CFOs Respond Rapidly to Pandemic

How much damage will the coronavirus outbreak and the accompanying economic downturn do to companies’ sales? In a special CFO Research survey, more than half (53%) of U.S. finance executives responding said they estimated a drop of between 1% and 20% in the first quarter. But about 29% of finance...

By Vincent Ryan • April 13, 2020

Starbucks Shares Fall as Q2 Earnings Halve Amid Pandemic

Starbucks announced Wednesday that its second-quarter earnings could fall by as much as half, as sales have been negatively impacted by the coronavirus pandemic in the United States and China, its two largest markets.Saying it has “greater visibility” regarding the impact of COVID-19 on its busin...

By Lauren Muskett • April 9, 2020

Ironclad Execs Accused of $6M Accounting Fraud

Three former executives of Ironclad Performance have been charged with inflating the work glove maker’s revenues by improperly recognizing more than $6 million in revenue.The U.S. Securities and Exchange Commission said CEO Jeffrey Cordes, CFO William Aisenberg, and Senior VP Thomas Felton used m...

By Matthew Heller • April 9, 2020

McDonald’s Pulls Outlook as Sales Plummet

McDonald’s reported a drop in global same-store sales of 22% for the month of March as the coronavirus pandemic ravaged the global economy.The company withdrew its 2020 outlook from February and said it expects to spend about $1.4 billion on capital expenditures in 2020, down from about $2.4 bill...

By Lauren Muskett • April 8, 2020

Increase DPO, If You Can: Metric of the Month

One month ago, few people could have fully anticipated the scenario in which we now collectively find ourselves: Businesses and borders shuttered throughout the world, economic uncertainty for many workers, and a global economy edging toward recession. Many organizations are understandably concer...

By Perry D. Wiggins • April 1, 2020

Dynamic Cash-Flow Forecasting — A Must-Have in Times of Crisis

In times of uncertainty, the capability of an organization to navigate through significant instability can be the catalyst for long-term financial health. A cash-flow forecast model serves as an early warning sign to a company’s future business health by putting a forensic lens on cash balances u...

By David Lewis • March 31, 2020

Payroll Processors, CPAs Call for Small-Business Support

The American Institute of CPAs (AICPA), along with the International Franchise Association and payroll processing companies Paychex and Intuit, are asking policymakers to help small businesses make payroll during the coronavirus pandemic.“As the federal government focuses its attention on America...

By Lauren Muskett • March 23, 2020

Tax Managers Draw Up Wish List of Crisis Legislation

What was shaping up to be another year of tax gridlock in Washington has, like seemingly everything else, been disrupted by the coronavirus outbreak.Law firm Miller & Chevalier checked in with tax executives at 34 U.S. companies to gauge what legislative and administrative tax proposals being...

By David McCann • March 23, 2020

IASB Floats Rule Changes on Acquisition Disclosures

The International Accounting Standards Board is considering changes to its rules that would require companies to disclose more information about how their acquisitions have performed.In a discussion paper released on Thursday, the IASB said investors want more information on whether takeovers liv...

By Matthew Heller • March 20, 2020

Airlines Seek Sweeping Bailout

The industry group Airlines for America is requesting an aid package from the federal government in the form of loans, grants, and tax relief that could total about $50 billion.The aid request marks a major escalation for the industry as it deals with the economic fallout of the spread of the new...

By Vincent Ryan • March 17, 2020

Credit Quality: Downgrades Keep Coming

The “recession is already here,” blared a Standard & Poor’s press release on Tuesday morning.“The initial data from China suggests that its economy was hit far harder than projected, though a tentative stabilization has begun,” said S&P Global’s chief economist Paul Gruenwald. “Europe and...

By Vincent Ryan • March 17, 2020

Coronavirus: Five Rules for Growing Customer Loyalty

Consider the fate of two companies: Company A and Company B. Both companies are relatively successful, and both are faced with an extended supply disruption. Company A responds to the shortage by trying to maintain its traditional customer management processes with diminishing product availabi...

By Jonathan Byrnes and John Wass • March 16, 2020

Businesses Need Swift, Aggressive Action: U.S. Chamber of Commerce

“No business or family should go bankrupt from the temporary but significant disruption caused by the Coronavirus,” said Tom Donohue, CEO of the U.S. Chamber of Commerce, on Monday morning.In a letter to President Donald Trump and congressional leadership, the U.S. Chamber called on Congress and ...

