Advisors, Business, Finance, Strategy

Good CFO vs. Bad CFO: Key Differences

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March 1, 2023

- Advisors, Business, Finance, Strategy

A Chief Financial Officer (CFO) is a critical member of any organization’s leadership team. They are responsible for managing a company’s finances, creating financial strategies, and ensuring the financial health of the company. However, not all CFOs are created equal. There are good CFOs and bad CFOs

Here are key differences between a good CFO and a bad CFO:

1. Strategic Thinking
A good CFO is a strategic thinker who understands the big picture and can develop financial strategies that support the company’s overall goals. They analyze financial data and provide insights that can help guide decision-making. In contrast, a bad CFO focuses solely on the financials and doesn’t understand the broader strategic objectives of the company. They may also lack the ability to communicate financial information in a way that non-financial stakeholders can understand.

2. Risk Management
A good CFO is proactive in identifying and managing financial risks. They anticipate potential problems and develop strategies to mitigate them. They also work with other departments to ensure that risk management is integrated into all aspects of the business. In contrast, a bad CFO may be reactive and fail to identify risks until they become major problems.

3. Communication Skills
A good CFO is an excellent communicator who can explain complex financial information to non-financial stakeholders. They also understand the importance of transparency and provide regular updates on the company’s financial performance. In contrast, a bad CFO may be poor communicators who struggle to explain financial information to others in a way that is easily understood.

4. Operational Efficiency
A good CFO is always looking for ways to improve the efficiency of the company’s financial operations. They streamline processes and implement technology solutions that can help the company operate more efficiently. In contrast, a bad CFO may be resistant to change and fail to implement new processes or technologies that could benefit the company.

5. Ethical Standards
A good CFO operates with the highest ethical standards. They are transparent in their financial reporting and ensure that the company is in compliance with all relevant regulations. They also establish a culture of integrity throughout the organization. In contrast, a bad CFO may engage in unethical practices such as misreporting financial information, which can lead to legal and reputational problems for the company.

Conclusion
A good CFO is an essential member of any organization’s leadership team. They are strategic thinkers, proactive risk managers, excellent communicators, and are always looking for ways to improve the efficiency of the company’s financial operations. In contrast, a bad CFO may lack these essential skills and could potentially harm the financial health of the company. By understanding the key differences between a good CFO and a bad CFO, companies can make informed decisions when selecting a CFO for their organization.
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Uncategorized

How fractional CFOs help small- and mid-size businesses.

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January 5, 2023

- Uncategorized

Small and mid-size businesses (SMBs) often face unique challenges when it comes to managing their finances. Many of these businesses may not have the budget or need for a full-time Chief Financial Officer (CFO). This is where fractional CFOs come in. In this blog, we will explore how and why fractional CFOs can help small and mid-size businesses.

What is a Fractional CFO?
A fractional CFO is a professional who provides part-time CFO services to small and mid-size businesses. These professionals have the skills and expertise of a full-time CFO but work on a flexible basis, allowing businesses to access their services as needed.

How Fractional CFOs Help SMBs

1. Cost-Effective
One of the most significant benefits of fractional CFOs is that they are cost-effective. SMBs may not have the budget to hire a full-time CFO, but fractional CFOs offer their services at a fraction of the cost. This allows businesses to access high-quality financial advice and support without breaking the bank.

2. Expertise and Experience
Fractional CFOs bring a wealth of expertise and experience to the table. They have worked with a variety of businesses and have a deep understanding of financial best practices. This means that they can provide valuable insights and advice to businesses, helping them make informed financial decisions.

3. Customizable Services
Fractional CFOs offer customizable services, which means that businesses can access the exact level of support they need. Whether a business needs help with financial forecasting, budgeting, or accounting, fractional CFOs can tailor their services to meet those needs.

4. Flexibility
Fractional CFOs offer flexibility in terms of their availability and the services they offer. They can work on a part-time or temporary basis, depending on the needs of the business. This allows businesses to access financial support when they need it most, without having to commit to a long-term contract.

5. Improved Financial Management
By working with a fractional CFO, SMBs can improve their financial management. Fractional CFOs can help businesses create financial strategies, manage cash flow, and develop financial reports that can help guide decision-making. This can lead to improved financial performance and better overall business outcomes.

Conclusion
Small and mid-size businesses face unique challenges when it comes to managing their finances. Fractional CFOs offer a cost-effective and flexible solution to these challenges, providing businesses with access to high-quality financial advice and support. By working with fractional CFOs, SMBs can improve their financial management and make more informed financial decisions, leading to improved overall business outcomes.

