Parkash Ahuja

Great insights into becoming a CFO.

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Dreaming big is the easy part. The real challenge for CFOs is turning their dreams into reality amidst a sea of struggles. From making informed decisions to aligning organizational goals and implementing effective performance management, the path is fraught with hurdles. 1. **Financially Align Organizational Goals:** - CFOs ensure financial resources are optimally allocated to meet strategic objectives, making every penny count towards the bigger picture. 2. **Quantify Performance Management:** - By integrating financial metrics, CFOs bring a quantitative edge to performance evaluations, balancing qualitative insights with complex data. 3. **Drive Data-Driven Cultures:** - Beyond analytics, CFOs foster cultures where financial data speaks volumes, influencing decisions with a blend of fiscal insight and business intelligence. 4. **Incentivize with Precision:** - By tailoring incentives with financial acumen, CFOs ensure that rewards directly contribute to immediate results and long-term financial health. 5. **Champion Financial Efficiency:** - Continuous improvement isn't just operational; it's financial. CFOs spotlight cost-saving innovations and efficiency gains that boost the bottom line. 6. **Elevate Risk Management:** - With a keen eye on financial risks, CFOs transform risk management strategies, safeguarding assets and ensuring stability amidst uncertainty. 7. **Master the Art of Financial Communication:** - CFOs wield financial data to tell compelling stories, bridging gaps between numbers and strategic narratives and inspiring teams with clarity and purpose. 8. **Build Financial Resilience:** - Preparing for crises financially equips organizations to weather storms, with CFOs leading the charge in cultivating fiscal adaptability. 9. **Prioritize Financial Talent Development:** 10. **Enforce Ethical Financial Leadership:** 11. **Embrace Global Financial Strategies:** 12. **Commit to Personal Financial Acumen:** 13. **Harness Technology for Financial Innovation:** - Leveraging tech not just for operational efficiency but for financial breakthroughs, CFOs champion tools that redefine productivity. 14. **Strengthen Financial Stakeholder Engagement:** - Beyond transactions, CFOs build relationships, understanding that every stakeholder interaction is an investment in the future. 15. **Champion Financial Sustainability:** This checklist isn't just a roadmap; it's a transformation toolkit designed for CEOs and CFOs to help them navigate the complexities of modern business. Hi, I am @asheeshchatterjee, a CA, CMA (India & UK) and an alumnus of Kellogg School of Management; I love talking about building blocks for the next level of growth and excellence.

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𝙎𝙩𝙖𝙩𝙚-𝙗𝙮-𝙎𝙩𝙖𝙩𝙚 𝙏𝙖𝙭 𝘽𝙪𝙧𝙙𝙚𝙣 𝘼𝙣𝙖𝙡𝙮𝙨𝙞𝙨 The visualization provided by WalletHub and featured on the Voronoi App delves into the percentage of income that residents of each state pay towards state and local taxes. This tax burden is a composite of property taxes, income taxes, and sales & excise taxes, reflecting the diverse fiscal policies across the country: 𝑯𝒊𝒈𝒉 𝑩𝒖𝒓𝒅𝒆𝒏 𝑺𝒕𝒂𝒕𝒆𝒔: New York leads with a 12% tax burden. Close behind are states like Hawaii (11.8%) and Vermont (11.1%), where residents face significant contributions towards state and local taxes. These states often offer extensive public services funded by these higher tax rates. 𝑳𝒐𝒘 𝑩𝒖𝒓𝒅𝒆𝒏 𝑺𝒕𝒂𝒕𝒆𝒔: At the opposite end, Alaska's residents enjoy the lowest tax burden, largely due to the absence of a state income tax and the state’s unique revenue streams from oil extraction. Similarly, states like Florida and Nevada, which also do not have state income taxes, attract residents and businesses looking for lower tax liabilities. 𝑬𝒄𝒐𝒏𝒐𝒎𝒊𝒄 𝒂𝒏𝒅 𝑺𝒐𝒄𝒊𝒂𝒍 𝑰𝒎𝒑𝒍𝒊𝒄𝒂𝒕𝒊𝒐𝒏𝒔 The tax burden each state imposes has profound implications for economic behavior, residential choice, and business location decisions. States with higher tax burdens may offer more public goods and services, which can be attractive to certain populations despite higher personal costs. Conversely, low-tax states may attract more businesses and economically active individuals seeking to maximize their income retention. 𝑷𝒐𝒍𝒊𝒄𝒚 𝑪𝒐𝒏𝒔𝒊𝒅𝒆𝒓𝒂𝒕𝒊𝒐𝒏𝒔 Policymakers use such data to balance revenue generation needs against their state's economic competitiveness. Decisions on tax policies can influence state economic health, population growth, and social welfare programs. 𝑻𝒐𝒐𝒍𝒔 𝒇𝒐𝒓 𝑭𝒖𝒓𝒕𝒉𝒆𝒓 𝑬𝒙𝒑𝒍𝒐𝒓𝒂𝒕𝒊𝒐𝒏 For those interested in exploring how these tax burdens affect personal or business finances, tools like the Voronoi app provide valuable insights. Such resources are vital for understanding fiscal environments and planning accordingly, whether for personal finance, business strategy, or policy development. This deeper look into the state tax burdens not only highlights the immediate financial impacts but also sheds light on broader economic and policy implications. Understanding these can help stakeholders make informed decisions in their personal and professional lives. https://lnkd.in/ggnmSakS

