Thinking like a CFO gives you a better understanding of your organization's strategic plans, its operational priorities, and the impact of those priorities on your department. Making decisions and managing your day-to-day operations with a CFO mind-set can also help you get your management's support for financial plans, investment proposals, and funding requests. At a more operational level, many of your decisions and managerial activities related to budgeting, managing payables and receivables, incurring incremental costs, and making purchase decisions can benefit from a CFO perspective.
This course presents some examples of how a CFO perspective is applied to many of the activities and financial decisions you make in your area of business on a daily basis. It presents some guidelines for functional managers for creating budgets, and best practices that may contribute to reduced working capital needs. And it teaches you how your request for incurring an incremental cost or making a buy or lease decision could be evaluated from a CFO perspective.Learning Objectives
- Identify guidelines for functional managers when creating budgets
- Classify techniques for effectively managing components of the working capital equation
- Determine if incurring a step cost is possible for a company in a given scenario
- Decide between leasing and purchasing in a given scenario