How Top CFOs are Delivering Value Added Services Supported by Leading Processes
March 5, 2025
By Brock Davis
How can a mid-market company differentiate itself from its peers and outpace the competition? For many organizations, the answer may lie in the untapped potential of the CFO and finance department. When you analyze top performers in the mid-market, one overall trend becomes clear — they have CFOs who focus their departments on business strategy and value added services.
In this installment of our series 6 Pillars of Top Performing Finance Functions, we will focus on how CFOs at mid-market companies can take example from top performers and implement value added services at their organizations.
Moving From Transaction Processing to VAS
Top-performing CFOs have transformed their organizations. They have significantly reduced the number of full-time equivalents involved in transaction processing areas like record-to-report, procure-to-pay and order-to-cash. By streamlining and automating these processes, organizations have cut the required FTEs to deliver finance services by almost 47%.
Instead of spending time on manual data entry and processing, finance teams now focus on providing analytical insights that drive strategic decisions. They engage in financial modeling, scenario planning and performance analysis, which can add significant value to the business.
Finance as Trusted Advisors
CFOs contribute as strategic partners by collaborating closely with other departments. They build trusted relationships with leaders across the organization, breaking down silos and fostering open communication. By engaging with different business units, CFOs ensure that financial strategies support overall company goals.
Becoming a “trusted partner” involves more than just sharing financial data. It requires actively participating in business discussions, offering solutions and influencing decisions. CFOs who embrace this role help drive innovation, manage risks and identify growth opportunities. They elevate the finance function from that of being a support role, to acting as a central player in the organization’s success.
Examples of Value Added Services Delivered by Top CFOs
Rolling Forecasts and Predictive Analytics
Top-performing CFOs leverage predictive analytics to anticipate future trends and challenges. By analyzing historical data and market indicators, they forecast revenues, expenses and cash flows with greater accuracy. Rolling forecasts are used instead of traditional static budgets, allowing organizations to adjust plans in real time as conditions change. This agility allows businesses to respond quickly to new opportunities or risks.
One example of the power of predictive analytics is Spanish pharmaceutical company Novartis during the COVID-19 pandemic. Traditional models relying on historical data were ineffective for predicting accounts receivable — which accounted for 70% of cash flow — due to unpredictable customer payment behaviors amid the crisis. To address this challenge, they employed machine learning and “anticipated analytics,” incorporating real-time data such as customer order levels, European Union financial support to Spain’s healthcare system and customer credit ratings. This approach allowed them to accurately predict cash flow, reduce accounts receivable and days sales outstanding, negotiate better terms with banks and secure liquidity for 2020 and 2021.
Identifying and Addressing Potential Risks
Top CFOs should actively assess financial and operational risks that could impact the organization. They can conduct risk assessments and scenario analyses to understand potential threats. When risks are identified early, They can then work collaboratively with the other leaders in the organization to develop mitigation strategies to prevent or minimize negative outcomes.
Mergers and Acquisitions Analysis and Support
CFOs support strategic growth by identifying opportunities for mergers, acquisitions or partnerships. They should evaluate how potential deals align with the company’s strategic goals and financial capacity. By managing the financial aspects of transactions, they ensure that deals are structured favorably and contribute to long-term success.
In M&A activities, CFOs play a critical role by conducting thorough financial due diligence. They analyze the target company’s financial statements, assess valuation and identify potential liabilities. Their insights enable the organization to evaluate acquisitions or mergers effectively.
Cost Optimization and Process Improvement
Top CFOs continuously look for ways to reduce costs without compromising quality. They analyze spending patterns, negotiate with suppliers and refine operations. By pinpointing inefficiencies, they help the organization save money and enhance profitability.
CFOs must utilize technology to automate routine tasks and standardize processes. Implementing tools like robotic process automation reduces manual effort and related errors. Standardization ensures consistency across departments and locations, making it easier to compare performance and share best practices.
Business Intelligence and Insights From Financial Data
The best CFOs use advanced data analytics and artificial intelligence to extract meaningful insights from financial data. These technologies enable them to detect patterns, forecast trends and identify anomalies. By leveraging big data, they gain a deeper understanding of the business and its environment.
