. With experience across multiple industries, Andy specialises in cash flow management and helping businesses understand the key drivers behind financial success. He shares insights with Nelson Magazine on his work, what drives him, and how he helps businesses to thrive.
Can you tell us about your journey to founding OTS Projects?
While working as a company CFO, I took on a parttime contract CFO role to help a business change its financial direction. When my family moved to the top of the South, I followed my passion and grew my contract CFO clientele.
Can you explain the role of a contract CFO and the types of businesses that would benefit most?
Being the CEO of a small to medium business can be isolating, especially when making strategic decisions. A CFO provides high-level financial leadership on a flexible basis. Not all companies can afford a full-time CFO, but few can afford to go without a financial strategy.
Why are cash flow management and business drivers so important? Cash flow is the lifeblood of any business. Many focus on profit, but it’s cash flow that makes a business resilient. Understanding business drivers helps predict the company’s direction in the short and long term. Combining cash flow knowledge with key business drivers allows owners to make informed decisions on investment, dividends, and growth.
How do you help businesses cut through the noise and make informed decisions?
Year-end or monthly management accounts are out of date the day you receive them. Financial numbers reflect past actions – so don’t just analyse the numbers, analyse the business drivers. Learn from history, but don’t focus on it. Success comes from understanding what drives those numbers and taking action accordingly.
How has working across various industries shaped your approach to financial leadership?
Every business is unique, but financial management is a universal language. Ultimately, all businesses rely on cash flow; the levers to pull just differ. That’s why understanding revenue and cash flow drivers is critical.
What’s a common financial mistake businesses make, and how can they avoid it?
A growing business can be profitable on paper, but profit does not equal positive cash flow. Cash flow forecasting is challenging due to many variables, but it’s essential for financial stability.
If you could give one piece of financial advice to business owners, what would it be?
Understand and track your business drivers. Financial reports reflect past results – they’re result indicators, not performance indicators. Focus on the factors influencing those results to drive smarter business decisions and better financial outcomes.
