10 May What is today’s CFO concerned about?
In times of economic uncertainty, cash management is one of the main concerns of a company’s CFO Irrespective of the size of their company, these professionals must ensure that their cash management is in line with the business.
4 tips for the CFO
After more than 25 years’ experience in various financial functions and the last 10 years as a consultant making my clients’ concerns my own, I can sum up these 4 tips for the CFO:
- Train the entire company on financial aspects so that treasury is a conversation topic at all corporate levels and that everyone is aware of the implications and consequences of cash management for the business.
- Know which financial indicators are critical to the business so that the company has a robust cash forecast.
- Collect all the information to build action scenarios that make it easier to anticipate troublesome situations; we need to know in advance what we can do.
- When the situation calls for it, review the income statement and balance sheet to see where to get some leverage.
How to obtain a good cash flow forecast?
When I am asked to summarise the characteristics that a good cash flow forecast should have, I always mention the medium used, the time scenario and the integration with other tools:
1. The medium on which it is displayed
Gone are the days when the CFO had to mull over a difficult-to-understand Excel, spreadsheets with complex macros and roundabout references that required all formulas to be checked.
Today, in the world of immediacy and quick decisions, cash forecasting must be available right away with the click of a button, accessible from anywhere and with real-time automation of all cash flows. We need to consider a SaaS solution to help us control the cash flow forecast.
The cash forecast should anticipate cash flows for at least 12 months, with details for the following month and even for the week and days ahead.
This makes it easier to know the peaks and troughs of the business that are hidden in the monthly figures and to be able to manage them properly so that the financial aspect merges with the operational one.
We want to show you how our solutions enable you to improve the financial management of your company.
Our services include:
- Cash Management Solutions
- Payment Hub
- Cash Accounting
- Risk management and financial transactions
- Bank Connectivity
- Business Intelligence