We’re Ellen and Simone. After 36 years in finance, we’re ready to share what textbooks won’t tell you.

💛 Welcome to The CFO Playbook – your practical guide to real-world finance insights. A bi-weekly newsletter we’ll send out every other Thursday. The full read will take approximately 5 minutes. If you’re enjoying the newsletter, we’d greatly appreciate it if you shared it using the “Share the Newsletter” button at the end of this email.

📖 READ OF THE WEEK

In this edition, we cover:

• The Future Finance Team: Key roles and skills for the next 1-3 years.

• Your New Team Superpowers: Must-have skills to develop now.

• Meet the A-Team: Exploring the finance team through personas.

• The Automation Journey: Steps to start tomorrow.

The Finance Revolution: What's Coming in the Next 1-3 Years

If you've read our last newsletter on AI in Finance, you're aware that AI and automation will lead to a shift in the focus of future Finance Teams. In short: Tomorrow's finance teams are strategic superheroes, armed with data-driven insights and a forward-thinking mindset to navigate rapid change.

Heads up, finance pros! We believe this massive shift isn't some distant future - it's knocking on our door. Expect major changes in the next 1-3 years. Here's what's coming, fast:

• Automation Takes Over: AI handles the grunt work, freeing you for strategic tasks.

• Data-Driven Decisions: You're the new crystal ball, providing real-time insights and predictive analytics.

• Strategic Business Partners: You're moving from reporting the past to shaping the future.

Your New Superpowers (Start Developing Now!)

• Strategic thinking Example: Identifying new revenue streams through financial trend analysis

• Business communication Example: Presenting complex financial data in compelling, actionable narratives

• AI and automation literacy Example: Implementing AI-driven forecasting models for improved budgeting

• Data analytics mastery Example: Using predictive analytics to optimize working capital

• Tech savviness (including cybersecurity) Example: Implementing GPT models for automated financial report generation and analysis, while ensuring data security in cloud environments

The near-future finance team? A lean strategy machine. We're talking AI experts, data gurus, and finance folks who speak 'human'. No more invoice processing - it's all about turning data into business gold!

As explained in the AI section below, the next two newsletters will focus solely on practical use cases, showing how you can already simplify your daily work using AI.

Remember: In this brave new world (coming sooner than you think), you don't need to code, but you do need to "operate the automation/AI machine" like a pro. Time to skill up and shine - the clock is ticking!

The Future of Finance Teams

Apple's CFO, Luca Maestri: Less is More in Finance

"We run the finances of Apple with about half the size of some of the companies I have worked for before that were a tenth the size of Apple. If we have the right people, we don't need a lot of them." 

The takeaway? It's all about quality over quantity, and you shouldn't benchmark your team against other companies.

Time to meet your Future Finance A-Team

1. Sofia - The Data Alchemist (FP&AI Extraordinaire) 🔮📈

Meet Sofia your Financial Planning and Analysis superstar (or should we say FP&AI - Financial Planning, Analysis & Impact - Thanks for the cool naming, Julian Lange!). She's not just crunching numbers - she's turning data into gold! 

Sofia's toolkit:

• Data analysis: She sees trends and opportunities others miss

• Finance Translation: Makes complex finance stuff easy to understand for everyone

• Advanced forecasting: Uses (AI) based models to predict what's coming next

• "What if" analysis: Plans for different future scenarios

• Cross-functional collaboration: Works with all departments to make smart money moves

Remember: Sofia doesn’t need to be a coding expert. The big difference from a data analyst? Coding skills aren’t required anymore because tools like ChatGPT can generate the Python code for you. It’s all about financial and commercial know-how!

2. Max - The Ledger Maestro 🧭📊

Max, the new accounting rockstar. Think less number-cruncher, more tech-savvy captain.

Let's face it: The future of accounting is leaner. With AI and automation taking over the grunt work (most of all manual tasks at some point), your accounting team is going to shrink. Depending on your company's size, you might even end up with just one or two accounting pros like Max. But don't worry, this compact team packs a serious impact.

Max's toolkit:

• Automation management: Ensures accuracy and efficiency of automated accounting processes

• Data integrity: Collaborates with Louisa to maintain clean and reliable financial data

• Regulatory expertise: Maintains deep knowledge of GAAP and other financial regulations

• Efficient closing: Streamlines month-end and year-end closing procedures

• Versatile operations: Manages various financial functions including treasury and compliance

Note: In larger companies, specialized roles will still be necessary, particularly in areas like compliance and Tax (e.g. sales tax, VAT, income tax). These complex fields require human judgment and expertise that AI currently cannot replicate. Larger finance departments will continue to have dedicated professionals for these specialized functions.

Human oversight: Max and team remain crucial for final checks and balances. In accounting, 100% accuracy is still the gold standard.

3. Louisa - Your Secret Superheroine 🦸‍♀️💻

Meet Louisa: As Process and Systems Architect, she is the bridge between finance and technology, turning cutting-edge tech into powerful financial tools.

We recommend bringing a Louisa on board full-time when your finance team reaches about 5-6 members, or generally when you're implementing your first ERP or tool stack. This typically happens around the Series B funding stage or when your company hits around 150 employees.

For smaller companies, don't worry! You can still tap into Louisa's expertise by bringing in fractional support on a project basis, especially when you're kicking off automation initiatives. This way, you get the tech know-how when you need it, without the full-time commitment.