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In the realm of business planning, the traditional calendar-based approach is outdated. Rooted in tax cycles and management principles from decades past, the annual budgeting ritual often feels like a relic of a bygone era. It's time to usher in a new era of agility and adaptability through the adoption of continual planning.   Picture yourself on your daily commute, encountering a sea of red tail lights ahead. At that moment, you're faced with a choice: do you stick to your intended route, resigned to sitting in traffic, or do you pivot, seeking alternative exits and side roads to reach your destination faster? This scenario mirrors the essence of business planning.   Continual planning offers a host of advantages over its annual counterpart. Instead of being bound by a rigid yearly cycle, businesses can embrace monthly or quarterly iterations, allowing for more frequent adjustments and refinements to strategies. It's akin to driving with a constantly updated GPS, enabling you to navigate unforeseen obstacles and optimize your route in real-time.   Gone are the days of exhaustive, once-a-year planning sessions. Instead, the focus shifts to agile adjustments and strategic thinking. Rather than fixating solely on year-end outcomes, businesses can build dynamic 12-month rolling forecasts—a fluid roadmap that evolves alongside shifting market dynamics and internal priorities.   Transitioning from annual budgets to toll gate planning and continual forecasting empowers businesses to cultivate resilience and responsiveness. It's about fostering a culture of adaptability, where flexibility becomes a strategic advantage in navigating the complexities of today's business landscape.   In this paradigm shift, the emphasis lies not on adhering to arbitrary calendar milestones, but on embracing and adjusting with change. By leveraging continual planning, businesses can stay ahead of the curve, driving innovation and charting a course towards sustained success in an ever-evolving marketplace.

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I’m watching Q1 SaaS results. IMO, the weakness continues to be budget scrutiny. CFOs are reprising their roles as CIOs (I = investment). 1) Spend that doesn’t meet ROI hurdle rates gets cut entirely. 2) Spend that is renewed is still subject to inspection of diminishing marginal returns: the final 20% of the order form is never as valuable as the first 80%. And software CFOs should be introspective: in the same way they inspect features on vendor order forms, they should inspect products in house. Divest or sideline products that don’t hit your hurdle rate.

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So True, R&D is linked to long-term retention and expansion of customers and should be evaluated based on how stickiness was created

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Transforming CFOs: from number-crunchers to strategic drivers. Join the conversation! Gone are the days when a CFO's role was confined to the ledger books 📚. Today, the narrative is shifting – from gatekeeper to gateway 🚪. Imagine a world where every 'No' is replaced with a 'Yes, as long as...' 💡 That's not just optimism; it's strategy. It marks a pivotal mindset change where finance is not just guarding resources but enabling business growth 🌱. But that's just the tip of the iceberg ❄️. - **From Cost Centre to Value Driver:** The modern CFO doesn't just look at numbers; they see stories 📖. Every expense, an investment 💰. Every budget cut, a strategic pivot 🔄. It's about adding value, not just cutting costs ✂️. - **From Historical Reporting to Predictive Analytics:** The rearview mirror is essential, but the windshield is larger for a reason. Today's CFOs leverage data analytics not just to report what happened but to forecast what might happen, driving proactive business decisions 🚀. - **From Siloed Function to Integrated Partner:** No longer is the finance team an island 🏝️. Integration across functions is key, with the CFO playing a crucial role in aligning the company's financial strategy with its overall vision 👓. - **From Risk Aversion to Risk Management:** Risk is no longer a monster to be avoided but a variable to be managed 🔍. This involves understanding, mitigating, and sometimes embracing risk as part of strategic growth. This evolution is not just about changing what a CFO does but reimagining what a CFO can be – a catalyst for growth, innovation, and sustainability 🌎. Hi, I am Asheesh Chatterjee a CA, CMA (India & UK) and an alumnus of Kellogg School of Management, I love talking about building blocks for the next level of growth and excellence #CEO #CFO #CHRO #leadership

