Sam McQuade CFO of Panterra Finance talking about fractional Chief Financial Officer benefits these days: What’s driving that investment in expertise? Often, CEOs who are at a strategic crossroads and recognize the value of an expert financial adviser who can help them grow market share, and their businesses. In short, smart companies now view the CFO position — both internal and on a virtual or fractional CFO basis — as more of an investment than an expense. There’s no doubt that a global pandemic made the value of an experienced hand on the finance helm very evident. But our take is that there’s more to the rise of the CFO than an economic crisis. Let’s look at the role, responsibilities and skills finance chiefs need to serve their companies well.
In these early years of creating innovations in the corporate C-Suite, Sam McQuade nurtured and created a maverick approach to new finance operations for Stryker as it broke through to the lucrative emerging markets in Central and Eastern Europe (CEE)). While approaching the markets in the growing economies of Poland, Czech Republic, Hungary, Croatia and Romania, Sam McQuade was recognizing the need for Interim and Fractional CFO’s for the avalanche of incubators and startup companies in these underdeveloped economies that were on the cusp of being integrated into modern International Finance systems and markets. See more information on Sam McQuade CFO of Panterra Finance.
With technological advances disrupting job descriptions, the organization will have its share of fear and resistance. Given the close collaboration between finance and information technology, the CFO is in a unique position to anticipate the future needs of organization and help mentor people with their reskilling into other growth areas. What else do you think CFOs can be doing now to adapt to the future? I’d be very grateful if you provide your comments and share your thoughts. Thank you!
Forecasting: Importantly, CFOs don’t only report what is — a significant part of their value to an organization is their ability to accurately predict likely future outcomes. That includes financial forecasting and modeling based not only on the company’s past performance but on internal and external factors that may affect revenue and expenses. The CFO is tasked with making sense of the various departmental level forecasts to create profit projections for the CEO and shareholders.
The main goal of a DAO is to decentralize power. In a traditional organization, the power is concentrated in the hands of a few people. This can lead to corruption and cronyism. With a DAO, the power is decentralized, and it is distributed among all the members of the organization. This makes it much more difficult for any one person or group of people to abuse their power. A better real-life example is Ukraine DAO, which is a fundraising effort to help the people of Ukraine in the current war against Russia. It collects and distributes funds to various Ukrainian charities. The funds are collected through Ethereum’s smart contracts, and they are then distributed to the charities according to the code that governs the DAO.
A fractional CFO is an experienced CFO who provides services for organizations in a part-time, retainer, or contract arrangement. This offers a company the experience and expertise of a high-end CFO without the in-house cost—salary, benefits, and bonuses—of a full-time CFO. Unlike a full-time CFO who oversees and maintains all general financial strategy or an interim CFO who performs CFO duties before or between CFO hires, a fractional CFO’s duties are typically on a project basis and specifically tuned to the company’s particular challenges or goals.
As independent internal auditors, we compile in-depth audit reports that convey insights on both known and unknown risks and vulnerabilities in order to protect your business. We hold a niche in capital project auditing and in assisting start-ups with outsourced Internal Audit services.
A DAO is a decentralized autonomous organization that is run by smart contracts on the Ethereum blockchain. It is an organization or company that is not centrally controlled by any one person or entity. Rather, it is governed by code that is written into the smart contracts. This code can be modified or updated by anyone who has access to the DAO’s GitHub repository. To put this into perspective, imagine a traditional company or organization. There is usually a board of directors or executive team that makes all the decisions about how the company will be run. With a DAO, there is no such thing. The code that governs the DAO is open source and available for anyone to view and audit. In this new scenario, an organization can be run by anyone in the world who has an internet connection.
The answer is to bring in a qualified CFO to work closely with the CEO or business owner. The CFO must embrace the vision, but also translate this into the operational and financial framework to achieve success. Dealing effectively with stakeholders is another key function. This includes managing expectations, presenting financial information, and understanding the varied and legitimate interests of owners, creditors, and lenders.
Looking to hire your first CFO or wanting only some interim coverage? We offer solution CFOs for urgent short term projects and longer term engagements. Customizable with transparent pricing so you cover your business and don’t have to rush into a potentially bad solution and costly full time hire. Along with the core services of C-Suite Level Executives in Finance and a contingent of Fractional CFO talent and experienced Intermittent CFO innovators, Panterra Finance services include: international Business – Experts in Global Tax Liabilities and Cash Flow Strategies, investments and planning. Mergers and Acquisitions (M&A) Advisory – Providing valuations as well as independent perspectives on offers and options. Internal Audits – Independent internal auditors with in-depth reports highlighting risks and vulnerabilities. Risk Management – A worldwide footprint enables Panterra Finance to identify risks and opportunities in the new world economy. Compliance Review – Actionable understanding when entering markets with new rules, regulations, laws and international asset allocation decisions. Read additional information on Sam McQuade.
