A CFO explains why founders should stop looking backward at taxes and start forecasting cash flow 13 weeks ahead. He also describes a DNA model that maps how your key business metrics connect, so you can see what's actually coming.
I've heard you say a common mistake business owners make is driving while looking in the rearview mirror, checking numbers only at tax time. So what's the very first forward-looking financial habit you encourage those founders that you work with to build?
Yeah, I mean, I think it's, you know, job one for our CFOs when they begin is to, you know, like you said, start looking forward. Cash flow forecast is probably the number one thing, so developing a 13-week cash forecast, And then what we call a DNA model. So how does the business operate? What metrics are there and how do they relate to each other so that you can understand the business? Those 2 things I think help the owner kind of get their head up,