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Continuing the Countdown Series with #3 Challenge CFOs are focused on in 2024: Investments for Growth Growth at ALL cost is over, but growth at some (reasonable, efficient) cost is one of the most important things that CFOs can help drive for their companies. Depending on the company, channel, or stage of growth, there are a few ways of thinking through which investments are most important to make. ⏲ Diversity in Duration: Just like in your personal portfolio, time is an important lever to consider in your company's investments. You can do this by assigning a duration to the projects & spend type you make and then look for patterns. For example, some investments should generate more immediate in-year return – spending on marketing or sales to source new customer revenue in-year or investments in the business processes that will improve efficiency immediately. On the far other side will be investments in new products or new geographies that might be many years into the future but build on the company’s vision.  Armed with the data you can have the discussion with your leaders and the board as to the appropriate allocation of spend given your priorities. For example, for more scaled companies, I have seen the allocation of 60:30:10, where 60 percent of in year spend is driving in-year growth, 30% is driving next year’s growth, and 10% should be allocated to investments more than 24 months away. Though the exact split will be dependent on industry, stage, and company strategy. 📊 But, now take those investments to drive this years revenue goals.  In theory we all know we should invest in the place with the highest ROI. In practice, determining between a varied set of potential investments how to qualify that ROI especially across departments, functions, geographies, or other sectors of investment can be a challenge.  Two things to consider with this: 1️⃣ The complexity of fully loading ROI calculations can cause precision without accuracy.  But what can’t be lost is the trendline. Establish a way of calculating this and ensure it’s calculated similarly in every period or for every new project. In this way, even if attribution of costs or outcomes can be debatable, the trend line and comparison across investments creates triangulation and validity. 2️⃣ My POV but there must be flexibility for experimentation. The best ideas your company is executing on today, were once just unproven ideas too! Imagine if no one took the risk on those?   If there isn’t flexibility now to test the best ideas people have today, then your near term and in particular your future growth would be at risk. I’ve said it before, but hire strong leaders and give them flexibility to make calculated risks with an evaluation criteria on the ROI of those investments. Otherwise you will not only lose on growth but also on talent.   - 📈 Hi, I'm Sarah, CFO at Tipalti 🔔 Connecting with other Finance leaders is a passion of mine. Follow me here: Sarah Spoja

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6 Ways to Build Momentum in Your First 60 Days as CFO. The actions you take in your first few months in as CFO have a large impact on the extent to which you succeed. https://lnkd.in/gRMDiDjp #privateequity #cfo #finance #strategy

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6 Ways to Build Momentum in Your First 60 Days as CFO. The actions you take in your first few months in as CFO have a large impact on the extent to which you succeed. https://lnkd.in/gRMDiDjp #privateequity #cfo #finance #strategy

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Continuing the Countdown Series with #7 Challenge for CFOs in 2024: Making the most of Technology Investments. This is a topic I am really passionate about as a CFO for a company that serves the Office of the CFO. But, for CFOs, it goes wider than our own tech stack to include the technology investments being made across the organization and helping to size the value and impact of these tools. Some thoughts on this. 1️⃣ What are the requirements for the next 24 months: Your tech needs are not stagnant and the tools that will support the business today may not meet the needs 2+ years from now. On the one hand, buying an enterprise grade solution as a small 10 person startup is not the right answer, but for larger companies, if you have visibility into where the business is going, predicting those requirements and building them into the decision set will save you a painful transition in the future. 2️⃣ Prioritize, Prioritize, Prioritize: There are a finite number of tools that can be implemented well in a given time period - be it in your finance organization or in other parts of your business. And mostly, it's not about the technology itself. It's the crucial step of change management and process design that allow those tools to be effectively utilized across the organization. If you don't change hearts and minds to use the new tools effectively they won't work. This is especially true if the new tools and processes will impact employees across many areas of the business versus being part of a single department's tech stack. 3️⃣ AI in your existing or new tech stack: Talking with my peers the question that comes up all the time is when will the promises of new AI functionality in our existing and new tech stack result in the outcomes of efficiencies in a more predictable way. I am loving what I am seeing in some functional areas but it's not across the board. Piloting and testing is important to drive learning and choose where to focus the companies resources. But eventually, the outcome needs to be quantifiable in lower cost, faster speed, or higher output depending on the technology. If 2023 was the year to test, then 2024 needs to be about real outcomes. Finance leaders - How are you ensuring effective allocations of resources in your technology decisions? - 📈 Hi, I'm Sarah, CFO at Tipalti 🔔 Connecting with other Finance leaders is a passion of mine.  Follow me here: Sarah Spoja

