70 Strategic Questions To Ask a CFO.

Few roles in a company are as important as the CFO. The Chief Financial Officer is responsible for the organization’s financial health, considerably impacting its long-term success.

Asking the right questions is essential to getting the most out of your CFO. Here are 70 questions to ask your CFO and get insights into the inner workings of your company’s finances.

These questions cover strategies, marketing, globalization, digitalization, financial reporting, budgeting and forecasting,  and risk management.

With these questions, you’ll be able to get a clear picture of your company’s financial situation and make informed decisions about its future.

I. Strategy- Strategic Questions To Ask a CFO

1. How Does The Company’s Strategy Relate To The Overall Business Environment?

The chief financial officer should respond to this query by describing how the company’s business environment influences its strategy.

They should go into detail about the changes occurring in the industry, which competitors are doing well, how they are doing it, and what opportunities may exist for the company to grow.

This can be answered with an example: “As you know, our industry has been undergoing some significant changes recently. Competitors have begun using new technology to offer lower-cost products, and this has caused our revenue to drop considerably.

However, we plan to launch a new product line that will allow us to compete with the low-cost providers. We believe this will increase our market share.”

They can also provide tips on what to look for in the business environment, such as: “When evaluating the business environment, it’s important to consider changes in technology, demographics, customer needs and preferences, government regulations, and the competitive landscape.”

2. What Are The Drivers Of Revenue Growth?

The chief financial officer (CFO) should answer this question by explaining how revenue growth is affected by business strategy and how it’s measured.

For example, if a company is looking to increase its revenue growth rate, it might consider increasing its marketing budget or hiring more salespeople. These changes would directly impact the company’s revenue growth rate because they would increase the number of monthly products sold.

The CFO should also explain how they can measure this change in their strategy. In other words, they should explain what metrics will be used to track and measure the success of this new strategy.

They can answer like this “Revenue growth is typically measured by looking at the change in revenue from one period to the next.

To increase our revenue growth rate, we plan to increase our marketing budget and hire more salespeople. We will track our progress by measuring the change in our monthly revenue.”

3. What Are The Main Risks And Opportunities Facing The Company?

The chief financial officer should answer the question by identifying the company’s principal risks and opportunities. The main risks include declining revenue, increased operating expenses and liabilities, and the loss of key customers or employees.

The main opportunities include new markets, new technologies that can be applied to existing products or services, and cost savings through mergers and acquisitions.

The chief financial officer should also provide an example of how to answer the question by providing an example of how he would answer this question if he were asked it today.

For example, let’s say that a client asked him what the principal risks and opportunities his company faces today. He might respond by saying: “Our biggest risk is that we will lose some key clients if our competitors can provide better service at a lower cost than we do.”

He can also answer, “Our biggest opportunity is to enter new markets we have not served before.”

4. What Do You Consider To Be Our Strengths And Weaknesses?

The chief financial officer (CFO) should answer the question by first identifying our strengths and then moving on to our weaknesses.

The CFO can review the most recent reports on our company’s performance to identify our strengths. These would include things like revenue, profit margins, and cash flow. The CFO should use these to summarize our performance in those areas.

For example: “Our company is currently doing well in revenue growth and profitability.”

Then, the CFO should move on to identifying our weaknesses. Here again, they can look at reports that show how well we are doing in various areas of weakness. For example: “We have some trouble with cash flow management.”

Moreover, the CFO should also provide an action plan for addressing these weaknesses. For example: “We will improve our cash flow management by implementing a new accounting software to help us track our expenses better.”

5. How Can We Improve Our Performance In Each Of Our Key Operating Units?

The CFO should first list the critical operating units to answer this question. Depending on the company, they may differ, but generally, they should include the most critical units.

For example, if a company has an IT department, it might have three primary operating units: system maintenance (systems), software development (development), and customer support (support).

The CFO should then ask each unit’s head to provide their answers to the question, “How can we improve our performance in each of our key operating units?” The answers will be different depending on what each unit does, but some general trends can be seen across all types of companies.

For example, some common answers for system maintenance are: change management, training and development for technical staff, ensuring that hardware is up-to-date and properly maintained, etc.

There are also common answers for software development: ensuring that there is adequate testing before releasing new updates, having clear goals for each project, making sure that developers have access to any documentation or information necessary for completing the project, etc.

Finally, customer support teams often struggle with getting enough help from other departments like sales or marketing since those teams usually require more resources than customer service does

6. What Is Your View On Our Balance Sheet, Liquidity Position, And Capital Expenditure Needs?

The chief financial officer should answer this question by discussing their view on the balance sheet, liquidity position, and capital expenditure needs.

The balance sheet is an accounting summary of what a company owns (assets) and owes (liabilities). The liquidity position is how easily a company can meet its short-term financial obligations. Capital expenditures are costs incurred to maintain or expand production capacity.

For example, if a company has a large amount of cash on hand but little in the way of assets or liabilities, it may be able to pay off short-term obligations quickly while retaining money for future use. This would indicate that they are in good shape financially.

If they have sufficient assets and few liabilities but little cash on hand, this could indicate that they might not be able to meet their short-term obligations without going into debt or selling off some assets.

Additionally, having a large amount of debt could indicate that they are over-leveraged and at risk of financial distress.

7. What Is Your View On Our Debt Management Strategy?

The CFO can answer the question by explaining that the company’s debt management strategy is to maintain a manageable level of debt. They should then explain that this strategy has been successful for the past three years and that the company has been able to pay down its debt without increasing its cash flow by more than 5%.

The CFO should also explain how they plan to continue this strategy in the future. They can do this by outlining goals for the next year, such as reducing borrowing costs and increasing cash flow.

CFO’s example answer is, “Our goal is to continue our debt reduction strategy while maintaining a manageable debt level. We will achieve this by reducing our borrowing costs and increasing our cash flow.”

