CFOs Can Elevate Board Communications by Using AI-Driven Cash Flow Performance Platform

Tesorio Insights
April 22, 2021

One of a CFO’s most important jobs is communicating a clear and accurate picture of the business to its board of directors. If the board doesn’t trust the CFO’s information or find it useful in making decisions, it will damage the CFO’s credibility and impede the organization’s success and growth.

Despite the importance of CFO-to-board communications, McKinsey & Company says it still sees CFOs “who are unpracticed at engaging their board of directors effectively.” Fortunately, today’s CFOs have a platform at their disposal to turn around such underwhelming engagement.

5 Ways AI-Driven Cash Flow Improves CFO-to-Board Communications

When the past, present, and future of cash flow is available in an on-demand, holistic view that includes AI-detected cash patterns and variance analysis in real-time the CFO can surpass all board expectations by:

1. Focusing on Strategy and Creating Value

With artificial intelligence in the background identifying cash flow patterns and automating finance tasks in response, business strategy moves to the forefront of the finance organization. The CFO spends more time providing real-time financial insight for the business, and strategizing ways to improve and more effectively leverage working capital to create additional value. And as McKinsey aptly asks, “Has there ever been a time when boards of directors were more in need of the sharp, fact-based counsel of a value-savvy CFO?”

2. Anticipating Board Questions

As the CFO presents the board package, directors inevitably ask questions, sometimes a lot of questions. Especially over the past year, CFOs have reported more frequent and urgent questions about where the business will land on cash tomorrow, next week, next month, and next quarter. With more real-time, on-demand data at their fingertips, CFOs can answer these questions on the spot rather than promising to get back to the board in a few weeks. Better still, the CFO can actually anticipate and address the questions before they’re asked. That’s how you impress the board.

3. Identifying Trends Faster

AI-empowered connected finance tools quickly detect patterns in data that would otherwise take humans days, weeks, or months to discover. When that kind of power drives the cash flow view, the CFO can identify trends at their earliest point and develop and present a plan to the board that fully capitalizes on positive patterns or mitigates negative ones. Such foresight strengthens the bottom line, helping the board fulfill its most important responsibility.

4. Providing Financials Sooner

Because it delays critical decision-making, board members dislike waiting on financial statements. Manual spreadsheets unnecessarily extend the production of this information, but AI-enabled connected finance tools speed up the process. No matter whether it is periodic statements or on-demand financials needed during uncertain periods, the CFO delivers without unnecessary delay, so the board can make critical decisions as quickly as possible.

5. Facilitating Business Scale

Board members also want to understand the potential return on capital investments and acquisitions before they’re undertaken and to see their actual impact after the fact. It’s much easier for the CFO to analyze such decisions, make forecast predictions, and generate goal-to-actual reports with an automated platform.

Give the Board What They Want

The CFO role has changed drastically, so CFOs need updated tools that can transform the way they communicate with the board. See all that’s possible by requesting a demo of Tesorio Cash Flow Direct.

See How Tesorio Can Boost Your Cash Flow

The cash flow performance platform that helps you better manage, predict, and collect cash
April 22, 2021
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