How Efficient is Your Back Office?

CFOs are looking to streamline, standardize, and centralize a number of back-office functions, including procurement and invoice processing. Here are five articles that examine improvements in back-office processes.No End to ChangeTo truly transform the back office, companies must change not just...

By CFO Editorial Staff • Aug. 27, 2016

CFO Week in Review

In case you missed them, CFO offers the week’s most read stories.Banking, Tax Regs Eat Into Marijuana ProfitsThe legal cannabis sector is experiencing geometric revenue growth, but finance execs face formidable challenges managing the money.Amid Stiff Challenges, Callaway CFO Calls His Job ‘Best ...

By Kerry Maruna • Aug. 27, 2016

Explore the Trendline➔

Tax policy shifts: What CFOs need to know to stay ahead

Discover how evolving tax policies are creating new opportunities and challenges for CFOs.

By CFO.com staff

Stop the Quarterly Madness!

Over the last few decades, the quarterly earnings call has taken on increasing importance to many public company CFOs and chief executive officers. I’m concerned that the desire to meet these short-term milestones may, in some cases, lead to decisions that adversely affect success over the longer...

By Gregory V. Milano and Allison Cavasino • Aug. 26, 2016

Budgeting Inflexibility Cripples Bottom Line

Many companies aren’t very smart about managing their spending, and a primary contributor to the deficiency is inadequate budgeting practices, according to research and advisory firm CEB.More specifically, companies that use only one or two budgeting models across all business units and functions...

By David McCann • Aug. 25, 2016

Forecast for Finance Forecasting Looks Bright

Facing ever-accelerating technological change and capital markets, and even entire national economies that can seemingly turn on a dime, CFOs are finding that fast financial forecasting updates are a more effective planning tool than annual budgets have long been.Of course, yearly budgets are by ...

By David Katz • Aug. 25, 2016

Sears Loses $395M in Another Grim Quarter

Sears Holdings posted another large loss and a 5.2% decline in same-store sales during a grim second quarter that cast more doubt on its efforts to return to profitability.The retailer reported Thursday that it lost $395 million, or $3.70 a share, for the period ended July 30, compared to profit ...

By Matthew Heller • Aug. 25, 2016

Budgeting for the Next Big Thing

A company may have a chance to buy a piece of prime real estate at a bargain-basement price. Or, suddenly, it finds it can run a manufacturing plant much more cheaply because a new energy technology has become available. Or the CFO senses that interest rates have hit bottom, and the firm has a no...

By David Katz • Aug. 24, 2016

Effective Planning May Require Deep Finance Changes

Now more than ever, companies are asking their CFOs to provide sound advice on strategy: how to attract customers with the right blend of pricing, choice, channel, service, and margin.Operating leaders also want finance’s help with plan execution. They want finance chiefs to forecast and track th...

By Mary Driscoll • Aug. 24, 2016

Why Continuous Improvement Beats Annual Budgeting

In a previous article, I explained the importance of delivering a return on capital that exceeds the weighted average cost of capital (WACC) to create value for shareholders. In 2015, one out of five non-financial companies in the S&P 500 earned a return on capital below their WACC.Think 2015...

By Frank R. Hopson • Aug. 24, 2016

Special Report: Budgeting and Planning’s Changing World

During an interview for the lead article of this CFO Special Report on budgeting, planning, and forecasting, Mike Murray, the CFO of Napa Recycling & Waste Services, spelled out the essence of what appears to be a growing consensus among finance chiefs: “The annual budget is a dead document, ...

By David Katz • Aug. 24, 2016

A Proposal to Empower, Not “Expert-ize,” Boards

Public companies confront wide-ranging and thorny, often technical issues. These range from cyber risk to a wide assortment of other business and enterprise risks, e.g., increased global competition, climate change impacts, pressures from activist shareholders, enhanced bribery and anti-corruptio...

By William P. Barry, Eva Marie Carney, and Jeffrey A. Lehtman • Aug. 23, 2016

Best Buy Shares Jump 19% on Earnings Surprise

Best Buy shares soared on Tuesday after the electronics retailer posted better-than expected comparable store sales and profit for the second quarter, led by a surge in domestic online revenue.With same-store sales declining in the previous two quarters, investors had feared Best Buy’s turnaround...

By Matthew Heller • Aug. 23, 2016

Monitoring the Health of Health Care

Aetna is significantly reducing its participation in the Affordable Care Act (ACA) exchanges, causing many finance chiefs to take a renewed look at health care benefits. Here are five articles that highlight recent trends in health care spending.Aetna Joins Insurer Exodus from ACA ExchangesAetna ...

