CFOs: Read This Now

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Today’s Read

Overview

Marina Zosya’s CFO Techniques isn’t your typical dry finance manual. It’s a hands-on guide for CFOs, especially those working in small to mid-sized businesses.

Unlike CFOs in massive corporations who might focus only on high-level strategy, CFOs in smaller companies do it all. They handle budgets, risk, compliance, cash flow, and even hiring. This book is about how to juggle these responsibilities without dropping the ball. Get the book here.

The Role of a CFO – More Than Just Numbers

A CFO isn’t just the “money person.” Zosya argues that a CFO is a business strategist who:

• Shapes company strategy – Not just reacting to numbers but driving decisions.

• Manages risk – Spotting trouble before it sinks the company.

• Keeps the business solvent – Cash flow is king. A profitable business can still go bankrupt if cash runs out.

• Builds relationships – With investors, banks, vendors, and employees.

It’s not just about knowing finance. It’s about understanding how a business works.

The "Eight Balls You Cannot Drop"

Zosya lays out eight critical areas that CFOs must master:

1. Internal Controls – Clear policies prevent fraud and mistakes. (Example: A simple two-person approval system for expenses can stop theft.)

2. Budgeting – A budget isn’t just numbers on a spreadsheet. It’s a control system to ensure money is spent wisely.

3. Treasury Management – Cash flow projections, managing payables and receivables, and keeping a daily eye on cash.

4. Financial Reporting – Understanding what financial statements really mean (not just producing them).

5. Performance Metrics – Don’t drown in generic KPIs. Find the right ones. (Example: A telemarketing company might track “cost per seat” rather than total revenue.)

6. Risk Management – Identifying what could go wrong and having backup plans.

7. Tax Compliance – Mistakes here can kill a business. Staying ahead of deadlines is crucial.

8. Investor & Lender Relations – Whether raising money or just keeping good terms with banks, relationships matter.

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Budgeting: More Than Just Guesswork

Zosya makes a key point: Budgets aren’t just for tracking spending. They shape behavior.

Think of it like this: If a company sets a strict budget for advertising, the marketing team will be forced to prioritize what actually works instead of spreading money across everything.

She also warns against rigid budgeting. The real world is unpredictable. A good CFO adjusts based on reality, not just last year’s numbers.

The Power of KPIs (Key Performance Indicators)

Not all KPIs are useful. Zosya is critical of businesses that track too many meaningless numbers.

Imagine you run a restaurant. Which KPI is more useful?

1. Total revenue per month

2. Revenue per table per hour

At first glance, total revenue per month seems like a solid metric. After all, you want to know how much money the business is bringing in. But there’s a problem—it doesn’t tell you why revenue is high or low.

Now, let’s look at revenue per table per hour. This KPI reveals how efficiently your restaurant is operating.

• If revenue per table is low, it could mean that customers are staying too long without ordering more, or that your waitstaff is slow in turning tables.

• If revenue per table is high, it suggests you’re maximizing table usage, serving more customers, or upselling effectively.

This KPI helps answer real business questions:

• Do we need to speed up service?

• Should we redesign our menu to encourage more profitable orders?

• Are peak hours being fully optimized?

A good KPI doesn’t just describe what’s happening—it helps you make decisions. That’s the key takeaway from Zosya’s approach. Find the numbers that actually steer the business forward, not just the ones that look impressive on paper.

Treasury Management

A profitable company can go bankrupt if it runs out of cash.

Zosya gives practical advice on keeping a close eye on cash flow:

• Daily cash reports – A quick snapshot of money coming in and going out.

• Accounts receivable discipline – Follow up on unpaid invoices before they become a problem.

• Smart debt management – Borrowing isn’t bad—bad borrowing is. Know the difference.

Risk Management

Every business faces risks. The best CFOs anticipate them.

• Insurable Risks – Property damage, lawsuits, employee accidents. Solution? Insurance.

• Operational Risks – Supply chain failures, equipment breakdowns. Solution? Backups and contingencies.

• Financial Risks – Market downturns, interest rate hikes. Solution? Diversification and planning.

Example: If you’re a CFO for a company that relies on a single supplier, you should have a backup supplier ready before you ever need one.

The CFO as a Leader

A CFO doesn’t just manage money. They manage people.

• Hiring – The right finance team makes your job easier.

• Culture – A CFO who communicates well can create a finance-friendly company culture.

• Behavioral Insights – Understanding how people think about money helps influence better decisions.

Zosya argues that finance isn’t just about numbers—it’s about persuasion. Convincing executives, employees, and investors to make smart financial choices is a key part of the job.

Final Takeaways – What Makes a Great CFO?

1. They see the big picture. Numbers tell a story. A great CFO understands what they mean for the business.

2. They anticipate problems. Instead of reacting, they prevent financial disasters before they happen.

3. They communicate well. If you can’t explain financial concepts to non-financial people, you’ll struggle.

4. They focus on the right metrics. Not all KPIs are useful. Pick the ones that matter.

5. They manage cash like their life depends on it. Because for a business, it does.

Happy reading and remember to TAKE ACTION! There’s more to learn in the next one! Same day, same time! See ya.

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