Lessons Learned From CFOs

CFO: We hit 4 ROAS at a 5 MER. Acquisition offer incoming? Acquirer: Those numbers mean nothing. You have zero fundamental asset value. CFO: What? Our growth is 40% year-over-year! Acquirer: And what happens when you turn off the marketing spend? CFO: We'd never do that. Our funnel is optimized to perfection. Acquirer: That's exactly my point. You're dependent on constant ad spend to survive. CFO: But we're incredibly efficient at converting traffic! Acquirer: I don't care about conversion efficiency. I care about building something that lasts. CFO: Our LTV:CAC is 3.5. That's industry-leading! Acquirer: Looks good on paper, but it ignores discounts, ad spend, and variable costs. What's your contribution margin? CFO: So what metrics actually matter for acquisition? Acquirer: Three things. First, revenue resilience - can you maintain sales when marketing stops? CFO: Our customers are loyal... Acquirer: If that were true, you wouldn't need to spend 30% of revenue to keep them coming back. CFO: Fair. What's the second thing? Acquirer: Distribution breadth. DTC-only is a strategic chokepoint. CFO: But wholesale dilutes our margins and direct relationships. Acquirer: Which brings me to the third pillar - margin structure strong enough to support multiple channels. CFO: Our gross margins are healthy. Acquirer: But not healthy enough to maintain profitability in wholesale while still investing in brand. CFO: You keep saying "brand" like it's some magic solution. Acquirer: It is. Brand is what lets you command premium pricing, enter new channels, and acquire customers organically. CFO: But how do we measure brand impact? Acquirer: Track the percentage of revenue from unpaid channels. That's your brand strength. CFO: So you're saying our perfect ROAS and MER are... Acquirer: Signs you're overly dependent on paid marketing. True asset value lives beyond ad spend. CFO: Our investors love our efficiency metrics though. Acquirer: Smart investors know sustained profits beat temporary growth. Marketing efficiency means nothing if revenue vanishes when ads stop. CFO: So we need to build resilience, distribution, and margins? Acquirer: Exactly. And a strong brand is the only way to achieve all three. CFO: I've been chasing the wrong numbers my entire career. Acquirer: Most D2Cs are. That's why they're dropping like rocks when they try to become profitable. CFO: Like Taylor Swift said - we had the numbers, but we were missing the whole story. Acquirer: And now you're ready to build something with Reputation and not just folklore.

I've been a CFO for 5 years. And I've also worked with good, average, and bad CFOs. Here's what good CFOs do (that others don't): 1. Understand the business. This is top priority. Their baseline understanding of the company will form the foundation of each decision they make. They need to fully review the company’s objectives, operations, and financial position before speaking with ALL the key people. 2. Optimize for cash first. A good CFO focuses on optimizing working capital first. Stretching payables, streamlining the collections process, identifying better ways to use credit, and making payments more efficient. Then create an updated cash flow forecast. 3. Improve financial processes. There are 2 parts to this: The first focuses on the business’s financial infrastructure. At this stage, a good CFO is going after the low-hanging fruit to improve performance, cleaning up the books, and eliminating sources of waste. The second focuses on optimization: Automated reporting, predictive study, and upgrading tech to do more with less. The goal here is to free up your team for higher-value work. 4. Cut costs. This is the quickest way to boost cash flow. With my clients, I do this by first reviewing budgets with each department leader and then implementing cost-cutting measures in order of efficiency. The goal is to reduce expenses without taking a hit to quality. 5. Build a financial plan. At this point, your new CFO has plenty of data to build a financial roadmap. I work with the executives to come up with core KPIs to track, actions to improve them, and an agreed-upon approach for balancing risk and future growth. 6. Communicate clearly. I stick to 2 rules of thumb: 1. Avoid using jargon 2. Never present just data I translate it into plain English by calling out growth opportunities, benchmarking performance against the competition, and linking present insights to future actions. By keeping everyone in the loop, even the most junior employee will be empowered to make the best decisions for your business in their day-to-day. I’ve helped over 75 SMBs grow with good finance and accounting practices. If you need help or have any questions, feel free to send me a DM.