By CFO Editorial Staff • Aug. 20, 2016

Wal-Mart Posts Another Gain in Comp Sales

Wal-Mart Stores reported same-store sales growth for the eighth quarter in a row and blew past earnings estimates, generating a solid return on its investment in revamping stores and changing the merchandise mix.The world’s biggest retailer earned $3.8 billion in the second quarter, up 8.6% from ...

By Matthew Heller • Aug. 19, 2016

Gap Shares Rise 4% on Turnaround Optimism

Gap Inc.’s sales fell less than expected in the second quarter and earnings also beat estimates, fueling investor optimism that the retailer may be moving toward a profitable turnaround.Gap shares rose nearly 4%, to $26.89, in trading Friday even though the company revised its outlook downward, p...

By Matthew Heller • Aug. 19, 2016

Deere’s Sales Drop But Profit Beats Estimates

Deere & Co.’s sales for the third quarter declined 11% as the farm spending doldrums continued but the agricultural equipment maker still maintained a profit through rigorous cost-cutting.Deere reported Friday that worldwide net sales and revenues fell to $6.724 billion while net income dropp...

By Matthew Heller • Aug. 19, 2016

Cos. Don’t Meld Accounting for Internal Transactions: Poll

Under 10% of nearly 4,000 mostly accounting and finance professionals say their organizations coordinate how their internal transactions are accounted for, according to to a recent Deloitte poll, indicating a lack of holistic, efficient, and well-communicated intercompany accounting frameworks at...

By David Katz • Aug. 18, 2016

Missing Forecasts Is Better Than Making Bad Decisions

It can be tempting for CFOs to overly look to forecasts when pressed to make important financial decisions. After all, projects based on new information can change budgets substantially in real time.Henri Steenkamp However, a CFO should not react to every short-term event or change to the numbers...

By Henri Steenkamp • Aug. 18, 2016

Office Depot Breakup Bites Into Staples Earnings

Staples posted lower-than-expected sales and swung to a loss in a quarter during which it closed stores as part of a new strategic plan.Both Staples and smaller rival Office Depot have been restructuring in the wake of the collapse of their proposed merger. While Office Depot benefited in its sec...

By Matthew Heller • Aug. 18, 2016

New Money Fund Regs May Require Enhanced Disclosures

Corporations that heavily rely on money funds for cash management may need to enhance disclosures and risk management in light of upcoming money fund reform, according to a report from Fitch Ratings.Regulatory changes to money funds coming into effect on October 14 are expected to cause some U.S....

By Vincent Ryan • Aug. 17, 2016

Home Depot Surges to Record Earnings in Q2

Home Depot posted record quarterly sales and profits on Tuesday, riding the tailwind of continuing strength in the U.S. housing market.For the second quarter, the retailer’s profits rose nearly 14% to $2.44 billion, or $1.97 a share, while revenue climbed 6.6% to $26.47 billion. Analysts polled b...

By Matthew Heller • Aug. 16, 2016

AR/VR Market to Grow to $162 Billion in 2020

A new report from International Data Corp. suggests the current craze over Pokémon Go may be only a taste of things to come.The research firm is predicting that worldwide revenues for the augmented reality and virtual reality (AR/VR) market will grow from $5.2 billion in 2016 to more than $162 bi...

By Matthew Heller • Aug. 16, 2016

CFO Week in Review

In case you missed them, CFO offers the week’s most read stories.How Fragmentation is Killing Employee EngagementFragmentation of roles leads to employees’ lack of ownership and a quiet acceptance of things-as-they-are.How the Cloud is Unlocking the Predictive Power of Tax DataSome of the sexier ...

By Kerry Maruna • Aug. 13, 2016

What’s Next for Cloud Computing?

Cloud-based computing is having a significant impact on how finance departments, and companies in general, are leveraging data. The cloud has the power to tap into transaction data to power larger predictive analytics and corporate intelligence initiatives. Here are five articles covering recent ...

By CFO Editorial Staff • Aug. 13, 2016

J.C. Penney Keeps Up Same-Store Sales Growth

J.C. Penney’s second-quarter loss narrowed and same-store sales increased 2.2%, continuing a steady improvement in its performance as its turnaround plan gains traction.The retailer on Friday reported a loss of $56 million, or 18 cents per share, down from $117 million (41 cents a share) in the y...

By Matthew Heller • Aug. 12, 2016