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7 Key Finance Processes for CFOs Many people ask what they should learn to become a CFO. What is also interesting is the role of the CFO and with which finance department do they interact. As a CFO, it's essential to have a good understanding of the key finance processes that drive your business. Here are 7 finance processes that every CFO should master and what is their role. 1. Financial Planning and Analysis (FP&A): Main objectives: Forecasting and analyzing financial data to support business decisions. Key Owner: FP&A Team CFO's Role: Align financial insights with business strategies for informed decisions. 2.Budgeting and Forecasting: Main objectives: Creating and managing budgets and financial projections. Key Owner: Budgeting Team CFO's Role: Lead budget creation, ensuring strategic alignment and proactive adjustments. 3.Accounts Payable (AP): Main objective: Managing and paying vendor invoices. Key Owner: Accounting Department CFO's Role: Gives the direction in payment terms to optimize cash flows. 4. Accounts Receivable (AR): Main objectives: Managing and collecting customer payments. Key Owner: Accounting Department CFO's Role: Gives direction on payment terms and takes ultimate action on bad debts. 5. Cash Management: Main objectives: Managing cash flow to ensure that the business has enough cash on hand to meet its financial obligations. Key Owner: Treasury Department CFO's Role: Optimize cash reserves, ensure liquidity for operations. 6. Financial Reporting: Main objectives: Preparing and presenting financial information to stakeholders. Key Owner: Financial Reporting Team CFO's Role: Uphold transparent financial communication and compliance. 7. Audit and Compliance: Main objectives: Ensuring that the business is in compliance with legal and regulatory requirements and that financial statements are accurate and reliable. Key Owner: Internal Audit and Compliance Teams CFO's Role: Ultimate responsible for financial compliance & internal controls against fraud. 👉 Did I miss anything?

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Finance Career Paths 1. Accounting 🎓 Education: -Bachelor's degree in Accounting, Finance, or related field -Certifications: CPA, CMA 🧑💻 Junior role -Financial statement preparation -Basic bookkeeping tasks -Form preparation assistance 🧑🏫 Senior Job - Senior Accountant: -Review junior accountants' work -Ensure accounting standards compliance -Advanced accounting tasks 👔 Management Position - Accounting Manager: -Supervise accounting department -Develop accounting policies -Manage financial internal controls 2. Financial Planning & Analysis (FP&A) 🎓 Education -Bachelor's degree in Finance, Economics, Business Administration -Certifications: FPAC or Online Courses (check my course on my LinkedIn profile) 🧑💻 Junior Job - Junior FP&A Analyst: -Analyze financial data -Create financial models -Prepare financial performance reports 🧑🏫 Senior Job - Senior FP&A Analyst: -Manages a budget area -Run performance initiatives with other departments -Present financial analyses to management 👔 Management Position - Finance Manager: -Manage financial planning function -Oversee budgeting -Lead performance strategic initiative across the firm 3. Tax 🎓 Education -Bachelor's degree in Accounting, Finance, or related field -Certifications: CPA, CTA 🧑💻 Junior Job - Tax Associate: -Prepare and file tax returns -Conduct tax research -Identify tax-saving strategies 👨🏫 Senior Job - Tax Senior: -Oversee tax associates' work -Provide tax planning services -Handle complex tax issues 👔 Management Position - Tax Manager: -Supervise tax department -Develop tax policies and strategies -Collaborate on tax-related matters 👉 What is your current career path? What did I miss?

