If your idea of financial leadership involves staring at spreadsheets until your eyes glaze over, we need to talk. While accurate accounting is great (and we love a fully reconciled ledger as much as the next accountant), today’s business world demands more than knowing where every penny went.
Strategic Financial Leadership – Own Your Stuff
My household of two adults, two teenagers, two preteens, and a mutant poodle dog has a mantra: “Own Your Stuff.”
Strategic financial leadership is owning your organization’s stuff. We are talking about your money, performance, goals, relationships, strategy, risks, and STUFF. Strategic financial leadership is not passively looking at financial statements from 90 days ago and managing operations via bank balance. Think of it as looking over the horizon, forecasting, budgeting, and blending operational data with financial data to track real-time progress. What if your financial function kept you attuned to the pulse of your business today, not looking at a photo album from last month to see what you did?
Here’s what modern financial leadership looks like when it’s proactive and not looking backward through a rearview mirror:
Long-term Planning
- Running “what-if” scenarios (because hope isn’t a strategy)
- Making sure your capital structure can weather future storms
- Mapping growth plans that don’t require a crystal ball
Risk Intelligence
- Proactively identify financial risks before they identify you
- Understanding key relationship impacts (admit everything is linked)
- Working capital strategies that keep cash flowing (and your stress levels low)
The Value of an Advisor
There are levels to everything. Some organizations need a full-time Chief Financial Officer (CFO). Let’s be honest, though: for many organizations, hiring a full-time CFO is like buying a Ferrari for your grocery runs. An outsourced fractional advisor is a great alternative to hiring a full-time CFO to provide financial leadership. Here’s what you get with an outsourced advisor:
Swiss Army Knife of Expertise
- Access to a broad range of experience (good and bad) across numerous organizations
- Depth of resources beyond what can be developed internally (learn from someone else’s trials and errors)
- Fresh eyes that aren’t jaded by office politics or biased by organizational history (and impervious to your version of Negative Ned)
Flexibility Without the Commitment
- Expertise when you need it
- Cost that won’t make your accountant cry (no benefits, no office space, one less meal at the company picnic)
- Proven systems ready to roll (no reinventing the wheel)
Built-in Safety Net
- A whole team of experts to leverage (because two heads are better than one, and five are better than two)
- Continuity of service that evolves with your business (no more depending on tribal knowledge)
- Real-world experience with emerging financial tools and technologies (we test the waters so you don’t have to)
Be Confident
Strategic financial leadership doesn’t just give you good numbers; it gives you CONFIDENCE to make the right decisions for your organization. Partnering with an advisor could be a key way to gain confidence in your accounting function through strategic financial leadership.
Reach out if you have questions about what strategic financial leadership could look like in your organization.
Coming Soon: When Data Tells a Story
Next month, we’ll explore how data analytics transforms financial decision-making. Don’t worry—we’ll minimize the jargon and maximize the insights .
