The Finance Gem 💎 Week #75: CEO vs CFO

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THIS WEEK’S ISSUE AT A GLANCE

1. This issue’s Finance Gems 💎 vote your favorite at the end of the newsletter.

• CEO vs. CFO

• 20 CEO Mistakes

• 100 Questions for the CFO

• CFO vs. Accountant vs. Bookkeeper

2. Join me and Ranga Bodla on September 3rd for an insightful free webinar in partnership with Oracle Netsuite: CEO vs. CFO. We’ll talk about how these two critical roles shape strategy and we’ll go from number crunching to storytelling to see how they are evolving. Sign up here.

3. In case you missed the Linkedin Announcement, I have just relocated to the US. If I can help you or your organization, please reach out to connect!

THIS WEEK’S FINANCE GEMS

1. CEO vs. CFO

Strategy needs to understand financial implications

Finance needs to communicate strategically

And together they need to create value

And grow the business.

Here’s what is included in the CEOs vs. CFOs cheat sheet.

♦️ Roles and Responsibilities

♦️ Emotional Intelligence

♦️ Exploring Overlaps

♦️ Skillsets for Leadership

♦️ Performance KPIs

♦️ Strategic Questions for CEOs

♦️ Strategic Questions for CFOs

♦️ Storytelling for CFOs

♦️ Number Crunching for CEOs

♦️ What They Wish of Each Other

♦️ Path from CFO to CEO

Download a full resolution copy here, courtesy of Oracle Netsuite.

And don’t miss our free webinar on Sept 3 to learn more about these topics!

2. 20 CEO Mistakes

I’ve helped many companies scale and I’ve negotiated, structured, underwritten and managed hundreds of millions in deals.

Want to know why some companies make it big and others fall short of their potential?

The answer is actually really simple.

It’s because successful company CEOs are humble and knowledgeable enough to enlist specialized expertise.

And that helps them anticipate mistakes and avoid many of the blind spots.

You don’t know what you don’t know.

However, there is one critical blind spot that’s notoriously hard for many CEOs to avoid.

Would you like to guess what that is?

Strategic Financial Acumen.

The ability to understand the financial impact of their decisions, allocate capital strategically and communicate effectively with stakeholders.

Join us on September 3 as we delve deeper into this topic during our Oracle Netsuite webinar. Register here.

Here's a breakdown of 20 common pitfalls CEOs encounter, why these can be major value destroyers in an organization, and how CEOs can avoid them:

1. Ignoring Cash Flow: Implement a weekly cash flow forecasting system to prevent insolvency.

2. Lack of Strategic Vision: Develop and regularly review a 3-5 year strategic plan to avoid missing opportunities.

3. Poor Leadership: Invest in leadership training and establish a feedback culture to reduce turnover and enhance productivity.

4. Ignoring Market Trends: Regularly adapt the business model based on market research to prevent becoming obsolete.

5. Overexpansion: Back expansions with solid financials and infrastructure to avoid straining resources.

6. Ignoring Customer Feedback: Use a structured feedback system to align products with market needs.

7. Poor Financial Management: Collaborate with the CFO for financial discipline and transparency to maintain investor confidence.

8. Lack of Innovation: Allocate funds for R&D to keep the company competitive and innovative.

9. Ignoring Competition: Conduct competitor analysis and adjust strategies to protect market share.

10. Poor Communication: Hold regular all-hands meetings for clear organizational messaging and alignment.

11. Neglecting Employee Morale: Foster employee engagement and recognition to boost productivity and reduce turnover.

12. Failure to Adapt: Promote a culture of agility and readiness to pivot in response to market changes.

13. Micromanaging: Empower teams by delegating responsibilities and enhancing decision-making.

14. Lack of Risk Management: Implement and review a robust risk management framework to avoid financial and operational disasters.

15. Ignoring Company Culture: Cultivate a strong, positive culture aligned with the company’s vision to increase employee satisfaction.

16. Poor Decision-Making: Base decisions on data and expert consultations to avoid costly errors.

17. Failure to Delegate: Delegate tasks strategically to prevent burnout and boost efficiency.

18. Ignoring Legal Compliance: Regularly audit and review to ensure compliance and avoid legal issues.

19. Overreliance on Key Personnel: Develop succession plans and cross-train to mitigate risks associated with personnel changes.

20. Neglecting Business Continuity Planning: Regularly update business continuity plans to safeguard against operational disruptions.

3. 100 Questions for the CFO

CFOs need to answer a multitude of questions demanded by the business stakeholders.

» Investors want transparency and sustainable value creation.

» CEOs want strong growth, maximized profits and enviable cultures.

» Customers demand competitive pricing, value, reliability and ethics.

» The leadership team needs accurate budgets and efficient operations.

Many of these are conflicting and challenging to achieve.

So here are 100 critical questions to help CFOs bridge the gap.

Click here to download a complimentary full resolution copy.

Join us for a discussion with Oana Labes, president of Financiario, on her learnings from successful partnerships between the CEO and CFO. We'll cover:

• How the CEO/CFO partnership shapes strategy.

• Why KPI alignment is not enough to drive effective financial and business strategy.

• The need for a skill overlap to strategically align the two roles.

• Maximizing enterprise value through strategic financial planning.

WORK WITH ME

If your finance team is struggling to produce the automated, self-updating monthly reports, rolling forecasts and intelligent business insights you need to grow the business, Financiario can help.

Transform your organization with our done-for-you intelligent forecasts and BI dashboards, dynamic financial reports, flexible scenarios, and best-in-class presentations. Multi-currency, multi-entity, multi-platform.

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4. CFO vs. Accountant vs. Bookkeeper

A CFO is not an Accountant.

But to effectively drive financial strategy and policy, they need Accounting.

An Accountant is not a Bookkeeper.

But to ensure the accuracy and compliance of financial reports they need Bookkeeping.

Here’s what you need to remember about these 3 roles and their place in the finance organization:

🎯 CFO:

➡️ Requires strategic knowledge of accounting to shape financial and strategy and policy.

➡️ Oversees financial reporting & compliance, risk management, and investment decisions.

➡️ Directs the financial future of the company and advises on strategic business initiatives.

🎯 Accountant:

➡️ Requires professional grade knowledge of accounting to manage financial reporting.

➡️ Ensures accuracy, timeliness, relevance and compliance of financial reports with accounting standards and tax laws.

➡️ Provides budgetary input and financial analysis.

🎯 Bookkeeper:

➡️ Requires basic understanding of accounting to ensure accurate recording of financial transactions.

➡️ Prepares preliminary financial statements and manages invoices and receipts.

➡️ Organizes financial data for review by accountants and auditors.

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POLL TIME

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