If You’re a CFO and You’re Only Watching the Numbers… You’re Already Behind.. It’s not just about closing the books or managing cash flow. The game has changed. Here are 3 things the smartest CEOs look for in their CFOs and where you need to step up: 1- You spot value leaks others miss Forget chasing big headline cost cuts. World-class CFOs know where the small, silent leaks are: - Pricing exceptions that quietly erode margins - Slow vendor payments that kill your negotiating power - Sales incentives that drive unprofitable growth These “small” leaks add up to millions. When you quantify them, you give your CEO the real profit story not just a spreadsheet of variances. 2- You turn gut feelings into actionable numbers Great CEOs sense market shifts before the data shows up. They need a CFO who can translate those instincts into models, KPIs, and scenarios: - Can you quickly test their hunches? - Can you build custom dashboards for new bets? - Can you help them separate real trends from noise? When you do this well, you become the CEO’s most trusted strategic partner. 3- You’re a master of “what if” thinking Not the textbook scenario planning. CEOs need CFOs who can map second- and third-order effects: - What happens to tax structure if we acquire this business? - What happens to our debt position if this new product launch fails? - What happens to working capital if our largest customer walks away? Your ability to see around corners is what sets you apart. Bottom line: - Basic CFOs watch the numbers - Good CFOs explain the numbers - Great CFOs make the numbers work for tomorrow The modern CFO is the operating system of the company. This old split doesn’t work anymore: CFO = numbers COO = ops You can’t scale decision making if finance and operations live in silos. High performing CEOs today want one leader who sees it all and owns the outcome. 👉 That leader is the CFO. #cfo #finance

I thought success in finance meant mastering numbers. Turns out, that wasn't enough to get promoted to a "seat at the table". If I could go back, here are 5 early career moves I’d make: 1️⃣ Stop delivering reports. Start delivering "takeaways". Early on, I thought a perfect spreadsheet was the goal. Not so. Numbers don’t drive decisions — narratives do. If you’re not connecting the dots, you’re just crunching the numbers. 2️⃣ Build relationships outside of finance. I spent too much time in spreadsheets and not enough time in conversations. The best finance leaders build partnerships with sales, operations, and marketing because that’s where strategy happens. 3️⃣ Ask deeper questions. Instead of just delivering the report or analysis I was asked for, I countered with “What decision are we trying to make?” Strategy starts with the right questions — not just the right formula. 4️⃣ Simplify the complex. A finance leader's impact depends on how well the organization understands their work. The best finance pros translate data into clear, actionable "so what"s. 5️⃣ Think like an accelerator. Finance isn’t just about protecting the business — it’s about growing it. The best CFOs influence what happens next. ⬇️ Bottom line: Technical skills get you hired. But business impact gets you promoted…and earns you a seat at the table.

🔴 CFOs: Stop Waiting for a Seat at the Table—OWN THE ROOM. Early in my career, I made a mistake. I waited. I waited to be pulled into strategy discussions. I waited for someone to ask how finance could help. I waited to be seen as a leader. I was wrong. As a CFO, waiting for a seat at the table means you're already sidelined. Impactful CFOs don’t wait. They OWN the room and the conversation. You’re not a bystander—you’re at the center of every decision. Shape strategy, use data to drive insights, and build scalable opportunities. Here’s how I stopped keeping score and started leading: -Controlled the capital agenda: PE firms invest for growth and return, not the status quo. I owned where every dollar went—whether expanding the team, funding M&A, or investing in new tech. Every decision aligned with value creation and an exit. -Embedded finance into go-to-market: Every dollar spent on sales and marketing had to work harder. This wasn’t about cutting costs, but about scaling faster and maximizing ROI. -Took ownership of commercial strategy: Revenue growth isn’t optional. Pricing, margins, and customer lifetime value define your ability to scale and exit with maximum valuation. I shaped these, not just tracked them. -Made finance a driver of operations: I focused on optimizing working capital, headcount planning, and operational efficiency to improve cash flow. In a PE-backed company, cash is king. If you’re not driving operational efficiency, you’re leaving value on the table. A CFO who just “reports the numbers” is replaceable. A CFO who drives growth, profitability, and value creation at scale? Indispensable. What’s the hardest part about owning the room and getting a seat at the table? Let’s hear it. ♻️ Repost so others can learn from this!

🔑 25 Lessons from 25 Years in Finance 1. Cash doesn’t lie. Your P&L might. 2. The Board cares about results, not effort. 3. Great CFOs influence — they don’t just report. 4. M&A dies in integration. Plan for the aftermath. 5. Revenue is vanity. Margin is sanity. 6. In a downturn, cash is king. In crisis, it’s God. 7. Forecasting is storytelling — make it believable. 8. If Finance isn’t driving the strategy, you’re doing it wrong. 9. Headcount is the most emotional line item — and the most dangerous. 10. You’ll regret hiring too slowly. You’ll regret firing too late. 11. Excel is not a strategy. 12. Auditors are not your enemy — but they’re not your friend either. 13. Good data beats gut feeling. But clean data beats everything. 14. Don’t scale chaos. Automate first. 15. Not every founder should be a CEO. Know when to step in. 16. If your GTM team can’t explain their pipeline, your forecast is fake. 17. Your real burn isn’t what you think it is. 18. Complexity kills clarity. Simplify everything. 19. Fundraising is a full-time job. Treat it like one. 20. Due diligence is not just for VCs. It’s for survival. 21. Don’t fall in love with your model. Fall in love with reality. 22. Finance is not back office. It’s your central nervous system. 23. Every CFO is a part-time psychologist. 24. Culture eats controls for breakfast. 25. Your credibility is your compounding asset. Protect it at all costs.