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Why Private Equity Firms Should Embrace True Value Creation... True value creation goes beyond just financial engineering. It's transforming portfolio companies from the inside out. Here's why hiring operating partners on the payroll, including them in the carry, and giving them a respected voice is crucial: Deep expertise: Operating partners bring hands-on operational experience. They know how to drive growth and efficiency from the ground up. Having them on payroll ensures their commitment and alignment with the firm’s long-term goals. Alignment with success: Including operating partners in the carry aligns their incentives with the firm’s success. When everyone has skin in the game, it fosters a collaborative environment where everyone is working towards the same goal. Respected voice: Operating partners should have a seat at the table, just like the deal team. Their insights and perspectives are invaluable for making informed, strategic decisions that drive true value creation. Value creation: It's not just about cutting costs; it's about building stronger, more resilient businesses. Operating partners help implement best practices, drive innovation, and build sustainable growth. Embrace the future: PE firms that integrate operating partners deeply into their structure will see better results, happier portfolio companies, and more significant returns. It’s time to evolve and truly embrace value creation. #privateequity #valuecreation #operatingpartners #leadership #businessgrowth #rawselection

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The Numbers Don't Lie: Why Finance Needs Healthy Conflict In finance, harmony might sound appealing, but at what cost? While a drama-free department is convenient, a fear of conflict can stifle the very thing that drives strong financial performance: critical thinking and diverse perspectives. As CFOs, we understand the importance of challenging assumptions and uncovering potential risks. But how often do we encourage this healthy debate within our own teams? Aversion to conflict in finance can lead to: Sunken costs: Undiscussed concerns about a proposed investment could lead us down the wrong path, resulting in significant financial losses. Data silos: Without open dialogue, siloed information hinders a holistic understanding of the company's financial health. Groupthink: Echo chambers of financial models can miss crucial red flags. So, how can we foster a culture of constructive conflict in finance departments? Focus on the data, not personalities: Encourage fact-based discussions, separating emotions from financial analysis. Reward diverse perspectives: Celebrate team members who bring different viewpoints to the table. Embrace open communication: Create a safe space for questions, concerns, and healthy debate. Let's move beyond the myth of perfect harmony. Healthy conflict is essential for a strong finance department. It sparks better decision-making, identifies potential issues, and ultimately, it safeguards the company's financial future. #financialleadership #conflictresolution #finance #innovation I'd love to hear from other CFOs! How do you promote healthy debate within your finance team? Share your experiences in the comments!

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Imagine a future where your CFO doesn't sleep. 🌙 In the digital era, the evolution of finance leadership is not just inevitable; it's already happening. The next frontier? AI-driven CFOs. We're standing on the cusp of a revolution that could redefine not just finance, but leadership itself. AI is transforming the landscape of decision-making, risk assessment, and financial forecasting. With its unparalleled data processing capabilities, AI can identify patterns, predict market trends, and provide insights far beyond human capability. But what makes AI an even more compelling candidate for the CFO role is its emotional neutrality. Decisions are made based on data, not gut feelings or biases. Imagine financial strategies that are optimised in real-time, fraud detection systems that are always a step ahead, and financial reporting that's not just accurate, but predictive. This is not the future; it's the now. However, the rise of AI CFOs brings a new set of challenges. The human element of leadership—the ability to inspire, motivate, and create a vision—is something AI has yet to master. The question remains: Can AI truly replace human intuition and creativity? Or will the CFO of the future be a hybrid model, where AI and human intelligence complement each other, combining the best of both worlds? The transition towards AI-driven finance leadership is not without its hurdles. Ethical considerations, transparency in AI decision-making, and the re-skilling of the finance workforce are just the tip of the iceberg. But one thing is clear: the role of the CFO is evolving, and AI will play a pivotal part in this transformation. The organisations that can navigate this change effectively will be the ones leading the charge in the digital era. Hi, I am Asheesh Chatterjee a CA, CMA (India & UK) and an alumnus of Kellogg School of Management, I love talking about building organisations for the next level of growth and excellence

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📣 Artificial Intelligence! Yes, it's here. It's confusing and scary and changing all the time. It's also hard to know how exactly it applies to what YOU do every day. As a CFO consultant and partner with the firm, Larry Breitbarth provides excellent insight into how CFO's today can embrace AI. #CFOSelections #theASPteam https://lnkd.in/dY-C4iGv

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The future of CFO leadership is changing fast. 📈 First, the role is becoming more strategic, requiring CFOs to be key decision-makers. Second, tech advancements mean CFOs must be tech-savvy to leverage data effectively. Finally, leading high-performing teams is crucial for success. Connect with me on LinkedIn for expert insights. #CFOLeadership #FinanceFuture #TechInFinance

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What can CFOs do to navigate unsteady market conditions? This article shares five key points.