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Analytics, Business, Finance, Strategy

Transforming your finance function.

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December 24, 2022

- Analytics, Business, Finance, Strategy

Finance transformation is the process of improving and modernizing the financial systems, processes, and capabilities of a business or organization. This can involve a wide range of activities, including adopting new technologies, streamlining financial reporting, improving budgeting and forecasting, and enhancing risk management practices.


One of the main drivers of finance transformation is the increasing complexity and speed of business operations. In today’s fast-paced, global economy, companies need to be able to respond quickly to changes in market conditions and customer needs. This requires robust and agile financial systems that can provide timely and accurate financial information.


Another key factor driving finance transformation is the need for improved efficiency and cost-effectiveness. As businesses grow and evolve, their financial systems may become outdated or inefficient, leading to increased costs and reduced competitiveness. By modernizing financial systems and processes, businesses can improve efficiency and reduce costs, freeing up resources for other areas of the business.


There are several key steps that businesses can take to successfully implement a finance transformation:

  1. Identify the key areas that need improvement: This can involve conducting a thorough assessment of current financial systems, processes, and capabilities, and identifying areas that are causing bottlenecks or inefficiencies.

  2. Develop a clear roadmap: Once the areas in need of improvement have been identified, it’s important to develop a clear plan for how to address them. This can involve setting specific goals and objectives, outlining a timeline, and identifying the resources needed to achieve success.

  3. Adopt new technologies: One of the most effective ways to modernize financial systems is to adopt new technologies that can automate and streamline processes. This can include implementing financial software, such as enterprise resource planning (ERP) systems or cloud-based accounting platforms.

  4. Enhance financial reporting and analysis: Improved financial reporting and analysis is critical for making informed business decisions. By implementing new tools and techniques, businesses can better understand their financial performance and identify areas for improvement.

  5. Focus on continuous improvement: Finance transformation is not a one-time event, but rather an ongoing process. By continually reviewing and improving financial systems and processes, businesses can ensure they remain competitive and well-positioned for the future.


Overall, finance transformation is an essential part of modern business operations. By improving financial systems, processes, and capabilities, businesses can gain a competitive edge, drive efficiency, and make better-informed decisions.

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Analytics, Business, Finance

Data-driven business insights vs. Standard financial reports

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January 21, 2022

- Analytics, Business, Finance

“I am tired of getting pages and pages of reports from my Finance team,” commented this CEO of a large organization to me. “All I need to know is how my business is doing, and what changes I need to make to improve performance. Is it too much to expect,” he asked?

Finance teams love to work with and present lots of data.

Business owners and decision-makers on the other hand care about the data but are more interested in outcomes and understanding drivers of those outcomes.

Herein lies the expectation gap.

Their head of finance used to present results to the executive team, walking through a 30-page reporting package full of tables and graphs.

How did the executive team respond? Yawns. Lots of yawns, in fact.

The CEO brought in Ansid to change this.

The 30-page package was replaced by a crisp one-page summary of: why the performance was as it were, identifying the underlying drivers of revenues and costs, and a recommendation on what needed to change to deliver profitable growth.

The monthly meetings thereafter changed to a data-driven discussion to develop and implement clear strategies and actions.

Are you getting real insights and answers to your business questions from your Finance team?
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Advisors, Business

Whitepaper: Delivering strategic value with the help of boards of directors and advisors.

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April 17, 2021

- Advisors, Business

The need for independent or “outside” board members in a public corporation is well understood; its importance for small to mid-size, privately held business, not as much.

In this whitepaper, we make the case that a well-curated board of directors and/or board of advisors can be as important and useful to profitably growing a small to mid-size business.

In fact, a #BDC study suggests that independent boards could help increase revenue growth by 3X and productivity by 18%.

The paper also covers key actionable insights on how founders and CEOs of a small to mid-size business can leverage expertise of independent board members and how to go about setting up their boards.

Click here to download the full whitepaper.

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Cash Flow, Finance

Relationships with lenders and investors are key. Don’t leave it to when you need it.

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April 17, 2021

- Cash Flow, Finance

Good relationships with lenders and investors are crucial whether your business is struggling or flourishing. These stakeholders are often lifelines for your company and they can mean the difference between growth and decline.

The relationships you have built with your lenders and investors will always be looked toward in order to assess potential further interactions, loans, and investments.

When your company is on the up, these parties will reap the benefits and will be happy to continue investing in your business. 

But, as with most things, communication is key.

Keeping your lenders and investors up to date no matter the state of business shows proactive leadership and respect. If you only communicate when you need something, it can reflect negatively on your business and they may decide to pull out their investment.