By Vincent Ryan • March 16, 2020

U.S. Airlines in Strong Position to Withstand Virus

U.S. airlines are strong enough financially to weather at least a temporary drop in demand due to travel restrictions resulting from the coronavirus outbreak, according to Fitch Ratings.The credit rating agency said in a report that “North American carriers should be in a stronger position than a...

By Matthew Heller • March 13, 2020

Democrats Balk at Trump Payroll Tax Proposal

President Donald Trump’s proposal for a payroll-tax cut to juice the economy amid the threat from the coronavirus is running into pushback from Democratic lawmakers.Ron Wyden, the senior Democrat on the Senate Finance Committee, said the proposal Trump floated to Republican lawmakers on Tuesday w...

By Matthew Heller • March 11, 2020

FedEx CFO Alan Graf to Retire After 22 Years

FedEx announced that CFO Alan Graf will retire at the end of the year and be replaced by treasurer Mike Lenz as the company continues its effort to adapt to the rise of e-commerce.Lenz will move into his new role on Sept. 22, with Graf staying on until Dec. 31 as senior adviser to ensure a smooth...

By Matthew Heller • March 10, 2020

The CFO’s Response to Coronavirus Uncertainty

The coronavirus could ...The coronavirus can …The coronavirus may …Could. Can. May.Projections about the spread of the virus (now at the edge of pandemic proportions), about its long-term implications on the global economy and on U.S. markets, are, in a word, uncertain. And if there’s one thing t...

By Vincent Ryan • March 6, 2020

Emergency Coronavirus Bill Passes Final Hurdle

President Donald Trump is expected on Friday to sign into law an $8.3 billion emergency bill to help fight the coronavirus outbreak after it sailed through the U.S. Senate in a rare display of bipartisanship.The 96-1 vote in the Senate to approve the package on Thursday followed a 415-2 vote for ...

By Matthew Heller • March 6, 2020

U.K. Airline Flybe Closes Two Months After Rescue Deal

The U.K. airline Flybe abruptly ceased operations Thursday as the industry grapples with the impacts of the coronavirus.“All Flybe flights are cancelled. Please do not go to the airport as your Flybe flight will not be operating,” the U.K. Civil Aviation Authority said in a statement.The company ...

By Lauren Muskett • March 5, 2020

Three Key Coronavirus-Related Strategic Risks to Consider

The Securities and Exchange Commission on Feb. 19 asked publicly traded companies with operations in China to disclose any coronavirus (COVID-19) threats or risks in their upcoming financial reporting.David A. Brown SEC chairman Jay Clayton acknowledged that the material effects of the coronaviru...

By David McCann • March 4, 2020

Metric of the Month: Detect and Prevent Duplicate or Erroneous Payments

No one likes to be charged twice or overpay for a product or service, and the same is true for organizations. The sinking feeling a consumer might feel when they realize they’ve been charged twice is magnified exponentially for CFOs when they realize that because of an error somewhere in accounts...

By Perry D. Wiggins • March 3, 2020

Coronavirus: Five Things to Think About Before Closing the Books

The international fear created by the outbreak of coronavirus (COVID-19) is palpable. The virus has infected more than 83,000 people in at least 53 countries, leading to worldwide pessimism in global financial markets. Thursday’s 4.4% dip in the S&P 500 was the worst day for American shares s...

By Vincent Ryan • Feb. 28, 2020

Banks’ Expenses Growing, But Not Their Incomes

Commercial banks and savings institutions were under some earnings pressure in the fourth quarter of 2019: interest income fell but personnel costs and other operating expenses rose.The FDIC’s quarterly profile of the performance of 5,177 banks showed that aggregate net income declined almost 7% ...

By Vincent Ryan • Feb. 26, 2020

SmileDirect Shares Plunge on ‘Sour’ Q4 Report

SmileDirectClub shares fell for a second straight day after the teledentistry company posted a larger-than-expected loss and pledged to control its growth to achieve profitability.The stock set a new post-IPO low of $7.92 on Wednesday after plunging 20% in extended trading Tuesday.“The sour Q4 re...

By Matthew Heller • Feb. 26, 2020

Trade Tensions Still Vex Tax Execs

January brought a truce of sorts in the U.S.-China trade war, with the signing of a preliminary agreement between the countries. Nonetheless, international trade tensions and tariffs are expected to have a greater impact on midsize companies’ tax liability this year than any other issue.That’s ac...

By David McCann • Feb. 26, 2020