The CFO'S Perspective

CFO Selections Team

Recent Posts by CFO Selections Team:

The Ultimate Guide to Better Cash Flow Forecasting for Business Services

There is a misconception that business services companies do not need to prioritize cash flow management in the same way that retail businesses do because they do not have the same kind of inventory demands. However, cash flow planning is just as important for service providers as it is for retailers because cash is the lifeblood of both!

Topics: Cash Flow Forecasting Service Providers

Do Service Providers Need Office Space Anymore?

People are asking, “How much office space do service providers need these days?” But perhaps it is more appropriate to ask, do service providers really need office space at all anymore?

Since the shift to remote work, it seems everything from making introductions and generating quotes to signing contracts and conducting client meetings can be done virtually now. With that in mind, many services companies are left wondering if they even need their office space these days. As a result, they are leaning on their CFOs (Chief Financial Officers) to do the cost analysis required to determine if they should keep their existing office space, downgrade to a smaller space, or forgo having a centralized office entirely. Where service providers do retain their office space, a CFO’s job is not done. In these cases, service companies are relying on their CFOs to re-negotiate office leases and make leasehold improvements to help improve their cost efficiency in today’s tight economy.

To keep the office or not keep the office – that is the question. What should your business do?

Topics: Service Providers

How Creating Connection is Helping Service Providers Improve Revenue

Creating authentic connections with customers can help companies to attract new customers, retain existing customers, and develop brand advocates to increase customer lifetime value across the organization. It can also benefit employees, strengthening the company from within. Having a meaningful connection with the people they are serving allows employees to find meaning in the work that they do, simultaneously increasing employee retention and making it easier to attract top talent for new roles. The net effect of these internal and external shifts is greater, more sustainable revenue.

Topics: Growth Strategy Service Providers

The Biggest Financial Shifts of 2023

As companies continue to battle unexpectedly high inflation and economic uncertainty, understanding this year’s prevailing trends across financial forecasting, fintech stacks, procurement, and customer attribution can help them to increase revenue and market share. Our ongoing research and conversations with other c-suite professionals in the industry have revealed several key shifts in these areas that can affect not only how a CFO does their job but also how their organizations develop and execute on strategic plans.

Topics: CFO Responsibilities Change Management Strategy Supply Chain Technology

Combating Inflation in the Tech Industry

With the US inflation rate still over 6% it continues to dominate business news headlines. And after a recent press release in which the Fed announced they were raising their longstanding inflation rate target from 2% to a range of 4.5-4.75% speculation continues to ensue over what may be coming next. US monetary policy is likely poised to shape these inflationary trends, but the timing and success of such efforts are yet to be determined.

What we do know is that the effects of inflation are being widely felt – both by consumers and by businesses. And while high inflation has affected every industry to some degree, data shows that it is taking a disproportionately heavy toll on the tech sector. Public and private tech companies alike are bearing the burden of soaring inflation that does not show any signs of slowing in the near future.

So, what can the technology industry do to strategically combat high inflation? The following 7 actions are essential for tech companies to weather high inflation:

Topics: Technology

How Nonprofits are Using Technology to Grow in a New Age

As in any industry these days, technology utilization in nonprofit organizations is on the rise. Nonprofits are using technology to shape everything from how they communicate to how they fulfill their missions with greater efficiency and effectiveness than ever before.

In a Harvard Business Review article on the smart tech transformation occurring in nonprofits, Allison Fine and Beth Kanter summarize,

“The use of smart tech by social service agencies and other nonprofits exploded during the pandemic. For example, food banks deployed robots to pack meals; homeless services agencies used chatbots to give legal and mental health advice; and fundraising departments turned to AI-powered software to identify potential donors. At many nonprofits, smart tech is becoming integrated into internal workflows, fundraising, communications, finance operations, and service delivery efforts, freeing up staff to focus on deeper societal changes that need to be made — such as addressing the root causes of homelessness in addition to serving homeless people. While smart tech helped scores of nonprofits to pivot to suddenly remote and digital delivery of programs and services at the start of the pandemic, it may also enable them to turn the page on an era of frantic busyness and scarcity mindsets to one in which nonprofit organizations have the time to think and plan — and even dream.”

Topics: Non Profit Organizations Trends Technology

Calculating Nonprofit ROI

It is not difficult to understand that a nonprofit organization needs money to accomplish its mission. And yet, in looking at nonprofits it is clear that they are so much more than the money they have to invest in programs and initiatives around a particular mission or cause. Nonprofits are made up of passionate people that care about making a difference and serving others with whatever resources they have available. But how much they need and how much donors are willing to give them hinges on understanding how they can use what they have to do what they do, which is called their Return on Investment (ROI).

Without knowing what kind of a return a nonprofit can achieve it cannot secure grants or attract donors effectively. So, how do you calculate nonprofit ROI?

Topics: Finance Non Profit Organizations Analysis

How Will a Recession affect Nonprofits?

While some economists and business analysts claim we are already in a recession, many more believe we will be in one by the end of the year. The general consensus is that whether we are already there, or it is coming soon, for-profit and non-profit organizations alike will be affected. The question is how will they be affected and what will those effects look like? Essentially, what should they expect and to what degree should they expect to be affected?

Obviously, nonprofit organizations will feel the effects of a recession differently than the private sector, but the types of issues they are dealing with right now are the same: changing consumer behavior (purchasing and donating), increased costs, labor market changes, and increased reputational risk. How will nonprofits be affected?

Topics: Non Profit Organizations Economic Trends Philanthropy Planning