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Archives for January 2022

The Skillset of the Modern CFO: 4 Essential Qualities for Success

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Today’s CFOs find themselves asking…

Am I analyzing the best metrics for profitability?

Do I understand the resources available to me now?

Is my organization primed to adapt to the continued financial uncertainly from the pandemic?

Amidst the rapidly changing business climate, corporate finance leaders need to stay a step ahead. Strategic decision making has never been more critical. The explosion of technology, data and analytics has offered CFOs the ability to better forecast, plan and budget.

If that’s you, you better be on board with the changing times and ready to expand your role. Here are four qualities that are now an essential part of a CFO’s skillset:

  1. Strong technological capabilities. The latest technology is a huge asset, especially when it comes to financial decision-making. Those who can master automation, analytics and process mining tools can respond faster to change, drive better performance and expand your capability as a strategic thinker. The best CFOs leverage new technologies to gain insights and make them actionable.
  2. Advanced listening skills. Listening is an important skill for any business leader, but today’s CFO are tasked with empowering teams, giving advice and counsel, and providing a voice of reason. Think of it this way: You’re not responding to requests for solutions, but working together to uncover the reasons behind the issues.
  3. An agile approach to forecasting. “Bigger picture” thinking is needed across the board to help ensure organizational longevity. Business can change overnight — as we’ve seen since the onset of the pandemic. Adopt a more responsive approach that steers away from structured forecasting, and instead continuously ask questions and formulate scenarios that anticipate change.
  4. Top-notch collaboration skills. Modern CFOs look beyond finance and keep up with the challenges across other areas of business by teams at every level. This offers increased visibility into how finance can partner with different units and better understand what your organization really needs to succeed.

An opportunity for reinvention

Consider the skills, qualities and personality that your organization needs in a CFO, as the role grows beyond its traditional functions. Having the right financial leader at the helm will better position your organization for challenges that lie ahead.

Don’t have a CFO on board yet? At Magone & Co, we offer outsourced CFO services that align with your organization’s mission and goals. For more information, reach out to us today at 973-301-2300 to request a free consultation.

 

COVID-19 is Accelerating Your Risk of Fraud. Here’s How…

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Did you know that half of U.S. companies uncovered more fraud after the COVID-19 pandemic began than before? So if your business is finally welcoming employees back in person, don’t be surprised if you discover an increased incidence of scams and corruption.

Read on for guidance on how to position your company for a fraud-resistant future.

Assessing new risks as business vulnerability increases

If most of your employees worked from home during the pandemic, managers may have found supervising their activities a challenging task. Even if you kept workers physically on the job, it’s likely been difficult to maintain the usual supervisory levels and anti-fraud procedures in the new world of work.

In either scenario, you may have unknowingly created greater opportunities for dishonest employees to steal. Your employees may have also fallen victim to fraud schemes committed by third parties, such as customers and suppliers — and especially cybercriminals.

Now’s an ideal time to evaluate your internal controls with a fraud risk assessment (FRA). An FRA identifies the potential schemes facing your organization and the processes that can help detect or prevent their occurrence.

For example, let’s say you pivoted from making perfume to producing hand sanitizer during the pandemic. An FRA can look at your vendor vetting and new-hire processes to determine if you require new, more rigorous ones. If you’re now selling products primarily online, an FRA can assist in determining if your cybersecurity protections and payment systems are fit for the job.

Investigating misconduct and building your case

If your FRA reveals a suspicious transaction or an employee makes a fraud allegation, don’t wait to investigate. According to a report by the Association of Certified Fraud Examiners, typical fraud results in a median loss of $8,300 per month — a significant number for the majority of companies.

A thorough fraud investigation requires knowledge of employment law and advanced accounting principles, as well as tremendous attention to detail. A fraud expert — usually a CPA or forensic accountant — can lead the investigation, and establish the appropriate parameters and the type of evidence needed to successfully prosecute. This type of professional can also offer recommendations on how to prevent new fraud incidents through enhanced controls.

Stopping fraudsters in their tracks

A lot has changed in the business world since early 2020. As you navigate novel challenges, don’t forget to keep fraud prevention top of mind. The knowledgeable CPAs at Magone & Company can lend our fraud protection expertise to help your business remain unscathed. Give us a call today at (973) 301-2300.