Thursday, September 3, 2015

Tips for Handling Business Finances as a Modern Day CFO


New York resident Roy Dowdell provides consulting on the financial aspects of business. Roy Dowdell possesses expertise in US Securities and Exchange Commission reporting, financial management, and working with chief financial officers to increase net income and profits.

With corporate finance and government regulations constantly changing, a chief financial officer (CFO) should consider the following tips for handling cash flow, risk, and earnings.

1. Never borrow funds from future earnings. This form of financial engineering, derived from earnings calls and projections, can quickly spiral out of control and cause long-term challenges in meeting quarter-end goals. This is especially true in the retail and hospitality sectors.

2. Invest in activities that enhance future growth. Consider discovery-driven planning and option value that will help a company stay competitive in its market. Innovation is the key to growing success, and that occurs when a CFO looks beyond traditional budgeting.

3. Look into debt financing to create shareholder value. This option provides vital funds to support acquisitions and is especially advantageous when stock prices are negatively impacted by rising interest rates.