You have your 2021 Budgets done with Board approval.  After a gallant fight in 2020 we are catching our collective breaths and prepping to attack the New Year.

Not many predicted the economic uncertainty that we faced due to COVID-19.  However, this presented unprecedented opportunities for the CFO chair.  If we look at this in a positive light, this continues to present the opportunity for every CFO to rise to the occasion and add massive value to your firms.

Here are 5 moves that CFOs can make immediately to ensure that 2021 starts out in a productive direction:

1. Cash Flow Analysis – still King! Forecast it, track it, provide in-depth variance analyses.  Planning for downside scenarios should not only include the cash flow / profitability scenarios but solidifying the balance sheet prior to Round 2 happening.
2. Provide Unwavering Leadership – not only to your team but to the organization as a whole. Our teams have been working under extraordinary challenges and we must recognize that the fatigue factor can weigh heavily on morale, performance, and culture.
3. Take your CIO out to dinner – technology will be playing an even larger role in core competency, competitive advantage and providing a clear picture of the financial health of your organization. The core of this starts with the CIO.  It is now more important than ever that the Finance and IT functions have absolute clarity on its direction and shared goals.  Both should be somewhat versed in the other’s specialty to contribute to more productive combined efforts.
4. Implement an Agile Business Model – continue to focus on customer strategies and rebuilding revenue. This requires extensive communication throughout the Sales and Marketing funnels.  Based upon a recent PWC report, 28% of CFOs anticipated increasing revenues in 2021.  This obviously places a large reliance upon knowing your customers and their financial condition as we look to increase this percentage.
5. Revisit Communication Patterns – we all started out promising ourselves to communicate more openly and often to get our organizations through the challenges. Take an honest look and evaluate.  Ask yourself, “Are we still doing enough?”

As we leave 2020 and enter 2021, wishing all the best to those of you leading companies into the fray!