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Finance Organization Chart The best way to navigate through the organization is to understand it. Here is what a typical finance team looks like: CFO Key responsibilities Direct and oversee the financial activities of the company. Key skills • Communication • Decision-making • Management Controller Key responsibilities Directing and coordinating all accounting operational functions. Key skills • Technical Knowledge • Proficient in Financial Software • Internal Controls FP&A Key responsibilities Manages financial analysis, budgeting and forecasting activities. Key skills • Budgeting • Forecasting • Financial Analysis Treasury Team Key responsibilities Managing financial resources, ensuring liquidity, and optimizing capital structure. Key skills • Analytical Proficiency • Effective Communication • Adaptability • Strategic Thinking Accounting Team Key responsibilities Financial closing, accounts payables & receivables, reconciliation. Key skills • Knowledge of Accounting standards • Proficiency in Accounting software • Internal Controls Tax Team Key responsibilities Prepare tax provisions, returns & reports. Find solutions to complex tax issues. Key skills • Tax skills • Written communication • Compliance Business Partnering Key responsibilities Own the relationship with the operational departments. Manage & prioritize demand. Key skills • Communication • Organization • Influence Business Intelligence Key responsibilities Gather, analyze, compile & structure data. Manage BI software, dashboards & reports. Key skills • Data analytics • BI Software • Visualization • Demand management 👉 Did I miss something?

CHAIN OF THOUGHTS: Breaking down a complex problem into a simple step-by-step process and or steps CHUNKING: Complex information or problems are broken down into smaller, more manageable 'chunks' EXPLICIT REASONING: A technique where the AI details its process or reasoning in a clear, step-by-step manner AGENT PROMPTING: Framing prompts as if they are tasks or queries for an 'agent' within the AI's framework TEAM PROMPTING: Different hypothetical 'agents,' each with distinct roles, are defined and assigned specific tasks. META COGNITION: Encouraging the AI to reflect on its own thought processes, biases, and decision-making strategies SOCRATIC PROMPTING: Asking questions that lead the AI to explore a topic deeply, uncovering underlying assumptions. PROMPT OPTIMIZATION & EXPANSION: A technique where you start with a basic prompt and ask the AI to improve it based on your desired results FACT CHECKING: Using prompts to verify the accuracy and credibility of information ITERATIVE INQUIRY & SEQUENTIAL QUESTIONING: Process of asking questions to gradually refine and improve the understanding or output of a task

Accounting Standards A quick glance at the world of GAAPs This post was created after I have seen a lot of confusions about GAAP. GAAP means Generally Accepted Accounting Principles It's a common term and does not mean US GAAP. Each region has its own GAAP. Some companies even have to keep multiple ledgers depending on: - the local GAAP for audited Financial Statements - the group GAAP for the reporting package to the group - the Tax principles for the tax fillings Here is the (non-exhaustive) list of what I have collected: Disclaimer: I count on you, the worldwide finance community, to comment below if there is anything to correct. I will be happy to amend it in the comment and redo a new post in several weeks with the correction + additional GAAPs. 🌎 North America: 🇺🇸 United States: U.S. GAAP - National Standard 🇨🇦 Canada: Principes comptables canadiens - National Standard 🌎 South America: 🇧🇷 Brazil: Lei das Sociedades por Ações (LBR) - Converged with IFRS 🇦🇷 Argentina: Normas Contables Profesionales - National Standard 🌍 Europe: 🇬🇧 United Kingdom: UK GAAP - National Standard 🇩🇪 Germany: Handelsgesetzbuch (HGB) - National Standard 🇫🇷 France: Plan Comptable Général (PCG) - National Standard 🇮🇹 Italy: Principi contabili italiani - National Standard 🌏 Asia: 🇯🇵 Japan: 日本の会計基準 (Nihon no Kaikei Kijun) - National Standard 🇨🇳 China: 企业会计准则 (Qǐyè kuàijì zhǔnzé) - National Standard 🇮🇳 India: Ind AS - Converged with IFRS 🌍 Africa: 🇿🇦 South Africa: South African Standards (based on IFRS) - Adopted IFRS 🌏 Oceania: 🇦🇺 Australia: Australian Accounting Standards - Converged with IFRS 🇳🇿 New Zealand: NZ GAAP - Converged with IFRS 👉 Which one do you work with? 👉 If yours is missing, please list it below. 👉 Did I miss something?

