Apr '25 • Newsletter
CFO Skillsets | May 2025 – Get Lean, Stay Smart, and Use AI Better
🧠 Executive Snapshot
The economy’s walking a tightrope—cooling inflation, no rate cuts in sight, and rising risk across commercial sectors. This isn’t the time to coast. It’s the time to tighten, prioritize, and lead. Your role as CFO or controller isn’t just to report the past—it’s to shape the next move. Let’s get into what matters this month.
📉 Market Pulse: Inflation Flatlines, But Not Where It Counts
Inflation rose 0.3% in April, bringing YoY CPI to 3.6%. That looks fine—until you dig into services, where prices (rent, insurance, healthcare) keep climbing. That’s the part the Fed watches most.
What to do: Update your model using three interest rate paths:
- No cuts in 2025
- One cut in Q4
- One hike mid-year
Plan your debt coverage using worst-case survivability, not optimism.
📊 From the Controller’s Desk: ASC 606 is Wrecking P&Ls
Nearly half of reviewed mid-sized businesses are mishandling revenue recognition. Under ASC 606, it’s not about when you send the invoice—it’s about when you fulfill the obligation.
Your checklist this month:
- Review how deferred revenue is posted
- Match contract terms to revenue triggers
- Use ERP tools (Sage, NetSuite) to automate compliance
Run a 3-month internal audit. Don’t assume your ERP is doing it right.
♟️ Strategic CFO Moves: The M&A Window Is Quiet—but Not Closed
PE firms are sitting on over $1T in dry powder. Deals are slow, but that’s not permanent. If rates stabilize or asset prices dip, the gates open.
Be ready before the flood:
- Clean up your 3-year financials and forecasts
- Normalize EBITDA now—not during due diligence
- Keep your key contracts, leases, and org docs organized and accessible
In M&A, speed = leverage. Don’t lose deals by being unprepared.
🤖 AI + Finance Playbook: Let ChatGPT Group Your GL
This is a no-brainer. If you’re still manually sorting GL accounts for reporting, budgeting, or board decks—stop.
Try this:
“Organize the following chart of accounts by function (Sales, Ops, Admin, G&A) and return as a clean table.”
Drop in your export, get it grouped in seconds. Tweak as needed. Upload back to Excel or your model. Faster close, cleaner reports.
✅ One Action to Take This Month: Audit Strategic Spend
Look at your top 10 expense categories and link each one to a project, department, or goal.
Ask:
- Is it strategic, or just habitual?
- Is there a measurable return?
Cut drift. Double down where there’s lift.
💬 Community Prompt
What strategic shift are you making this quarter?
Drop it in the Skool group. Best answers will be featured in the next issue.
This isn’t just a course, it’s your edge.
Apply one thing. Share one thing. That’s how we all move forward.
Dan
CFO Skillsets
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CFO Skillsets | May 2025 – Get Lean, Stay Smart, and Use AI Better
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