How CFOs Can Set the Foundation for a Cash-Focused Culture – Gary McGaghey Explains
As the Chief Financial Officer (CFO) of a business, you are responsible for setting the foundation for a cash-focused culture. It’s a crucial role that can have a major impact on the company’s success. Fortunately, Gary McGaghey, a certified public accountant and creator of the Cash-Focused Culture Model, has the answers.
In this article, he explains how CFOs can set the foundation for a cash-focused culture. With McGaghey’s insights and advice, CFOs can become the driving force behind a successful cash-focused culture in their business. By taking the necessary steps, CFOs can create a strong financial foundation and ensure their organization’s long-term health.
Find out more information about Gary McGaghey: https://www.crunchbase.com/person/gary-mcgaghey
Steps CFOs Can Take To Set the Foundation for a Cash-Focused Culture
The following are the key components of the model and the steps CFOs can take to ensure the success of each.
Creating a Cash Management System
Creating a comprehensive cash management system is the first step in setting the foundation for a cash-focused culture. The system should outline the company’s financial goals, the types of transactions that need to be tracked, and the processes for collecting and analyzing data. It should also include procedures for reporting on cash flow and addressing cash flow issues.
Communicating the Cash Management System to Employees
Once the cash management system is in place, the next step is to communicate it to employees. This is an essential step in creating a cash-focused culture, as employees need to understand the system and their role in it. CFOs should clearly explain the system to all employees, outlining the processes and the consequences for not adhering to it. Additionally, CFOs should make sure to emphasize the importance of the system and how it contributes to the company’s overall success.
Implementing Cash-Focused Policies and Procedures
In addition to creating and communicating a cash management system, CFOs should also implement cash-focused policies and procedures. These policies should be designed to ensure that the organization remains focused on cash flow and that all decisions are made with cash flow in mind.
Tracking and Analyzing Cash Flow
Finally, CFOs should track and analyze cash flow on a regular basis. This will allow them to identify potential cash flow issues before they become a problem and take steps to address them. Additionally, tracking and analyzing cash flow will give CFOs valuable insights into