Your CFO Should Evaluate These 3 Metrics

Your CFO Should Evaluate These 3 Metrics

What Should a CFO Do?

The role of your CFO is evolving. Gone are the days where your CFO was a bean counter that spent the majority of her time on financial reporting. Instead, CFOs are now positioned to, and expected to, provide meaningful insights on your business' most relevant metrics. In this article, we focus on 3 key metrics your CFO should be helping you with.

Your CFO Should Help With People Analytics

The Net Promoter Score ("NPS") is often used by marketers to gauge an existing customer's willingness to refer new customers to your business. It is a widely held assumption that if a current customer is willing to refer new business, that the customer must be satisfied with their experience.

A newer twist on the NPS is to gauge your employees' willingness to refer new employees to your business. CFOs are in a privileged position when it comes to gaining the trust of your leadership and front-line teams. They're also strong at gathering and interpreting data.

Tight labour markets and The Great Resignation have reminded business owners of just how important employee retention and engagement is. Employee NPS is the leading indicator you need.

Your CFO Should Monitor Business Risk

Your firm's break-even point is an often overlooked data point that helps you understand risk. Most accountants have been trained in basic cost accounting; however, advanced analysis requires more business acumen to ensure you're capturing the proper costs and that you're not missing costs.

Your CFO can measure fixed costs on a book value basis or a market value basis. For example, a depreciation charge would be on a book value basis whereas a capital charge would be on a market value basis. A highly capable CFO will help you understand your business' true underlying economics so that you can manage cash flow and attain a higher level of profitability.

Your CFO Should Contribute to Marketing Strategy

Customer LTV is the amount of market value that a customer adds from the time they're onboarded through to the time that the customer relationship is ended. This metric is a commonly analyzed marketing metric; however, CFOs are in a privileged position to analyze the total value given some of the complex principles that apply.

For example, you'd need to know the incremental profit stream added by the client, the frequency of their purchases, the duration or persistence of their purchasing habits and the time value of money to your firm, or the weighted average cost of capital (WACC).

CFOs Need To Count More Than "The Beans"

We've elaborated on three important metrics to your business - Employee Net Promoter Score, Break-Even Point and Customer Lifetime Value. They were selected because they provide analytical insights on your workforce, your finances and your marketing strategy.

BluePrint CPAs offers a unique suite of services to maximize your company's value and profit margins, your growth opportunities and your teams engagement and productivity. Have a look at our ValueMax, GrowMax and CultureMax programs if you want to move the dial on your profit margins and team engagement.

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Rebecca Scott
Web Designer

Rebecca is a Web Designer at BluePrint CPAs. She is a graduate of St. Clair College’s Internet Applications and Web Development Program and has worked as a freelance web designer before joining the BluePrint team.

BluePrint CPAs is a management consultancy that simplifies digital, financial and talent strategies. Our team helps entrepreneurs and their teams grow profitable and modern businesses.

Kit Moore, BluePrint CPAs President & Lead Tax Advisor
Kit Moore, CPA, CA
President & Lead Tax Advisor

Kit Moore, is an entrepreneur that simplifies digital strategy for other business owners. The team at BluePrint CPAs can assist you with web design, development, analytics, management systems and, more importantly, your overall business strategy. The toughest part of digital transformation is re-training your team - and we have pros to help with that as well.

BluePrint CPAs is a management consultancy that simplifies digital, financial and talent strategies. Our team helps entrepreneurs and their teams grow profitable and modern businesses.

Kit Moore, BluePrint CPAs President & Lead Tax Advisor
Kit Moore, CPA, CA
President & Lead Tax Advisor

Kit Moore, is an entrepreneur that simplifies tax and financial strategy for other business owners. The team at BluePrint CPAs can assist you with financial technology, tax strategies, mergers & acquisitions, succession & exit planning and, more importantly, your overall business strategy.

BluePrint CPAs is a management consultancy that simplifies digital, financial and talent strategies. Our team helps entrepreneurs and their teams grow profitable and modern businesses.

Joe Marra, MBA
Senior Associate, Strategy Consulting

Joe is a Senior Associate, Strategy Consulting at BluePrint CPAs. He is a recent graduate of the MBA Program at the Schulich School of Business and has most recently worked for Bayer Inc and the Ford Motor Company of Canada. His experience in marketing, sales, and human resources spans various industries including hospitality, logistics, life sciences and automotive manufacturing. Joe loves working with entrepreneurs to develop their digital strategies and help them grow their business.

BluePrint CPAs is a management consultancy that simplifies digital, financial and talent strategies. Our team helps entrepreneurs and their teams grow profitable and modern businesses.