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Reason for Engaging an Interim CFO: Streamlining Business for Sale Considering an ‘Exit’—be it a Private Equity sale, trade sale, or IPO—requires careful planning and execution. Often, the expertise needed for this process is not a regular requirement for a company. Hence, engaging an Interim finance hire becomes crucial. A recent case exemplifies this: A £40m turnover manufacturing business, introduced via their investor, faced a pivotal moment in its growth with a doubled order book, signaling an opportune time to explore a sale. We helped with the engagement of an Interim CFO to streamline the preparation of commercial and financial information, crucial for the sale process. This involved compiling data into a Data room, complementing the efforts of advisors in preparing the Information Memorandum (IM). #ceo #leadership #business #entrepreneur #management #strategy #innovation #startup #executive #success #finance #founder #businessowner #corporate #visionary #strategicplanning #businessmindset #leadershipdevelopment #businessgrowth #ceolife #interimcfo #interimFD

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7 Highly Effective Habits of CFOs Buying Tech 260 CFOs reveal their attitude to buying in a downturn 1. CFOs prioritizing tech stack essentials In building their own CFO Tech Stacks, CFOs prioritize business essentials first. The order of buying their CFO Tech stack from the ground up: 1️⃣ ERP - must have for 61% of CFOs (NetSuite, QuickBooks Company, Sage, Xero) 2️⃣Payroll must have for 48% of CFOs (ADP, Gusto, Rippling) 3️⃣Tax Software must have for 37% CFOs (H&R Block, Intuit TurboTax) 4️⃣AP/AR is a must have for 23% of CFOs (BILL Tipalti) 5️⃣FP&A solutions must have for 19% for CFOs (Datarails, Anaplan) 6️⃣Spend and Expense Management must have for 15% of CFOs (Airbase, Expensify, Zoho, Mesh Payments, PayEm, Ledge Spendesk) 7️⃣Business Intelligence and Visualization - must have for 15% of CFOs (Power BI, Tableau, Looker) 2. How CFOs Decide to Buy 1️⃣ Ease of use - 54% 2️⃣ Simple implementation 49% 3️⃣ Value 46% 4️⃣ Scalability 37% 5️⃣ AI 32% 6️⃣Time Saving 31% 7️⃣Customer service 28% 8️⃣Price 22% Takeaway: price is the least important factor 3. CFO Spend is up For an SMB CFO Tech stack spend hit $54,308 in 2023! Takeaway: CFOs are highly willing to buy where the value to a business and value for their business and ROI is clear 4. Increase in CFO Tech Spend by 13.7% in 2023 Takeaway: Yes CFOs are more involved in purchase decisions. But no, CFOs do not say * no* to every new spend request. Far from it. In their own realm, accurate data and forecasting efficiency has become a top priority for CFOs and CEOs. 5. Excel Still Reigns in CFO's Office Excel processes account for ⅓ of all SMB finance processes in the CFOs office keeping the lights on in US SMBs. In the CFO's Office, Excel alone accounts for: 1️⃣ 53% of Workforce planning 2️⃣ 51% of Reconciliation 3️⃣ 45% of Board Presentations 4️⃣ 42% of Month End Closes 5️⃣ 42% of sales forecasts l 6️⃣38% of management reporting 7️⃣38% of compensation and benefits Takeaway: Factor in the power of the status quo (in the finance world that means Excel). 6. CFOs rely on CFO peer advice to green light purchases 🎯35% of CFOs look at online reviews such as G2 or Capterra 🎯26% rely on word of mouth from other CFOs 🎯Only 18% use marketing and website materials as their source for buying decisions Takeaways: CFOs are critical of vendor spin. CFOs are far more likely to consult the *dark social* of marketing (slack or WhatsApp groups with CFO peers) or online review sites. 7. CFOs expand headcount x2 when greenlighting tech purchases Ignoring AI warnings about replacing jobs, CFOs buying tech are actually growing their finance headcount x2 vs CFOs not buying tech. CFOs see the need for experienced "co-pilots" for tech purchases.

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