The Bottom Line: What happens when a CFO Resigns
Believe it or not, this is the 18th edition of the Bottom Line! I truly hope you're enjoying reading this newsletter.
This week, I've got content on:
– Spend management
– Finding future finance leaders
– And whether or not your company should bother with basic economy fares.
The Ultimate Guide to Spend Management
It's no secret that no one likes spend management. It's just not a fun topic. But, you know what is fun? Getting on top of your companies spending. So, that makes spend management a necessary evil.
Luckily, Spendesk is gonna make it pretty simple for you this week. Let's start at the beginning before we really dive in.
Spend management is mostly controlled by your company's expense policy. Even if your company has a well-defined expense policy, let's review it. The policy should include the following:
– A list of expense categories employees can claim
– The maximum amount authorised for each category
– A step-by-step process on how employees can claim expenses
– A process for handing any expense disputes
Does it include those things? If not, time to revamp it. Just remember to keep it simple, clear, and focus on fairness.
When you are redoing your policy, Spendesk suggests that you set a clear date for the switch-over. It's easy to forget this, or mess it up. But, set a date for the switch-over and give employees a long time to prepare.
This is also a great time to implement spend management software. A few tools that might fit:
– Expensify is a popular choice for small and medium sized businesses.
– Receipt Bank is great for managing and extracting expense data.
– FinancialForce is built for large companies with complex spending to manage.
That's all I've got for you here. If you need more info on the topic, click the link for the full scoop...
Advice for Finding Future Finance Leaders
Two things from Financial Management (FM) caught my eye this week. First, I saw their post stating that nearly half of CFOs don't have a succession plan in place. That's not ideal. But, that's not the piece I'm featuring here.
Rather than talk about how many financial leaders don't succession plan, let's fix the problem. FM also dropped this piece about finding future finance leaders.
The first step in finding a future leader? Start early.
By that, FM means that you shouldn't just focus on finding people who are already leaders. Instead, try to find financial pros who have leadership potential. Richard Scott, the VP of finance at Dow Jones says that your future leaders should have a wide range of skills.
Traditional finance skills and technical knowledge are obvious. But, also try to find people who embrace digital innovation, and have the interpersonal skills to form strategic partnerships.
The second step: test people.
The best companies are using psychometric testing to uncover those traits that I just mentioned above. A solid psychometric test will help you identify initiative, problem-solving, tenacity, gregariousness, resilience, and a whole bunch of other traits that you’ll want in a leader.
The third step: adapt to change.
Organizations, and specifically finance roles, are changing really fast. You need future leaders who are good at handling change. Look for potential leaders who are actively looking to improve their skills. Maybe that person is someone who seeks out her (or his) own professional development opportunities.
Want more? You know what to do…
The Hit List
Here's a few things that caught my eye this week...
1) CFO.com's metric of the month: Daily Cash Position. It can be a labor intensive number to figure out, but it'll help you deal with volatility in the market.
2) What happens when your CFO leaves? Your stock drops by 15%...or at least that's what happened when Sonos' CFO resigned.
3) Forbes dropped their list of the most innovative Fintech companies for 2019.
Pick of the Week
Are basic economy fares a good choice for your company’s travel? Shelby Byrnes, a travel consultant at Lola.com, dives into basic economy on our LinkedIn page: