Opinion
As the pandemic eases and the economy recovers, CFOs are beginning to increase spending, but a survey shows that 70% of executives lack confidence in the data underpinning financial forecasts. Blackline CEO Marc Huffman writes that data accuracy has become key to corporate decision-making, recommending that companies prioritize investment in forecasting processes and real-time data to navigate uncertainty.
As carbon emissions rise and calls for climate action intensify, sustainability has become a core corporate issue. However, the lack of unified standards makes tracking related metrics difficult. The author, Anthony Coletta, CFO of SAP North America, points out that CFOs should proactively link finance with sustainability, driving long-term value creation by playing four roles: catalyst, steward, strategist, and operator.
Post-pandemic shifts in media and entertainment consumption patterns have expanded CFO responsibilities from cost control to strategic planning, requiring the use of AI, real-time forecasting, and data analytics to address challenges such as subscription churn and intensifying competition, while seizing new revenue opportunities like AVOD.
Thomas Fox, President and CFO of Malwarebytes, believes that in the face of uncertainty, companies must strike a balance between flexibility and long-term strategy. He proposes four practices: the finance department should become a decision engine, IT needs to be deeply involved in business, business planning processes should be strengthened, and a fixed performance management rhythm should be established. These methods help drive value creation while controlling risk.
Subscription models are growing rapidly, but the abuse of "negative options" has triggered regulatory scrutiny. Companies need to balance commercial interests with consumer rights through transparent communication, easy cancellation processes, and flexible self-service options to achieve long-term retention.
Amid the impact of the pandemic, many enterprises have partnered with technology service providers through flexible pricing models, alleviating short-term financial pressure while ensuring the continuity of transformation projects. This article analyzes the applicable scenarios and considerations of four models—fixed pricing, time and materials, transaction-based pricing, and outcome-based pricing—and points out that these models remain valuable in the post-pandemic era, with enterprises needing to choose carefully based on their own maturity and goals.
Since the U.S. Securities and Exchange Commission (SEC) issued a statement in early April regarding the accounting treatment of warrants issued by Special Purpose Acquisition Companies (SPACs), many companies have been struggling to interpret its implications. The statement indicated that certain provisions in some SPAC warrant agreements may not meet the exception conditions for equity classification, leading to errors in historical financial statements. This article, authored by Matt Smith and Petar Tomov, directors of the Financial Instruments Group at Opportune LLP, provides a detailed analysis of the two core issues the SEC has focused on: warrant indexation and tender offer provisions, and discusses the complexities of subsequent valuation and restatement.
EY-Parthenon estimates that approximately $2.5 trillion in cash is locked up in working capital at companies in Europe and the Americas. This article proposes a three-step strategy: using data analytics to set cash entitlement targets, strengthening accountability through step-by-step metrics, and integrating cash generation into continuous improvement processes, thereby building a true cash culture.
The COVID-19 pandemic has brought long-overdue attention to employee mental health issues. Clinical research shows a strong association between pandemic-related anxiety and behaviors such as hopelessness or substance abuse, which businesses cannot ignore. Russell Guthrie, CFO of the International Federation of Accountants (IFAC), writes that supporting mental health is not only the right thing to do but also beneficial to business operations, and should be regarded as a core part of the finance function's role in promoting sustainable value creation.
Brian Garfield, Managing Director at Lincoln International, analyzes that pandemic-impacted industries such as consumer and industrial sectors are expected to achieve double-digit growth in 2021, but valuation multiples have reached record highs, and CFOs must face rigorous scrutiny over budget feasibility.