What comprises the accounts receivable for Focus Cfo?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Accounts receivable are comprised solely of invoices to clients receiving CFO services. The Company continually monitors the balances and has a strong history of collections. Additionally, the receivable is offset by the accrued compensation payable to the franchisees and licensees for services provided to the clients. The payable is not paid to the franchisees and licensees unless payment is received from clients. Based on this, management believes the accounts receivable as of December 31, 2024 and 2023 are fully collectible and any estimate for loss is immaterial to the consolidated financial statements. When a receivable is deemed uncollectible, the Company uses the direct write-off method.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, the accounts receivable are solely invoices to clients who are receiving CFO services. Focus Cfo monitors these balances and reports a strong history of collections. The accounts receivable is offset by the accrued compensation payable to the franchisees and licensees for services provided to the clients.
Focus Cfo does not pay franchisees and licensees until payment is received from clients. Because of this, the company's management believes the accounts receivable as of December 31, 2024, and 2023 are fully collectible, and any estimate for loss is immaterial to the consolidated financial statements.
When Focus Cfo deems a receivable uncollectible, the company uses the direct write-off method. This means that the uncollectible amount is directly expensed in the period it is determined to be uncollectible, rather than using an allowance for doubtful accounts.