With these goals in mind, the CFO can provide a detailed debt management plan to help the company achieve its goals.

8. How Would You Rate Our Risk Management Processes And Procedures?

They can answer this question by explaining their robust and weak risk management processes and procedures.

First, they should explain how they measure their risk-management processes and procedures. For example, they might say, “We use a set of metrics to help measure our process: we look at the ratio of high-risk loans to low-risk loans, as well as the ratio of bad debts to good debts.”

Next, they should discuss how their risk management processes and procedures are implemented. For example, “We work with employees from all departments to ensure that all loan applications are reviewed before being approved.”

Finally, they should discuss how their risk management processes and procedures will improve in the future. For example: “We’ve begun using artificial intelligence tools to review loan applications; this will allow us to more accurately predict which loans will lead to good or bad outcomes.”

9. How Would You Describe The Company’s Current Financial Position Regarding Liquidity, Leverage, Profitability, And Balance Sheet Flexibility?

When answering questions about the company’s current financial position, the chief financial officer should consider the following factors:

Liquidity: This refers to how easily a business can pay its debts. The measure of liquidity includes cash and cash equivalents on hand, accounts receivable, and inventory.

If a business has a high level of liquidity, it can pay its debts quickly without selling off assets or borrowing money.

• Leverage refers to how much debt a company uses to fund operations. A high level of leverage can result in high-interest payments that may impact profitability. In contrast, a low level of leverage may not allow a company to grow as quickly as desired.

• Profitability: You measure this by profit margin (revenue minus expenses) divided by sales. Profitability is essential because it indicates how efficiently a company generates revenue from its operations.

• Balance sheet flexibility refers to whether or not a company has enough assets available to meet short-term obligations (such as paying employees) while maintaining long-term solid growth potential based on assets such as equipment and buildings that generate revenue over time.
  

After considering these factors, the CFO should be able to give a clear and concise answer that describes the company’s current financial position.

For example, they might say that “the company is currently in a strong financial position with high liquidity, low leverage, and good profitability. This allows us to continue growing without taking on too much risk and weather any potential storms coming our way.”

10. Who Will Be Responsible For What, And How Will They Report Their Progress Back To You?

The chief financial officer should be able to answer this question by outlining the roles and responsibilities of each team member involved in the company’s finances.

For example, they might say, “the accounting team will be responsible for preparing and maintaining the financial statements, while the treasury team will be responsible for managing the cash flow.

Each team will report back to me every month so that I can track our progress and identify any areas of concern.”

II. Marketing- Strategic Questions To Ask a CFO

11. What Is The Company’s Marketing Strategy?

They should answer this question with a brief overview of the company’s marketing strategy. The CFO should be able to answer questions about what marketing strategies the company has implemented, why, and how effective these strategies have been at moving the needle in sales or brand awareness.

Moreover, they should also be able to speak about how they have worked with other departments within the organization to ensure that all aspects of marketing are aligned, including social media campaigns, website updates, print advertisements, email blasts, and more.

Finally, the CFO should be able to explain how they are looking at new industry growth opportunities, whether it’s through partnerships or acquisitions, and how those opportunities align with their current marketing plan.

12. Why Does The Company Need A Marketing Department?

The chief financial officer should answer this question by telling the interviewer that a Marketing department is essential to the company because it establishes an identity for the business and helps with branding. It also helps the company to reach out to consumers and create relationships with them.

They could also give an example of how they would answer this question by saying that marketing can help create a brand image for a company, allowing it to be more recognizable among its competitors.

Moreover, they could also mention that marketing can help companies find new ways to connect with customers, which will help them grow their business.

13. What Are The Goals Of The Company’s Marketing Department?

The chief financial officer’s answer to a question about marketing can be a bit complicated. They may say that the goals of the company’s marketing department are to increase sales, market share, and brand value.

In addition to sales growth, they may also discuss how they want to improve customer retention and loyalty, as well as how they want to increase market share. The chief financial officer may also mention that they are looking for ways to grow their customer base by increasing customer satisfaction.

If the company is not profitable, the chief financial officer may say they are planning to turn things around. This may involve reallocating resources to the marketing department or increasing advertising spending.

The bottom line is that the chief financial officer should be able to answer questions about the company’s marketing goals clearly and concisely. They should be able to explain how these goals will be achieved and what metrics they will use to measure success.

14. What Is Your Role In The Company’s Marketing Strategy?

There are many ways that the chief financial officer can answer this question, depending on what their role is in the company’s marketing strategy. Suppose they’re also a member of the executive team or responsible for approving marketing initiatives.

In that case, they may answer by saying that their role is to ensure that any marketing efforts are cost-effective and result in positive returns on investment. They may also say that they ensure that the company’s marketing efforts meet all stakeholders’ needs.

If they have no part in approving marketing initiatives, they may say that their job is to ensure that all bills are paid on time, so they can’t talk about how they contribute to the marketing strategy.

In any case, the chief financial officer’s answer to this question should be honest and reflect their actual level of involvement in the company’s marketing strategy.

15. Is There Anything That Could Be Done To Increase The Visibility Of Our Company On Social Media?

The chief financial officer may answer this question by saying that several things can be done to increase visibility.

For example, they could say that the company should look into using ads on social media or even having a dedicated page for their company and product on Facebook, Twitter, or Instagram. They could also suggest that the company consider hosting a giveaway or contest on these platforms.

Another option would be to get more people interested in the company by hiring an influencer to discuss their product. This could be done by paying them to post about the product on their social media channels or even giving them free products in exchange for talking about the company.

Finally, the CFO could suggest that the company partner with other companies with a similar target market. This could involve cross-promotion, where each company promotes the other on its social media channels.

16. How Does Your Company Define Success In The Marketing Department?

As a chief financial officer, one of your primary responsibilities is ensuring that the marketing department achieves its goals. But what are those goals?

