Hiring a Chief Financial Officer (CFO) is a crucial step for the financial health and strategic growth of your business. In the first 90 days, a CFO can make a significant impact by implementing key strategies and setting the financial foundation for success. Here’s a comprehensive checklist to make sure your CFO covers all important areas of your business through the initial months.
Understanding the Business Landscape
☑️ CFO should establish the roles, responsibilities and relationships within the business.
☑️ Conducting a thorough review of the current business operations, financial statements, and industry trends.
☑️ Engaging with key stakeholders to grasp the company’s goals and challenges.
Related: How to find a Virtual CFO that suits Your Business?
Assessing Existing Financial Systems and Processes
☑️ CFO should evaluate existing accounting systems and financial processes.
☑️ Identify areas for improvement and implement necessary changes for efficiency.
Digging into Company Financials
☑️ CFOs will usually divide their analysis into three categories, being:
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- Budgets
- Actuals
- Forecast
☑️ Developing a robust cash flow forecasting model to ensure liquidity.
☑️ Implementing measures to optimise working capital and reduce unnecessary expenses.
Risk Assessment and Mitigation
☑️ Identifying potential financial risks and develop strategies to mitigate them.
☑️ Establishing risk management protocols to safeguard the company’s financial well-being.
Cost Analysis and Reduction
☑️ Analysing cost structures to identify opportunities for cost reduction.
☑️ Implementing cost-saving measures without compromising quality or productivity.
Strategic Planning
☑️ Collaborating with the leadership team to align financial goals with overall business strategy.
☑️ Developing key performance indicators (KPIs) to track and measure financial success.
Related: Five ways to Grow Your Business with a Virtual CFO
Enhancing Financial Reporting
☑️ Streamline financial reporting processes for clarity and transparency.
☑️ Ensuring timely and accurate financial reporting to support informed decision-making.
Tax Compliance and Optimisation
☑️ Reviewing current tax strategies and identify opportunities for optimisation.
☑️ Ensuring compliance with tax regulations and explore incentives for potential savings.
Developing a Financial Roadmap with Goals
☑️ Putting together a roadmap for financial success, which will essentially act as CFOs / business owner’s plan for the coming year or so.
Team Collaboration and Development
☑️ Building strong relationships with the finance team and other departments.
☑️ Assessing the skillset within the finance team and implement training or hiring as needed.
Technology Integration
☑️ Exploring and implementing financial technologies to streamline processes.
☑️ Leveraging data analytics for better insights and decision support.
Making First 90 Days Count
To be an effective CFO in today’s environment, CFOs need to work efficiently, effectively, and accurately. The CFOs contribution extends beyond assembling financial statements and forecasts. It lies in their strategic acumen, decision-making prowess, and the valuable financial guidance they provide.
The first 90 days of a CFO’s tenure are critical for laying the groundwork for financial success. By understanding the business, optimising processes, and aligning financial strategies with overall goals, a CFO can set the stage for long-term growth and stability.
This checklist serves as a guide for CFOs and business leaders alike, ensuring a focused and effective start to their partnership.
Related: What value can a CFO bring to my Business
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Whether your business is gearing up for a short-term capital raise or long-term growth, our Virtual CFO tailors strategies, advice, and planning to your unique financial needs. To learn more about our CFO services, get in touch with our team.
