First-Time CFO at a PE-Backed Company – Key Areas to Prioritize?

Priorities for a First-Time CFO in a PE-Backed Company

Hello everyone! I’ve been an active member of this group for a while and would really appreciate your insights. My background lies in private equity and operational leadership within sponsor-backed firms. I’ve recently accepted my first role as CFO at a sponsor-backed company. The finance and Accounting team I’ll be overseeing has around six members, including a controller, assistant controller, staff accountant, and heads of accounts payable/receivable, along with support for tax, payroll, and HR.

Since this company is part of a roll-up strategy, I’m familiar with deal work, thanks to my past experiences. However, I must admit that traditional Accounting is not my strongest area, especially when it comes to debits and credits.

As I prepare for my new role, I’d love to gather your thoughts on the key “in-the-weeds” areas I should focus on during my first 30 days. Specifically, I’m interested in any detailed questions, topics, or processes I should discuss with the team concerning:

finance and Accounting processes (such as reporting cadence, reconciliations, month-end close, etc.)
Technology stack and systems (ERP functionalities, payroll, automation, integrations, and any potential gaps)
Accounting procedures (policies, internal controls, revenue recognition, and cash management)
Other critical factors that warrant immediate attention

I would be grateful for any insights or personal stories from those who have navigated similar transitions. Please feel free to comment or reach out to me directly. Thank you for your help!

Congratulations on your new role as CFO! It sounds like an exciting opportunity, especially given your background in private equity and operational leadership. Here are some key areas to prioritize during your first 30 days:

1. finance & Accounting Processes

Reporting Cadence: Review the existing financial reporting schedule. Understand what reports are generated, their timelines, and their audiences. Identify any missed opportunities for earlier insights or adjustments.
Month-End Close: Analyze the current month-end close process. Ensure everyone on the team understands their responsibilities and deadlines, and look for bottlenecks. Consider conducting a root cause analysis on any recurring delays.
Reconciliations: Check the status of bank and intercompany reconciliations. Evaluate how frequently reconciliations are performed and whether the information is being appropriately reviewed and approved.

2. Tech Stack/Systems

ERP Functionality: Assess the current ERP system. Is it meeting all the company’s needs? Identify any pain points or limitations that may hinder efficiency, especially for reporting and forecasting.
Automation & Integrations: Explore existing automation within your processes. Are there manual tasks that could benefit from automation (e.g., invoicing or financial reporting)? Look into integration capabilities between systems to streamline workflows.
Gaps Analysis: Study areas where the current tech stack may be lacking. This could include business intelligence tools for reporting or tools for expense management.

3. Accounting Procedures

Policies and Internal Controls: Review the existing Accounting policies and internal controls to ensure they are aligned with best practices and regulations. Identify any gaps or areas that require strengthening.
Revenue Recognition: If applicable, account for the complexities of revenue recognition, especially in a roll-up scenario. Ensure that the company is compliant with ASC 606 or relevant standards.
Cash Management: Evaluate cash flow management processes. Analyze cash forecasting accuracy and explore strategies for improving working capital.

4. Other Critical Items

Team Dynamics: Spend time with your finance team to build rapport. Understand their perspectives, challenges, and strengths. This will help you identify areas for development and foster a collaborative environment.
Stakeholder Communication: Establish effective communication with key stakeholders, including the board, investors, and operational leaders. Create a plan for how often to communicate and what type of reports or updates they find most valuable.
Culture and Change Management: As you plan improvements, consider the cultural aspect of change within the team. Engage the finance team in discussions about the changes you want to implement to get their buy-in and ensure smoother transitions.

Conclusion

Leading a finance team in a PE-backed environment is both challenging and rewarding. Leveraging your operational background will be a huge asset. Engage deeply with your team, build relationships, and focus on understanding the nuances of their day-to-day activities. Good luck—this is a fantastic opportunity for growth!

One response

APAdmin

12 March 2025 at 5:59 PM
Congratulations on your new role as CFO! It sounds like an exciting opportunity, especially given your background in private equity and operational leadership. Here are some key areas to prioritize during your first 30 days:

1. finance & Accounting Processes
- Reporting Cadence: Review the existing financial reporting schedule. Understand what reports are generated, their timelines, and their audiences. Identify any missed opportunities for earlier insights or adjustments.
- Month-End Close: Analyze the current month-end close process. Ensure everyone on the team understands their responsibilities and deadlines, and look for bottlenecks. Consider conducting a root cause analysis on any recurring delays.
- Reconciliations: Check the status of bank and intercompany reconciliations. Evaluate how frequently reconciliations are performed and whether the information is being appropriately reviewed and approved.
2. Tech Stack/Systems
- ERP Functionality: Assess the current ERP system. Is it meeting all the company’s needs? Identify any pain points or limitations that may hinder efficiency, especially for reporting and forecasting.
- Automation & Integrations: Explore existing automation within your processes. Are there manual tasks that could benefit from automation (e.g., invoicing or financial reporting)? Look into integration capabilities between systems to streamline workflows.
- Gaps Analysis: Study areas where the current tech stack may be lacking. This could include business intelligence tools for reporting or tools for expense management.
3. Accounting Procedures
- Policies and Internal Controls: Review the existing Accounting policies and internal controls to ensure they are aligned with best practices and regulations. Identify any gaps or areas that require strengthening.
- Revenue Recognition: If applicable, account for the complexities of revenue recognition, especially in a roll-up scenario. Ensure that the company is compliant with ASC 606 or relevant standards.
- Cash Management: Evaluate cash flow management processes. Analyze cash forecasting accuracy and explore strategies for improving working capital.
4. Other Critical Items
- Team Dynamics: Spend time with your finance team to build rapport. Understand their perspectives, challenges, and strengths. This will help you identify areas for development and foster a collaborative environment.
- Stakeholder Communication: Establish effective communication with key stakeholders, including the board, investors, and operational leaders. Create a plan for how often to communicate and what type of reports or updates they find most valuable.
- Culture and Change Management: As you plan improvements, consider the cultural aspect of change within the team. Engage the finance team in discussions about the changes you want to implement to get their buy-in and ensure smoother transitions.
Conclusion

Leading a finance team in a PE-backed environment is both challenging and rewarding. Leveraging your operational background will be a huge asset. Engage deeply with your team, build relationships, and focus on understanding the nuances of their day-to-day activities. Good luck—this is a fantastic opportunity for growth!
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