The most fundamental goal of any marketing department is to bring in new customers and keep them coming back. This is accomplished by creating ads that appeal to your target demographic and placing them in places where those people will see them.

The more effective your ads reach your target demographic, the more likely people will respond by purchasing your product or service.

If you’re looking for a more nuanced answer, here it is: the CFO may say that when she thinks about success in marketing, she thinks first about how well her team has executed their strategic plan.

When you chart out exactly what goals you want to achieve and then devise a plan for how best to achieve those goals while staying within budget constraints, it’s easier for everyone involved to know what success looks like and how close they are to achieving it.

17. How Should We Allocate Our Funds Between Traditional And Digital Marketing?

The chief financial officer may answer this question by showing how traditional and digital marketing can be split into two categories.

Traditional marketing includes advertising through a physical medium, such as print or TV. Digital marketing is done online via websites, social media pages, and email campaigns.

The chief financial officer could then go on to explain how each of these types of marketing has its strengths and weaknesses. For example, traditional advertising is usually cheaper than digital advertising but doesn’t have the same ability to target specific demographics or interests as digital ads.

But digital ads are also more expensive because they must be designed and crafted for each platform where they’ll appear. For example, an ad designed for Facebook might look very different from one on Twitter or Instagram.

Finally, the chief financial officer should explain that while some companies rely entirely on one type of advertising (either traditional or digital), others will use both to reach their target audience more effectively than they would allow. Here’s how CFO can answer it.” 

It depends on your target market and where they can be most effective. If your target market is primarily young people active on social media, you’ll want to put more of your marketing budget into digital channels.

However, if your target market is older and less engaged with social media, you’ll want to focus more on traditional channels like print and television.”

18. What Are The Top Three Areas You’re Looking To Improve Your Marketing?

Chief Financial Officers (CFOs) are tasked with managing a company’s finances and ensuring it operates within its budget. To do this, they need to know what works and doesn’t. This means that they need to be able to evaluate their marketing efforts, including which parts are successful and which ones are not.

CFOs typically have three main areas they want to see improved in their marketing: Cost-effectiveness, quality of leads or customers, and efficiency. They want their marketing team to be able to provide them with information on how much money they’re spending on each campaign and how many conversions those campaigns are getting.

CFOs also want their marketing departments to show them how much money each lead or customer is worth to determine whether it’s worth spending more on them. Finally, CFOs want their teams’ processes for generating leads or attracting customers as efficiently as possible so they can focus on other aspects of running the business.

19. Do We Want To Focus On Organic Growth, Or Do We Want To Increase The Number Of Leads And Make More Sales?

If you ask the chief financial officer (CFO) if you want to focus on organic growth or if you want to increase the number of leads and make more sales, they are likely to say that they want both.

The CFO will probably explain that even though investing in new marketing campaigns can help increase sales, investing in ongoing marketing efforts is essential so that you don’t lose your existing customers.

For example, let’s say that your company sells software. If you only focus on getting new customers, you might neglect your existing customers, and they could churn.

On the other hand, if you only focus on organic growth, it might take longer to see results, and you might miss out on potential new customers.

20. What Do You Think Is The Best Way To Attract Customers And Keep Them Coming Back?

The CFO will likely say several ways to attract and keep customers returning. Some of the things they might mention include providing a good product or service, offering competitive prices, having a good reputation, and providing excellent customer service.

They might also say that having a robust online presence is essential so potential customers can easily find you and learn more about your company. Finally, they might say that it’s essential to keep your existing customers happy to continue doing business with you and recommend you to others.

III. Globalization- Strategic Questions To Ask a CFO

21. What Are Your Thoughts On Globalization?

If the CFO asks, “What are your thoughts on globalization?” they may respond by saying that they believe globalization is good. They may also mention that they think it has allowed businesses to expand their reach and make more money, which is vital for the company’s future.

They may also mention that due to globalization, there are now more possibilities for customers to buy products from a wide range of places around the world, which is great for business because it allows companies to grow their market share and make more money by selling their products in more countries.

The CFO may even go so far as to say that if they could choose anything about globalization, it would be that it has made it possible for people worldwide to communicate efficiently through technology like phones and computers.

22. How Is Your Company Preparing For The Future?

The chief financial officer (CFO) may answer the question by saying that the company is preparing for the future by looking outside its current market and considering new opportunities in other countries.

The CFO may explain that this is a strategic decision made by the company’s leadership team to expand its brand recognition and increase sales.

They will likely stress that this decision is not being made lightly after carefully considering all options and potential risks in entering new markets.

They may also mention that the company has hired experts from around the world who are familiar with local customs and regulations, so they can help ensure that any new locations are thriving.

23. How Do You Feel About International Trade And Investment?

The chief financial officer may answer the question by stating that they feel international trade and investment are essential to the success of their company.

They may also state that they feel it is essential to grow with the world instead of staying in one place. Moreover, they may say that borders do not limit their company’s product or service, so they aim to serve customers wherever they are.

Another way the CFO could answer this question is by saying globalization has pros and cons. On the one hand, it gives a company access to new markets and revenue streams.

However, it can lead to increased competition from companies from other countries with lower costs due to less regulation, labor laws, or environmental standards. 

In some cases, this competition can also cause prices in those markets to go down. However, it can also impact local businesses because people will tend to purchase goods from companies based out of their own country before looking elsewhere if it saves money (which can happen when buying things online).

24. What Is The Role Of Cfos In These Matters?

The chief financial officer’s role in international trade and investment is to ensure that the company is prepared for the potential risks of doing business internationally.

The CFO can ensure that the company understands its international competitors and supply chain. The CFO may also ensure that the company has an emergency plan if it needs to respond quickly to an economic downturn or natural disaster.

As part of this responsibility, the CFO will ensure that all employees are appropriately trained to handle any issues arising while doing business overseas.