HR: Employees are leaving jobs. CFO: Do we have data on why they’re leaving? HR: Yes. 70% of our turnover is tied to unmet needs like growth, recognition, and flexibility. CEO: But how much does it actually cost us when they leave? HR: Each lost employee costs 1.5x their salary to replace, not to mention the productivity gap. CEO: We need to reduce spending. We can't spend on engagement programs. CFO: What’s the impact of these engagement programs on retention? HR: Programs focused on growth and recognition have reduced turnover by 25%, saving us $3M annually. CEO: Are there other benefits to meeting employee needs? HR: Absolutely. Employees who feel valued are 30% more productive and report higher satisfaction. CFO: What about profitability? CHRO: Engaged teams generate 21% higher profitability. It’s not just about keeping them. It’s about keeping them productive and motivated. CEO: So cutting back on programs that meet employee needs could cost us more? CFO: The data shows there’s a significant financial impact. HR: Meeting employee needs isn’t just an expense. It’s an investment in retention, productivity, and profit. The lesson? Employees quit when their needs go unmet, whether it’s for growth, recognition, or flexibility. Invest in your employees.

The path to becoming the CFO of one of the world’s leading telecommunications companies has been marked by challenges, learning, and enormous personal growth. I recently had the opportunity to reflect on my experience as a leader with Jack McCullough. We covered a lot of ground, from my personal journey of immigrating to America as a child, to my role as CFO, where I helped build the most talented team in the industry, and importantly, the strategic pivot AT&T has undergone over the last 4+ years.     Some of my most valuable lessons:     ⭐ Embrace Bold Decisions: Over the last four-plus years, we’ve been on a path to refocus the business on connectivity, which included divesting non-core assets, significantly reducing our debt, and cutting the dividend. All of these choices led us to where we are today- growing earnings, growing cash, and growing shareholder returns. Bold decisions, however challenging, are essential for long-term success.  ⭐ Build a World-Class Team: Building a strong team is foundational to the success of your business. A recurring theme in my career has been the importance of surrounding myself with the most talented, most inclusive team possible. This involves maintaining great networks, being an honest broker, and providing constructive feedback.   ⭐ Stay Curious: Throughout my career, I’ve sought opportunities to learn and grow. From a fellowship with the SEC, to earning my MBA at Columbia University, continuous learning has equipped me with the skills needed to navigate the evolving landscape of the finance industry. Encouraging a culture of learning within your teams can drive innovation and success – your colleagues have a lot to teach you!    Read more in Forbes:

OnlyCFO, Secret CFO, and I were discussing how “Fractional CFO” has lost all meaning in today's market. I saw this list posted today of "things a CFO can bring to your organization" posted by someone who sells not just Fractional CFO services but sells a system to "anybody who can do a journal entry and a basic model" to become a Fractional CFO, and it screams bookkeeper to light Controller: 1. Build your accounting 2. Create your forecast 3. Manage your taxes 4. Get you insurance 5. Run your payroll 6. Handle AP / AR 7. Set up software 8. Create company-wide processes 9. Establish controls 10. Do all the reporting CEOs and Owners, please PLEASE understand what a CFO should bring to your business and why it's so important. Look at resumes, background, and ask questions about a CFO's experience in all of the areas CFOs should help with: 1. Strategic Planning & Growing/Scaling organizations 2. Capital Sourcing and Management 3. Relationships with Banks, Lawyers, Auditors/Tax, Insurance, etc 4. Cross-Functional Leadership in partnership with operations, supply chain, marketing, sales, IT, HR 5. Budgeting & Forecasting aligned with the Long-Term Plan 6. KPI Development and implementation 7. CAPEX Investment (both operating & growth) 8. M&A buy-side and sell-side 9. Succession Planning & working with wealth management professionals to streamline & minimize tax exposure 10. Value maximization and realization Get the picture? A CFO should add and grow the value of the organization overall, and low-level task work like the first list is NOT adding value. Yes, it ALL needs to be done! However, a real CFO doing AR/AP is the most expensive way to do billing, collections, and payments in history and the tradeoff is them not focusing on the things that can dramatically increase the value of a company. Nearly all low-level task work can be automated for a fraction of what a real CFO charges and a $25/hr employee covers the rest. Accrual journal entries and Controller work have fractional services of their own ranging from $35-$125/hr in SMB land. To be clear - there is a MASSIVE DIFFERENCE in skill set, value creation, and impact to the business between a CFO and a Controller/Accountant/Bookkeeper. All of those skills and work products are needed in a business, and if you don’t know the difference you’ll dramatically overpay the latter masquerading as the former to do lower-level basic work. #CFO #FractionalCFO Andrew Lynch Florida CFO Group