Another thing that can really impact this relationship is establishing something mutually beneficial.

Lenders and investors have their own desired outcomes and being able to recognize and contribute towards these outcomes while still holding true to your own is crucial.

Securing capital is just one step. You also need to make sure you secure a consistent relationship with the very parties who provide you with the help you need when you need it.

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Advisors, Strategy

Got an advisor? Listen to their advice.

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June 24, 2020

- Advisors, Strategy

👉 What good is an advisor if you don’t listen to their advice?

 

Advisors are experts that an entrepreneur can use as sounding boards or to fill gaps in expertise and contacts.

 

They bring new perspectives on business that are easy to be overlooked by the entrepreneur, sometimes due to internal bias.

 

Seven months before COVID-19 pandemic, I advised a CEO not to renew their office lease.

 

A fancy office in downtown TO was nice but wasn’t necessary for their business. Clients hardly came to visit, the team was technically savvy and could operate remotely, and on top of that the office was much larger than their headcount warranted.

 

The CEO went ahead with renewing the multi-year lease because (a) “the office exudes our company image” and (b) “the team cannot work remotely”.

 

The pandemic proved both beliefs were misplaced.

 

They are now looking for ways to get out of the lease.

 

According to a BDC study, only 6% of Canadian entrepreneurs have an advisory board for their business. However, 86% of entrepreneurs who have an advisory board say it’s had a significant impact on their business.

 

If you are an entrepreneur, consider having a formal advisory board or informal external advisors.

 

And more importantly, listen to their advice.

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Business, Cash Flow, Thrive30

Adapt and thrive during and after the pandemic.

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June 17, 2020

- Business, Cash Flow, Thrive30

🚀Don’t just survive, but thrive. 🚀


Most entrepreneurs understand how vital cash flow is to the smooth running of their business.

Many still face cash flow challenges; some can be expected, yet others such as COVID-19 pandemic cannot be foreseen.

This CEO reached out to me a few weeks ago.

Her business had been successful for many years but as the pandemic hit, customers began delaying payment of invoices and the deal pipeline started drying up.

With only a few months of cash runway, she was in a difficult spot.

But there are always opportunities in challenges.

My advice to her was to respond quickly and decisively as follows:

➡ Tap into government incentives to ease up the immediate cash crunch;
➡ Build cash flow scenarios identifying variables that affected revenues and costs;
➡ Renegotiate payment terms with customers and suppliers;
➡ Re-imagine the business model to identify new revenue opportunities; and
➡ Perform a line-by-line review of costs to optimize based on the new business model.

Businesses that navigate disruptions better not only survive but thrive during and after adversity.

What changes have you made to your business during the pandemic?

Check out our Thrive30 program to help you navigate these challenging times.
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Cash Flow, Finance, Thrive30

Is your Finance team ready?

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June 10, 2020

- Cash Flow, Finance, Thrive30

“I need to make quick decisions but can’t seem to get straight answers and insights from my Controller.”

Commented a very frustrated COO of a food industry supplier recently.

COVID-19 significantly disrupted their business.

He turned to his Controller for information to make decisions and was very disappointed!

The Finance team was unable to provide accurate, even credible, cash flow analyses and forecasts.

When the COO finally prepared it himself, they discovered that their runway before running out of cash was very short.

Instead of being able to calmly and logically review options and make informed decisions, they had to go straight into panic crisis management mode.

Unfortunately, this is a common occurrence.

Finance teams get mired with compliance work and are not geared to provide timely insights to help management make strategic and tactical decisions.

The pandemic identified a serious gap in the Finance team for this food industry supplier.

How timely and credible insights do you get from your Finance team?

Let me know in the comments.
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Business, Cash Flow, COVID-19, Finance

Reduce staff during COVID-19?

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June 3, 2020

- Business, Cash Flow, COVID-19, Finance

🤔Let people go during COVID-19? Or NOT?

Business leaders have lately grappled with this question a lot; many still are.

Their hearts and minds are conflicted.

They care about their staff and don’t want to let them go..

But, if they don’t, the business may not survive.

Here’s are five steps I suggest:
  1. Take advantage of as many government incentives as possible to improve cash flow and reduce business impact;
  2. Review core assumptions of your business strategy. Is it viable during and post-COVID-19?
  3. Pivot if necessary, and do so quickly;
  4. Identify staff that do not align with the business moving forward;
  5. Say goodbye to staff to a level that sustains business and not for the sake of just making more money.

If you’re a leader in a business impacted by COVID-19, what would you do?

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