25. How Can Cfos Make A Difference In International Business Matters?

The chief financial officer is one of the most important members of a company’s leadership team. CFOs oversee all financial planning and budgeting and analyze and use data to make strategic decisions.

In what ways can CFOs make a difference in international business matters?

CFOs can help determine how much risk a company will take regarding global expansion. If they’re not willing to put their money where their mouth is, they won’t be able to convince others that they should do so either.

They also have insight into how much money the company needs to fund its international endeavors, which may help other leaders decide whether or not they want to pursue those opportunities.

26. Where Do You See The Future Of Globalization Going?

The chief financial officer may answer the question by saying that they see the future of globalization going in a positive direction. This could be because they believe that there will be continued global trade growth, which means that there will be an increase in international opportunities for their company to expand its business.

The chief financial officer could also say that globalization is going negatively because some countries restrict trade due to government regulations.

This may include countries that do not allow free trade agreements between their companies and other countries or ones where there are tariffs on imported goods.

When answering this question, it is important to give examples of how you think globalization will go in the future.

27. What Is Your Opinion On Globalization’s Impact On Small Businesses?

The chief financial officer may respond to this question in several ways. They might begin by saying that globalization has positively impacted small businesses, allowing them to grow and expand their operations in a way that would have been impossible without the rise of global markets. 

They might also mention that globalization has helped reduce the cost of doing business for small businesses, allowing them to focus on growing their business instead of just trying to stay afloat financially.

Finally, they might say that globalization has helped create more opportunities for entrepreneurs and small business owners who want to start or grow their own companies but don’t necessarily have much money or experience.

28. Do You See Any Downsides To Globalization? If So, What Are They?

Globalization is a complicated issue. Businesses enter an international arena filled with laws, customs, and cultural differences when they go global.

The chief financial officer may see the downsides to globalization as a threat to their company’s bottom line. When companies go global, they open themselves to new challenges and opportunities affecting their profit margin.

The CFO might mention that his company has seen challenges in hiring overseas workers with the necessary skills for specific projects. He may also cite problems with currency exchange rates or other factors that affect the bottom line of his company’s quarterly report.

These are just some examples of challenges businesses face when they go global. However, one could also view them as opportunities for growth if managed effectively by a strong leader like a CFO.

29. Do You Think That Globalization Will Continue To Grow In Popularity Or Decline Over Time?

The chief financial officer may answer this question in two ways. The first way is to explain that globalization will continue to grow. The second way is to explain that globalization will decline over time.

The chief financial officer might say that globalization will continue to grow in popularity because it has many benefits for companies.

Globalization can help companies expand their customer base and make more money, which allows them to grow their business. It also allows companies to increase profits by decreasing costs by outsourcing work overseas or by hiring foreign workers who are paid less than domestic workers.

The chief financial officer might also say that globalization will decline over time because globalization has had many adverse effects on society, such as increased inequality between rich and developing countries and increased crime related to immigration from poorer countries into wealthier countries like America or Europe.

There are many opportunities for illegal immigrants who cannot find jobs due to their lack of education or other skills required for employment (often when someone comes here illegally).

30. How Do We Know If Our Product Is Ready For The Global Market?

The chief financial officer might say that there are a few things to consider when deciding whether or not a product is ready for the global market. First, the company should consider whether or not there is a demand for their product in other countries. 

Second, they should research the laws and regulations regarding their product in potential export markets. Finally, they should evaluate whether or not their product can be produced at a competitive price in the global market.

After carefully weighing all of these factors, the management team of the company should decide whether or not to enter the global market.

IV. Digitalization- Strategic Questions To Ask a CFO

31. What Are Your Current Digitalization Efforts?

If you ask the chief financial officer about their current digitalization efforts, they may answer with a list of strategies they have implemented or are currently working on. They may also give you a brief overview of how they use technology in their business.

Suppose they are just beginning to implement digitalization strategies. In that case, they may be able to give you an idea of what they hope to accomplish and any challenges that might be preventing them from doing so.

Suppose they have already been implementing digitalization strategies for some time. In that case, they may be able to tell you how successful those efforts have been and if there is anything else that needs to be done to realize digitalization’s benefits fully.

They might answer like this “We are currently working on implementing an enterprise resource planning system that will help us automate some of our processes and make them more efficient. We are also developing a mobile app to allow customers to access our services more easily.”

32. How Do You Intend To Increase The Use Of Digital Tools In The Future?

One way the chief financial officer may answer this question is by saying that they are already working on increasing the use of digital tools in the future.

They can explain how they intend to do this by saying, “We want to increase the use of digital tools so that our employees can work more efficiently and effectively. We are currently working on a project allowing employees to enter their hours into a database online.”

In addition, they could also say that they plan on using a system like this because it saves time and money. They may also mention how important it is to keep track of everything happening within their company.

33. What Do You Think Is The Main Benefit Of Digital Tools In The Accounting Department?

If a company has implemented digital tools in its accounting department, it can save time and money.

The chief financial officer can answer this question by stating that they use digital tools to help with accounting processes. They may explain how these tools have made it easier for them to do their job more efficiently. The CFO will also mention how these tools have benefited the company’s bottom line.

For example, they may say, “I use an app called Quicken on my phone to keep track of my expenses, so I don’t have to spend hours at the end of each month entering them into our accounting system.”

34. What Are Your Main Challenges In Implementing New Digital Tools?

The company’s chief financial officer (CFO) may answer the question by saying that their main challenge in implementing new digital tools is the high cost.

For example, when they implement new accounting software, training all employees on how to use it will take time. This will result in training costs and lost productivity as employees learn how to use the new software.

Another challenge is that some employees may not be computer savvy and unable to use the software properly. This can result in errors during payroll processing or other accounting tasks.