Louisa's toolkit:

• AI/Automation implementation: Deploys automated systems to streamline finance processes

• Data architecture: Designs systems for quick, actionable financial insights

• Connect finance tech with other departments

  • Pro tip: For your next tool integration, you could connect the API yourself without waiting for your tech team. You can find instructions for this on Claude, ChatGPT and similar AI platforms!

• Process optimization: Enhances key (financial) processes like revenue-to-cash and procure-to-pay

Tech in action: Louisa's work includes designing and setting up an automated and integrated tech stack from Accounting Systems, ERPs, Subscription Tools to Expense tools, exploring LLM models for finance challenges, automating revenue uploads, and continuously improving financial systems.

Note: While Louisa leads the tech charge, all finance team members will need to upskill in AI to fully leverage these new tools.

4. Alex - The Visionary Performance Architect 🔭💡

In the AI-driven future of finance, the CFO role is evolving into a true strategic powerhouse. 

Meet Alex: The CEO's go-to strategist and the Swiss Army knife of the C-suite.

Alex' toolkit:

• Performance Management: Together with the CEO, the CFO navigates the company through AI disruptions and changing business models while ensuring solid performance

• Advanced Cash flow forecast & management: Keeps cash king with more accurate and faster forecasts

• Strategic capital allocation: Guides big financial decisions - from funding new projects to M&As, and even planning exit strategies

• Team building: Assembles and coaches their dream finance squad, fostering new ideas and skills

CFOs don't just adapt to new tech – they champion it. They're constantly seeking cutting-edge solutions to keep their team ahead of the curve.

Alex invests in their team's growth, providing support and training to build a culture of continuous learning and innovation.

Curious about the modern CFO's role in shaping the future of finance? Check out our LinkedIn carousel for a quick overview, and dive deeper with our dedicated "Read of the Week" in one of the next episodes.

The Automation Journey - Bridging the Gap to Finance 2.0

Let's face it: Many finance teams are still at the starting line of the automation race. But don't worry! You don’t need to climb Mount Everest in one day - think base camp first while painting a clear vision of the view from the peak.

Here's your roadmap to Finance 2.0:

• Prioritize experimentation and up-skilling. Seriously! If you want to succeed in this, you NEED to make time amidst daily operations. Consider this as an investment which will pay off over time!

• Coach your team to focus on concrete use cases and early wins to build momentum before tackling larger goals -> first base camp!

• Develop young talent for emerging roles, e.g. the process & systems Architect.

• Hire for mindset over hard skills.

• Organize cross-team "Show & Tell" sessions, e.g. “AI Fridays”

• Provide clear learning resources for new technologies.

• Align incentives with transformation goals via OKRs and bonuses.

Leaders must walk the talk. Maintain productivity while setting clear objectives and a vision for the team's evolution. By balancing daily operations with strategic development, you'll guide your finance team confidently into the future.

🔮 AI FINANCE CRYSTAL BALL

Navigating the AI Jungle: Your Finance GPS

In a world where AI is evolving rapidly and every tool claims to be "AI-powered," it's tough to keep up. We get it. That's why we're adding an AI section to every Newsletter from now on.

🎥 Sneak Peek: AI in Action - Real-World Finance Use Cases

In the next two newsletters, we'll feature practical AI use cases through a mix of short videos, tutorials and detailed guides, in collaboration with 9x, who are at the forefront of automation and AI for operators.

• AI Basics for Finance Professionals

  • Differences between ChatGPT vs Claude

• Prompting Techniques

• AI-powered analysis of financial statements

• Financial modeling with ChatGPT's interactive charts

• Introduction to Python in financial contexts

and many more…..

💼 JOB SECTION

We’re connecting companies with the right candidates based on key criteria

• Remote work

• Salary expectations from both sides

• Technical skill set match

• Career growth opportunities

Companies: Register here
Applicants: Register here

Let’s find your perfect match!

🕵️‍♀️ EASY QUESTIONS - DIFFICULT ANSWERS

READER QUESTION OF THE WEEK

Question: "Where should the Payroll Team sit in an organization? Currently, the Payroll Team is part of the Finance department, but we're facing challenges with data quality and a disconnect between People and Payroll. In your experience, what is the more common and effective placement for the Payroll Team: Finance or People (HR)?”

Answer: I've worked in companies where payroll was managed by either Finance or HR. From my experience, HR Operations should handle payroll preparation, while Finance manages payments and controls.

Here's why:

• HR Ops is closer to key employee data (new hires, must-have information like tax IDs, social security numbers)

• They can ensure data quality before payroll cut-off dates (typically 15th). With limited processing time, missing information can cause payment delays - a situation no one wants

• Finance handles payments to employees, social security, and wage tax, while checking these against HR planning and Cash forecasts.

A monthly process between HR & Finance to track changes like new hires, leavers, salary changes is crucial for managing the P&L, because what is the largest expense in most companies? Yes, salaries. You need to understand these figures clearly, rather than sitting there wondering why the actual payments don’t match your projections.

Key Takeaways:

• HR Ops should prepare payroll; Finance handles payments and checks.

• Close alignment between HR Ops and Finance is essential.

• Salaries are often the largest cost item in the P&L. Understanding them inside and out is key.

Got a burning question? Fill out this form

UPCOMING READS OF THE WEEK

• AI for Finance Professionals Part I & II - stay tuned for Real-World Finance Use Cases

• Finance Tech Stack 2025

• …and many more

CLOSING REMARKS

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Send your feedback, suggestions, or requests to feature something in future editions to [email protected]. We’d love to include your input.

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The CFO Playbook reflects our personal opinions, not professional advice.