The New Requirements of the CFO
Here at 60 Minute CFO you know we love to bridge the gap between CEO, Business Owner, banker, CPA and CFO. Usually it’s the CEO/business owner who is the most motivated to bridge the gap, but we are seeing more and more that CFOs, bankers and CPAs are being coached to go the extra mile.
This article from Netsuite outlines key practices for CFOs that we love seeing. Specifically:
“In short: CFOs must have solid, dependable data at their disposal. Highly effective CFOs make data and analytics a priority for themselves and their teams. They also prioritize new skill sets, like data science and designing analysis procedures, to enhance traditional accounting roles.”
If “data and data analytics” has you wondering which data and analytics, simply refer to our 12 key ratios that we think all business owners should monitor:
Current ratio (liquidity)
Debt-to-Equity ratio (safety)
Gross profit margin
Operating profit margin
Net profit margin
Revenue per admin employee
Return on Equity
Receivable Days
Survival Score
Operating cash flow
Financing cash flow
Net cash flow
Definitions for all of these can be found in our online glossary.