The CFO could also mention that they are concerned about security issues with using digital tools. For example, if someone hacks into their accounting system. In that case, they could potentially steal money from them or damage their reputation by leaking sensitive information such as tax returns or trade secrets.

35. Do You Have A Vision For What Your Accounting Department Will Look Like A Few Years From Now? If So, What Is It?

To answer this question, the CFO might talk about how they envision their accounting department being more efficient, cost-effective, and productive. They might also want to talk about how they want their accounting department to be more aligned with their overall business goals.

If the CFO says that they want their accounting department to be more efficient, then it would make sense to talk about how they plan on implementing new technologies or software programs to help make this happen.

For example, if they were talking about implementing an automated invoicing program or an automated billing system such as [software name], they would likely mention how these programs will help them save time and money while making the process easier for them and their clients.

If the CFO says they want their accounting department to be more cost-effective, then discussing how they plan to cut costs without sacrificing quality or service levels would make sense.

For example, if they were talking about reducing overhead expenses such as office space costs by moving into a smaller office space or hiring fewer employees but retaining current employees’ salaries at current levels despite decreased hours worked per week. They could discuss how these plans would help them save money without negatively impacting their business.

36. What Kind Of Results Have You Seen From Using Digital Tools So Far? (In Terms Of Efficiency, Quality, Etc.)

The chief financial officer may say that they have seen an increase in efficiency and quality. They may cite specific statistics such as a decrease in time spent per project or an increase in the number of projects completed monthly.

The chief financial officer may also say that they have seen an increase in quality. They would explain that digital tools allow employees to collaborate on projects from anywhere, so they do not have to work remotely as often. This increases productivity and efficiency by eliminating travel time and allowing for more focused work environments.

Finally, the chief financial officer may say that they have seen an increase in quality through fewer mistakes made during the creation process and fewer errors on final products due to their use of digital tools for tasks like file transfer, sharing files between teams, etc.

37. What Are Some Examples Of Digital Tools You Think Could Be Useful For Our Company? 

The chief financial officer may answer this question with a few different examples.

One example is that digital tools can be used to help increase efficiency and productivity in the workplace. For example, a company could use an app or software to track time spent on tasks and projects so that employees can see what they’re doing and where they’re spending it. This can help them prioritize their work and spend more efficiently.

Another example is that digital tools can help make data easier to understand and interpret, allowing companies to make better decisions based on data-driven analysis.

For example, suppose a company wants to know how many customers visit their website each week. In that case, they could use a tool like Google Analytics to track this information automatically instead of having someone manually collect it every day.

38. How Do You Feel About The Speed At Which Digitalization Is Moving? Why Do You Feel That Way?

Chief financial officers are tasked with managing the company’s finances. They often have a lot of influence on how quickly or slowly a company moves towards digitalization. For example, they can decide whether to buy new software or use existing systems instead of buying new ones.

CFOs also influence how much money is spent on research and development, which can help speed up digitalization. If a company has a large amount of cash, it can invest in research and development and hire more employees specializing in this area.

The chief financial officer’s answer may reflect their feelings about digitalization. Some people may be excited about it because they think it will increase productivity and make their jobs easier (although this isn’t always true).

Others may be wary because they feel like they aren’t ready yet or don’t know enough about how it works. Also, remember that some companies might not want to go through with digitalization until they’re sure it will work out well financially.

39. How Will Digitalization Affect Your Company’s Customers And Their Experience With Your Brand?

Digitalization will affect customers and their experience with the company in various ways. The CFO may say that digitalization will give customers more accessible access to information about their products and help them find the products they need. Digitalization can also help the company identify what customers want so that they can provide better service.

The CFO may say that digitalization affects their company because it allows them to get closer to their customers, which is essential for customer service. Digitalization helps companies connect with their customers on social media platforms like Facebook, Twitter, and Instagram.

It has also made it possible for people from all over the world to communicate with each other quickly and easily through email or chat apps like WhatsApp or Telegram Messenger.

It has changed how we communicate, and we no longer need to wait until tomorrow morning when we see each other at work!

40. What Are Some Potential Risks Associated With Implementing Digitalization Efforts Within A Company Like Yours, And How Can Those Risks Be Mitigated?

The chief financial officer will likely say that many risks are associated with implementing digitalization efforts within a company like theirs. One of those risks is the potential for the company to invest too much in the new technology and not make enough revenue from it to cover its expenses.

Another risk is that if the company does not implement digitalization efforts well, it may lose money on customer service or even lose customers altogether.

The CFO will say that this can be mitigated by having a clear plan for implementing the best digitalization efforts and clear goals for what you want to accomplish with these efforts.

V. Financial Reporting- Strategic Questions To Ask a CFO

41. What Are The Most Important Factors That Influence The Reporting Of Your Financial Statements?

The chief financial officer (CFO) may answer the question by saying that the most important factors influencing financial statement reporting are how they are prepared, the current economic environment, and accounting standards.

The CFO may say that they believe that how the financial statements are prepared is essential because it determines what information is included in the financial statements.

They may also say that accounting standards can influence reporting by requiring different information disclosure types. The CFO may also point out that current economic conditions can affect reporting because they can affect revenues and expenses.

42. What Are The Most Important Business Risks Facing Your Company?

The chief financial officer (CFO) may respond to the question by saying that their most critical business risks are the most likely to affect the company’s finances.

They might also mention that they have implemented controls and measures to mitigate these risks, such as setting up a budget and sticking to it or building up cash reserves in an emergency. Moreover,  the CFO might highlight that they continuously monitor and proactively address the risks.

43. How Can You Use Financial Information To Mitigate Business Risks?

The chief financial officer (CFO) may answer this question by saying that financial information can be used to reduce business risks. The CFO will explain that the financial statements can be used to help assess areas of opportunity and areas where risks may be present.

