The Ledger

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Tag Archives: strategic finance

CFO Dive: IMA CFO Says Scenario Planning is Constant ‘Balancing Act’

“Yet it is also important for CFOs to avoid inflation tunnel vision —“time-traveling” CFOs also have the advantage of being able to think about “what’s going on six months, a year, two years and five or 10 years into the future,” Porter said.”

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CFO Magazine: 6 Stakeholders Who Support the CFO to Take ESG Beyond Compliance

“With all these stakeholders taking such a keen interest in ESG, there is a strong case for CFOs to take a strategic view of ESG compliance and reporting, whether it is compulsory or not. The forward-looking CFO doesn’t think ESG is just another compliance burden. They realize that finance is looking at an opportunity to gain and secure business while accruing other benefits and savings that go way beyond regulatory success.”

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SF Magazine: The Case for BPM

“For a single-source system to function and report timely and accurately, data structures between individual autonomous product lines and business segments must agree. This often requires the people in control of these segments to conform their thinking and find commonality toward the shared enterprise goals. Real-time financial reporting—flexible, manipulable, and drillable to any level—is entirely contingent on the commonality of the financial hierarchies that support it.”

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SF Magazine: CFO to CFO: Staying the Strategic Course in Crisis

“Data analytics is critical to understanding the business at any point in time and very helpful in terms of being able to develop your pandemic response, stay ahead of trends, understand what your short-term forecast should be, and develop the longer-term forecasts.”

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CFO Journal: Improve Working Capital Without Renegotiating Terms

“Working capital process challenges can range from ineffective communications between sales systems and ERPs to inadequate technology training. For example, if the descriptions of products in a company’s sales platform do not align to the back-end billing system, manual intervention will be required to correctly reflect on the invoice what was sold on the purchase order, introducing both delays and the possibility of errors. Meanwhile, ineffective tech training for employees using systems that feed data into reports and dashboards can lead some employees to create workarounds and manual processes that introduce inefficiencies, errors, and—ultimately—inaccurate metrics.”

Read More at The Wall Street Journal >

CFO Insights: How CFOs Can Rise to Meet the Challenge of Soaring Inflation

“According to one Deloitte analysis, the rewards of price increases often outweigh the risks. The analysis found that if a company with 35% gross margins raises prices by 5%, the company’s sales volume would need to fall by more than 12.5% for the price hike to impact contribution margin negatively. Of course, some competitors will likely hold the line on price increases to gain market share.”

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FP&A Trends: Skills of the Future: How to Build Best-in-Class FP&A Teams

The Architect: is responsible for building the bridges between raw data, key business drivers, and driver-based models into actionable insights that help make business decisions.”

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CFO Journal: 3 Dynamic Finance Scenarios for CFOs

“The principles of Dynamic Finance can help finance transform from business function to dynamic capability—while still performing its steward and operator duties—for adapting to external forces with speed, strength, stability, and flexibility.”

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CFO Magazine: 6 Areas CFOs Should Support to Build Business Resilience

“To make informed decisions related to inventory, business expenses, hiring, capital investments, and other areas, management needs clear insight into financial performance. Even if your reporting is timely and accurate, are you providing the right insights and analysis to run the business? For example, if you’ve recently expanded globally, are you providing analysis by country or region? Or are you still setting budgets and presenting results as a total group?”

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