The checklist presents a sample schedule for the CFO. It covers strategy, culture, expectations, leadership, relationships, budgets, investors and more.
CFO Objectives Plan
0 – 30 Days
- Schedule due diligence meetings with leadership team to better understand:
o Strategy
o Short-term, long-term goals
o Culture, how I can best be effective
o Expectations of my role/ department
o Past successes
o Potential risks - Familiarize myself with senior leadership relationships; identify any potential risks; and how I need to integrate into the team.
- Meet with my CEO, peers, and direct reports to establish relationships, determine most critical issues, staff capabilities.
- VC/PE funding. Reconfirm existing or build:
o Road map to financial close
o Budgets, Aggregate Use of Proceeds
o Raised Amount(s)
o CAP Table
o Start developing investor presentation/deck - Investor & Banking Relationships:
o Review current equity, debt covenants and associated warrants
o Reach out to current equity and debt holders to introduce myself - Working Capital Capacity, review:
o venture debt revolver terms, monthly reports
o Credit Card
o LOC
o Current cash flow analysis to better understand short term cash needs - Financial Reporting / Accounting:
o Review books
o Review tax returns, confirm state and federal filings
30 – 60 Days
- Next funding. Reconfirm existing or build:
o Pre-Money Valuation $___? M
o Investor Deck – continue to work on with management team - Working Capital Capacity:
o Identify opportunities to expand capacity – extend vendor payment terms, increase client deposits, other. - Financial / Accounting Reporting:
o Relationship with CPA firm
o Financial Controls
o Budgets:
§ By team
§ Instill discipline on individual budgets
o Existing initiatives: any to be axed or deferred to free resources? - Human Resources – perform full audit:
o Employee Handbook
o Policies & Procedures
o Liabilities
o Current or potential litigation - Efficiencies / low hanging fruit/ quick wins
o Cost analysis and identify
o Develop and implement action plans to gain efficiencies
60 – 90 Days
- Next funding. Reconfirm existing or build:
o Cash flow model, estimate runway length, using existing and forecasted bookings
o Investor Deck – complete draft - Investor & Banking Relationships:
o Deepen relationships with debt, equity holders
o Explore options for alternative banks, possibly taking out incumbent - Working Capital Capacity:
o Create down payment matrix for salesforce: i.e., 10% of 1st year anticipated distribution; 5% of first 24 months of anticipated distribution. - Financial / Accounting Reporting:
o Payroll and time keeping processes
o Monthly Financial Close Process - Human Resources:
o Create action plan for any deficiencies
o Review Organizational Chart
o Determine if additional resources are needed
o Review recruitment process
o Recruit staff to supplement team as needed
o Existing initiatives: any to be axed or deferred to free resources? - Emergency contingency planning/ identification
o Who’s on the team?
o What are the needs?
o Pre-arrange alternative work locations, power, HVAC, etc.
90+ Days
- Stakeholders, leadership team, peers:
o Obtain consensus on top strategic priorities
o Maintain regular, effective communication processes
o Communicate priorities and accomplishments - Financial / Accounting Reporting:
o Determine # of transactions / week
o Determine need for additional/ new resources
o Evaluate existing accounting software
o Budgets:
§ Build variance reporting ( @ 2 weeks matching payroll cycle)
§ Re-enforce discipline on individual budgets - Review existing and establish any new Key Performance Indices
o Book to Bill ratio
o A/R Aging
o A/P Aging
o Days to financial close - Efficiencies
o Periodic reviews to identify and gain efficiencies(Source: CFOLC)