The CFO'S Perspective

Are you thinking about selling your business? Some business owners hear this question and respond, “No… well, not any time soon anyway.” But, if the answer is yes, even if you don’t plan on selling it soon, the time to start planning is now. If you think that selling your business might be in your 3-year, 5-year, or even 10-year plan, start getting the pieces in place now. Preparing ahead of time makes the process go more smoothly and quite often helps owners to get more value out of the sale of their business.

It’s never too early to plan for selling a business because there are a lot of steps that need to happen before coming to the table to sign the paperwork. Getting your financial house in order involves cleaning up your books, assessing the overall financial health of your business, putting together the information that buyers will need to enter into an agreement, working through the details of the deal, and then closing out the sale. From the early planning stage to final sale completion, the whole process can take several years to complete.

Sometimes in our professional lives we do things because we think they are a smart business move. Sometimes we act because we have no choice because the market demands it. Sometimes we take positions or actions because we are thinking about our company’s ethos and reputation in the community.

Every now and then, those things are at odds with each other. And other times, they align perfectly.

Paying attention to and acting on diversity in your business is one issue that can help you align all those facets of your business. It can help you show the world (your employees, clients, and potential customers) who you are, what you value, how the way you value people and business shows up in your work. It can also help you refine your thinking and actions to make all that public positioning real!

We’ve all heard about “phishing” – malicious emails. As Microsoft notes below, they’re hugely popular among cyber thieves. They also happen to be hugely lucrative (which is why they’re so popular!).  

While some nonprofits have been dealing with cash deficits over the last few years, others have experienced the opposite – too much cash! Granted, this “problem” is a much better one to have! However, it still poses a question that needs to be answered strategically to ensure a healthy future for the organization: “What do we do with the cash we’re sitting on?”

Of course, nonprofit leaders can choose to do nothing and just hold onto that cash until their hand is forced and they need to use it. Unfortunately, this approach poses two threats:

1. Not utilizing available cash to make strategic moves can cause an organization to miss out on key opportunities for growth, reducing its long-term effectiveness.
2. Sitting on cash gives the impression that the organization does not really need the money, which can diminish future giving from donors. Afterall, if an organization already has more than they need, why would donors keep writing the big checks?

Among a CFO’s many duties is selecting and managing the company’s key vendors. Typically, these include banks and other capital providers, investment advisors, key software vendors, insurers, benefits and retirement services brokers, HR/payroll service providers, and audit and tax experts. Other than client relationships, these are often among a company’s most important business relationships. How does a CFO look at these key business partners, and how does he decide whether and when to make a change?

According to news reports, Tesla’s CFO, Zachary Kirkhorn, has unexpectedly stepped down after 13 years with the company. This came as a shock to many because he was widely viewed as a possible successor to Elon Musk for the CEO role. He announced that he will remain on until the end of the year to help with the transition, but that the company’s Head of Accounting would replace him within the week in an interim capacity.

What happened? And could this happen to you as well? Let’s dig in to understand more.

Uncertainty, a term frequently mentioned by business leaders today, essentially refers to business risk - an area CFOs often focus on. Let's delve into the various types of risk a business may face.

Last year had been dubbed The Year of the Controller by financial recruiters because demand for the position dramatically increased amid uncertain economic times and increased accounting needs at many organizations. This year has seen continued interest in the role and there is no indication that the buzz around the Controller role is slowing down, which means that going into 2024 many companies are still inquiring about how a Controller differs from a CFO (Chief Financial Officer) and how a Controller can benefit their organization.