They could also discuss how financial information can be used to manage cash flow and identify needed resources. Chief Financial Officers could also mention how it can help identify areas where they need to improve their business processes or how they might need to invest in new technology or equipment.

This question is good because it allows both parties to talk about what they do at work.

44. What Internal Controls Do You Have To Ensure That Management’s Financial Reporting Complies With Generally Accepted Accounting Principles?

The chief financial officer may answer this question:

“We have internal controls to ensure that management’s financial reporting complies with generally accepted accounting principles.

First, an internal audit department reviews our company’s financial statements monthly. Qualified accountants work in the internal audit department, where they maintain thorough records of their activities and submit reports at the end of each month.

In addition to reviewing our financial statements, our internal audit department also identifies areas for improvement within the company and provides recommendations for resolving these issues.

We then meet with senior management to discuss our internal audit team recommendations.”

45. What Are Your Disclosure Controls And Procedures For Material Events, As Well As For Significant Transactions?

Disclosure controls and procedures for material events and significant transactions are essential to financial reporting. This ensures that all relevant information is included in an organization’s financial statements, which helps investors make informed decisions about their investments.

The chief financial officer may answer this question by explaining how their organization’s disclosure controls and procedures are established, maintained, and monitored. They could also explain how they ensure that only relevant information is included in an organization’s financial statements.

46. How Do You Reconcile Cash Balances With Bank Statements And Account Balances?

When it comes to reconciling cash balances with bank statements and account balances, the chief financial officer may answer that they:

1. Reconcile cash balances at least twice a month.

2. Check the accuracy of all receipts, disbursements, and bank statements against their internal records.

3. Compare their current bank balance with the previous month’s balance and their total assets and liabilities listed on their financial statements at the end of each fiscal year.
   

47. Are Trends In The Industry Affecting Your Reporting?

The chief financial officer may answer this question by saying that their company has to contend with a few trends. First, the industry is becoming more competitive, meaning more companies compete for the same clients.

This has caused the need for more frequent reporting, making it more difficult for the company to comply with its reporting requirements.

The second trend is that the industry changes due to technological advances and new regulations. These changes have led to a need for more timely and accurate reporting. The third trend is that new competitors are entering the market trying to take business away from our client’s existing clients.

This has caused problems because these new competitors are not as experienced in compliance as our client’s existing clients and therefore do not understand their obligations under the law or how exactly they should meet them.

48. What Information Do You Think Is Most Important To Share With Investors And Other Stakeholders?

The CFO may say that it’s essential because it provides an accurate picture of the company is performance, so investors can make informed decisions about investing in or selling stock.

The CFO may also explain three main parts of a financial statement: assets, liabilities, and equity. Assets are things like cash and inventory; liabilities are things like debt, and equity is what’s left over after subtracting liabilities from assets.

The CFO may also tell you about two other vital pieces of information to share besides financial statements: cash flow statements and income statements.

Cash flow statements show how much money has come into a company over time, how much has gone out, what kinds of changes happened during that period (for example, did they pay down debt?), and whether or not there was enough money left at the end of the period for them to operate without needing additional funding from somewhere else (like through loans).

49. How is the company’s financial reporting different from your competitors?

First, they may explain that they use a system of internal controls that have been refined over time and proven effective. This means they have a system to ensure that all transactions are recorded and accounted for correctly, which helps them avoid errors in their financial statements.

Second, they might claim that they employ a system that is more modern and effective than those of their rivals. This means that their reports reflect current conditions and trends, making them more helpful to investors who want to know what is happening with the company at any given moment.

Last but not least, the CFO might mention that an impartial third party regularly audits the company’s reports so that investors can be sure that everything reported is accurate and reliable.

50. Why Do You Think It Is Important To Issue An Annual Report To Shareholders And Other Stakeholders?

The CFO may say that it is essential to issue an annual report because it provides a snapshot of the company’s financial health at a specific time. Investors can use this information to decide whether to buy or sell stock in the company.

The CFO may also explain that the annual report is crucial because it helps shareholders and other stakeholders understand how the company is performing and its plans. It also allows them to hold the company accountable for its actions and ensure that it follows through on its promises.

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VI. Budgeting And Forecasting- Strategic Questions To Ask a CFO

51. How Often Do You Perform A Budgeting And Forecasting Process?

The chief financial officer may answer the question by saying they perform quarterly budgeting and forecasting. They may also say they perform it monthly or yearly, depending on the company.

They can also say that they always do a budgeting and forecasting process at the beginning of every year and at the end of each quarter if needed.

In addition to this, the chief financial officer may also tell you that when doing a budgeting and forecasting process, they need to have information about sales, costs, and expenses to make sure that they have enough money coming in from sales so that they can cover the cost of their expenses.

52. What Are The Main Elements Of Your Budgeting And Forecasting Process?

The Chief Financial Officer may answer this question by saying that there are several main elements of their budgeting and forecasting process, including the following:

1. Compiling data from various sources. The CFO may describe some of these sources as financial statements, budgets, forecasts, and reports from external agencies.

2. Analyzing the data to determine whether it is accurate and reliable enough for use in the company’s budgeting or forecasting processes. The CFO may also explain how they verify that their data is accurate.

3. Assigning roles and responsibilities to different staff members to complete certain tasks related to budgeting or forecasting processes within departments across all levels of hierarchy within a company (e.g., senior management team members versus managers who work directly with employees on a day-to-day basis).
   

53. How Long Does It Take To Complete Budgeting And Forecasting Process?

The chief financial officer may answer this question by saying that it takes about 6 months to complete the budgeting and forecasting process.

This is because, first, there are many steps involved in this process. The first step is to determine the strategic goals for the following year and align them with the company’s mission statement.

Next, you need to estimate the costs associated with these goals and then estimate revenues associated with those costs. You then compare these estimates with a performance from last year, review any variances between your estimates and actual results, and make adjustments as necessary.