The 3 Cash Flow Activities 1. Operating Activities 📄 Definition: The most common source of cash for a company. It involves buying and selling of inventory, receipts from debtors, payments to creditors and the payment of expenses. ➕ Cash inflows: Money received from sales Commission and Fees Money received from other incomes Royalties Subventions ➖ Cash outflows: Money paid for inventories Money paid for expenses Money paid for tax Payment to creditors Payment of wages 2. Investing Activities 📄 Definition: Cash changes as a result of buying and selling / tangible fixed assets and any changes in investments. i.e Investing in shares from other companies. ➕ Cash inflows: Money received from the sale of assets Fixed deposits maturing Sale of Investment Interest received Dividend received ➖ Cash outflows: Acquisition of CAPEX Buying properties Investing in fixed deposits Purchase of Investments 3. Financing Activities 📄 Definition: Cash changes as a result of obtaining financing and paying off loans/issuing of shares. ➕ Cash inflows: Money received from issuing shares Money received from obtaining loans ➖ Cash outflows: Money used for repaying loans Company's stock repurchase Cash dividend 👉 Did I miss any example?

1. Business Insight: A strong understanding of how the business operates, enabling smarter and more strategic financial decisions. 2. Finance Partnership: Working closely with different teams to align financial goals with overall business objectives and drive performance. 3. Financial Storytelling: Translating complex numbers and data into clear, compelling stories that non-financial stakeholders can easily understand. 4. Effective Communication: Conveying financial insights clearly and confidently to support collaboration and informed decision-making across the organization. 5. Influence and Persuasion: Using strong interpersonal skills to inspire, guide, and influence others toward achieving financial and strategic goals. 6. Analytical Thinking: Interpreting financial information to identify trends, assess risks, and support better business decisions. 7. Budgeting and Forecasting Expertise: Developing accurate financial plans and forecasts that help guide the company toward sustainable growth. 8. Cost Management: Understanding cost structures and applying the right costing methods to measure profitability and efficiency. 9. Accounting Knowledge: Applying sound accounting standards and principles to ensure accuracy, transparency, and compliance in financial reporting. 10. Tech-Savviness: Leveraging financial software and digital tools to improve efficiency, accuracy, and data-driven decision-making. Follow for more STERLING WISE

From FP&A to CFO: Your Career Roadmap Many finance professionals dream of becoming a CFO. If you’re in FP&A today, here’s how you can work your way toward that seat at the table. 1️⃣ Gain Diverse Experience There’s no shortcut: experience matters. It helps you develop skills, networks, and judgment. 👉 Rotate across FP&A, Controlling, and other finance areas. 👉 Partner with operations, shared services, and most importantly senior management on strategic projects. 2️⃣ Strengthen Your Finance Skills A CFO oversees the full finance function. You don’t need to be an expert in everything, but you must have a strong foundation. 👉 Master the three financial statements and how they connect (P&L, Balance Sheet, Cash Flow). 👉 Develop working knowledge of tax, planning, systems, and processes. 👉 Build depth in at least one area to bring a unique edge to the role. 3️⃣ Grow Your Business Acumen As you move up, the focus shifts from technical finance to business leadership. 👉 Learn your industry inside out. 👉 Understand how sales, operations, and other functions drive value. 👉 Join strategy discussions and, where possible, contract negotiations with customers and suppliers. 4️⃣ Step Into Leadership A CFO speaks for the entire company, not just finance. You’ll influence employees across functions and deal with topics far beyond the numbers. 👉 Contribute to HR, legal, ESG, technology, and strategy discussions. 👉 Start acting like a leader today be visible, be strategic, and think company-wide. 5️⃣ Build and Empower Your Team No CFO succeeds alone. You’ll need a strong team of experts to deliver on both daily operations and long-term goals. 👉 Learn to delegate effectively. 👉 Hire specialists and integrate them into a strong finance culture. 👉 Identify and develop talent early your future leadership bench will be critical 👉 If you could give one piece of advice to someone aiming for the CFO role, what would it be?