Finally, develop a plan for achieving your goals and implement that plan over time.

This process can take up to six months because there are so many steps involved: determining what needs to be done, estimating costs and revenues, making adjustments if necessary, developing plans, implementing those plans, reviewing progress against those plans monthly or quarterly throughout the year, adjusting plans again if necessary, etcetera (depending on how much time is available).

54. How Do You Keep Track Of The Progress Of The Budgeting And Forecasting Process?

The chief financial officer may answer this question by explaining how they track progress in the budgeting and forecasting process using several methods.

1. First, they may describe how they look at their current budget and compare it to the previous year’s budget to ensure that there aren’t any major differences in spending. 

2. Second, they may explain how the CFO tracks the progress of the budgeting and forecasting process through a combination of reports from different departments to understand better what’s going on in each department.

3. Finally, they could also mention how they use data analysis software to analyze trends in spending over time to make better predictions about future expenditures.
   

55. How Do You Define The Success Of A Project Or Initiative?

The success of a project or initiative is defined by financial reporting. Successful project completion increases revenue, decreases expenses, and/or improves cash flow.

The ability of a project or initiative to boost revenues, cut costs, and/or improve cash flow may be the chief financial officer’s definition of success.

The more successful the project or initiative is at doing this, the more successful it will be in achieving its goals. Moreover,  the CFO could also mention how they use data analysis software to track the progress of a project or initiative so that they can more accurately gauge its success.

56. What Tools Do You Use For Project Management And Collaboration?

Chief financial officers (CFOs) use project management software to track projects, assign tasks and responsibilities, and monitor progress. CFOs also use collaboration tools to facilitate communication between stakeholders on a project.

For example, a CFO may say, “We use Microsoft Project for our project management software, which allows us to track deadlines, assign tasks and responsibilities, and monitor progress.

We also use Slack to communicate with our stakeholders on each project.” These tools help the CFO ensure that projects are completed on time and within budget while facilitating communication between all parties involved.

57. Do You Have Any Tips For Managing Projects And Initiatives In A Large Organization?

In a large organization, project management is crucial to running the business. The chief financial officer (CFO) will have different tips for managing projects and initiatives based on his or her experience working in larger organizations.

The CFO may mention that setting up a project management office (PMO) is one way to manage projects. A PMO helps an organization manage projects more efficiently by creating a framework for managing projects, including procedures for managing budgets and timelines. The PMO can also help ensure that all employees know what they need to do to complete their work on time.

Another tip that the CFO may give is to create transparent processes for handling issues when they arise. For example, suppose a problem with one department’s workload affects another department’s deadlines.

In that case, there should be established processes for how these problems will be addressed and resolved so that everyone knows what to expect when they encounter problems like these.

58. Do You Have Any Tips For Managing Projects And Initiatives In A Small Organization?

The chief financial officer of a small organization may answer this question by saying that he or she has a few tips for managing projects and initiatives in a small organization.

First, the CFO may say that setting clear goals and objectives for each project or initiative is vital. Without these clear goals, it is difficult to know whether or not they have been achieved. The CFO can also say that keeping track of all the resources used on each project or initiative is crucial to avoid unnecessary costs.

For example, if you are working on a project requiring multiple people’s time and energy, ensuring you have enough people on board before starting work is crucial. 

Finally, the CFO can say that he or she believes it is essential to be flexible when working with others in the organization. This means being willing to change your schedule or workflow as necessary when someone else needs help with something.

59. What Types Of Metrics Do You Use To Measure Progress Toward Business Objectives?

The chief financial officer may use a variety of metrics to measure progress toward business objectives. One example is the number of employees who have completed training on a new product. This can be measured by counting the number of people who have gone through training and comparing that number to the total number of employees.

If 1,000 people in the company and 100 have completed training, there is a 10% completion rate. Another example might be sales figures for a particular product or service. If sales are up 10% over last year, 10% more people purchased something from your company than last year—which could mean that customers are responding positively to your products and services!

Another metric is profit margin: how much profit are you making per dollar sold? This figure can tell you if your company is doing well financially or if there’s room for improvement in terms of increasing sales while still maintaining profitability (or vice versa)

60. What Are Some Challenges You’ve Faced While Implementing A Budgeting Or Forecasting Process At Your Company?

Chief financial officers are responsible for helping their companies achieve their goals and often take on the role of helping to set up the financial reporting process. They have to deal with many challenges to keep the reporting process running smoothly, and these challenges can come from different places.

One of the biggest challenges a CFO faces is convincing upper management that budgeting and forecasting processes are essential. While upper management may be able to understand how valuable it would be for them to know what kind of financial results they can expect from their company, they may not understand why this information is important enough to justify spending time and money on implementing these processes.

They may also be skeptical about whether these processes will work as well as advertised or whether some unexpected problems will arise when trying them out.

VII. Risk Management- Strategic Questions To Ask a CFO

61. What Is The Main Purpose Of Risk Management?

The main purpose of risk management is to help the company avoid unnecessary risks and reduce exposure to known risks.

The chief financial officer may answer the question by giving examples of how risk management can help the company avoid unnecessary risks.

For example, if a new product is being developed, the risk management plan would include steps to reduce the possibility that the product will not be ready on time. This could include hiring outside vendors to assist with developing and manufacturing the product or planning for potential delays by building in extra time during development and production.

Another way a CFO might answer this question is by explaining what happens when companies do not have a risk management plan. For example, suppose a company does not have a plan when it experiences an unexpected increase in product demand. In that case, it may not be able to meet the increased demand because it does not have enough resources available at that time.

This could result in lost profits or even bankruptcy for some companies if they are unable to handle large increases in demand on their own without outside assistance from other companies or individuals who might be willing to lend them resources temporarily until their supply chain can catch up with demand levels again by hiring more employees or purchasing more equipment from manufacturers who specialize in producing goods like these types of machines on a large scale.

62. How Do You Define Risk?

The CFO may define risk as “a potential for loss or opportunity.” The chief financial officer may also say that it is a measure of the uncertainty associated with the outcome of an investment, project, or other undertaking. The CFO may define risk as the volatility in a company’s earnings stream.

The CFO may explain this by saying that risk is a factor in determining an appropriate price for equities, bonds, and other securities. A higher level of risk makes it necessary to pay a higher rate of return on any investment to compensate the investor for taking on that additional uncertainty.

63. What Are The Benefits Of Effective Risk Management?

The chief financial officer may answer the question by explaining that effective risk management can help a company avoid or minimize losses, reduce business disruptions, and improve a company’s ability to respond to challenges.

They may also explain that risk management helps ensure new projects align with the company’s core values, goals, and strategies.

64. Who Should Be Involved In Managing Risks?

The chief financial officer (CFO) should be involved in managing risks because they ensure that the company’s finances are in order. The CFO should know the company’s risks and how to mitigate them. They may also be able to answer questions about the overall financial health of the company and its ability to absorb losses from risky ventures.

The CFO should also know what information is available about these risks. For example, suppose no financial reports about past risk management practices are available. In that case, it may not be possible to say much about current practices beyond “this is how we’ve always done things.”

65. Why Is It Important to Understand Your Company’s Value Proposition And Strategy?

A clear understanding of your company’s value proposition and strategy is vital for several reasons.

1. First, it helps you to determine where you want to go with your business in the future. Knowing your goals, you can make informed decisions about how best to achieve them—and if they need to be changed.

2. Second, it ensures that everyone in the company works toward the same goals. Without a clear understanding of your company’s value proposition and strategy, employees may work on projects that don’t help achieve those goals or even work against them.

3. Finally, it allows you to decide which risks are worth taking and which aren’t. If you don’t understand your company’s value proposition and strategy clearly, you may take on too much risk, leading to serious financial problems.
   

66. What Needs To Happen Before You Can Start Managing Risks Effectively?

The CFO is one of the most influential people in a company. They oversee all financial aspects of the company and ensure it’s kept in good order.

They’re also tasked with managing risk, which means they have to know how to identify risks, understand how they affect the business, and find ways to mitigate them.

Risk management starts with identifying where those risks lie. Some risks are internal to the company, for example, if your website crashes due to a software bug or if you lose some data because of a cyber attack. Other risks come from outside sources. For example, a natural disaster or war in your area affects your ability to conduct business as usual.

Once you’ve identified your risks, you can start figuring out what steps to take to mitigate them. You might choose not to hire someone who has had recent legal troubles or avoid doing business with companies that have had problems in the past.

You might also consider looking into insurance policies that will help protect you against certain types of losses if they happen again down the road!

67. How Do You Identify Risks?

The chief financial officer will likely answer this question by saying that risk is any uncertain event or condition that, if it occurs, has a positive or negative impact on the organization. They may also say that identifying risks involves examining how external factors impact the organization’s ability to achieve its goals.

For example, if you’re an e-commerce business, one of your goals may be to increase revenue. You might look at how competitors are doing, what your customers say about your products online, or even what economic conditions exist nationwide.

This is an essential question because understanding your organization’s risks will help you determine how best to mitigate them. This helps avoid being blindsided by events that could have been predicted and prepared for in advance.

68. Why Is It Important To Have A Good Understanding Of Your Company’s External Environment And How It Might Change Over Time?

The chief financial officer’s role is to coordinate and implement the company’s business strategies. They must understand how the external environment affects their company to do this.

The CFO will likely explain that the company needs to be aware of external factors that could impact its business, such as regulation changes or competitors’ actions. The CFO may also explain that being aware of these factors allows them to plan accordingly to mitigate any negative impacts.

Moreover, a good understanding of the external environment can help the company identify opportunities they might not have otherwise known.

This is an essential question because it shows that you’re interested in how the CFO plans to protect and grow the company. It also indicates that you understand the importance of being aware of changes in the external environment and how they might impact the business.

69. How Do You Manage Risks That Occur Outside Of Your Control?

The chief financial officer will likely answer that they have a process for analyzing risks, and then they will use this procedure to manage the risk. This can include things such as setting up an internal risk committee, using a risk management software system or conducting a review of their policies.

The chief financial officer may also mention that they consult with outside experts and industry associations to get advice on mitigating these risks.

For example, suppose a company is exposed to financial losses due to natural disasters or political instability in foreign markets. In that case, it might want to consult an independent expert specializing in those areas.

Finally, the chief financial officer may mention that they share information with relevant parties so that everyone stays informed about what’s happening in the company and can make decisions accordingly.

70. What Role Does Communication Play In Effective Risk Management?

Communication is an integral part of risk management. The CFO may say that communication is more than just internal communication. It’s about communicating with the board and the public so that everyone has a clear understanding of their risk management strategy and why it’s necessary for them to take those steps.

The CFO may also discuss how often they communicate with the board and the public. They might say that they meet with them once a month to discuss any changes or updates to their strategies, and they also have quarterly meetings where they can go over any new issues or problems that have arisen since their last meeting.

The CFO may also talk about how communication helps keep employees informed about what’s happening within their organization, which helps them make better decisions when it comes time for them to do so.

70 Questions To Ask CFO – Conclusion

In conclusion, the 70 questions to ask CFO are designed to help business owners and managers understand their financial situation.

By asking these questions, owners and managers can make informed decisions about their business finances. Moreover,  these questions can also help owners and managers avoid financial problems in the future. Contact FINPRO if you need assistance with the topics mentioned above.

Yossi Elmaliah, Co-Founder of FinPro, House of Finance.

www.finpro.com.cy 

Ye@finpro.com.cy

+357 999 44 061