With enhanced analytics capabilities, CFOs can provide actionable insights to leadership. They should translate complex data into clear reports and recommendations. These insights can then support strategic decisions, such as entering new markets, launching products or adjusting pricing strategies.
Transparent and Timely Reporting
Top finance departments leverage technology to create real-time financial dashboards, allowing stakeholders to access key metrics at any time. This means that leadership and teams can always make decisions based on the most current information. Real-time reporting helps the organization stay agile and responsive.
CFOs must ensure that financial reports are accurate, timely and understandable. They communicate financial performance to the organization’s investors, board members and leaders. Transparency builds trust and confidence among stakeholders.
Leading Sustainability and ESG Initiatives
Top CFOs recognize the value of sustainability and ESG factors for long-term success. CFOs can track and report on sustainability metrics, such as carbon emissions, energy usage and social impact. They should then communicate these metrics to stakeholders, demonstrating the company’s commitment to responsible practices. Transparent reporting on ESG factors can enhance the company’s reputation and appeal to investors.
Advanced Tax Planning and Compliance
Top CFOs develop tax strategies that optimize the company’s tax position while ensuring compliance. They stay informed about tax laws and regulations to take advantage of available incentives and deductions. They also ensure that the company complies with all tax obligations in every jurisdiction where it operates. Effective tax planning can result in significant cost savings and reduce the risk of penalties and legal issues.
Talent Development and Organizational Leadership
Top CFOs invest in developing their finance teams. They encourage a culture of continuous learning within the finance function and provide opportunities for professional development, such as training programs and certifications. A skilled team can provide better support to the leaders and help drive strategic initiatives across the organization.
Capital Raising and Financial Structuring
CFOs play a key role in raising capital for the company. They evaluate financing options and maintain relationships with investors, banks and other financial partners. By communicating the company’s financial health and strategic plans, they can build confidence among stakeholders. Strong relationships can facilitate access to capital and favorable terms.
Robust Control Frameworks
Top CFOs develop strong internal control systems to safeguard assets and ensure accurate financial reporting. They implement policies and procedures that reduce the risk of errors or fraud. By automating controls and regularly monitoring compliance, they minimize the likelihood of control violations and strengthen overall governance.
How Mid-Market CFOs Can Move Toward VAS
Embrace Leading Practices and Process Improvements
CFOs must move away from traditional spreadsheets and adopt specialized financial tools designed for advanced analysis and reporting. Purpose-built software offers greater accuracy, automation and efficiency. These tools can handle complex calculations, integrate data from various sources and reduce the risk of errors inherent in manual spreadsheet processes.
Standardizing reporting processes ensures consistency and comparability across the organization. CFOs should establish common reporting formats and guidelines that all departments follow. Automated reporting systems can generate real-time financial statements, dashboards and key performance indicators without manual intervention.
Robotic process automation (RPA) can automate repetitive, rule-based tasks such as data entry, reconciliations and invoice processing. Implementing RPA frees up staff time for more strategic activities and reduces the risk of errors. RPA can also improve compliance by ensuring that processes are executed consistently according to predefined rules.
With standardized and automated reporting, the finance team can focus on analyzing the results and providing strategic recommendations rather than compiling reports.
Invest in AI and Predictive Analytics
CFOs should embrace advanced technologies like artificial intelligence and machine learning to enhance financial analysis and forecasting. These tools can process large volumes of data quickly, identify patterns and then make predictions about future trends. Predictive analytics can help your organization with scenario planning, risk assessment and strategic decision-making.
By leveraging AI, CFOs can gain deeper insights into the business, uncover hidden opportunities and anticipate potential challenges. These technologies enable more accurate forecasts and support proactive rather than reactive management.
Leverage Cloud-Based Solutions
Cloud-based financial solutions offer scalability, flexibility and accessibility. If they aren’t already there, CFOs should consider migrating to cloud platforms to streamline financial operations and reduce IT infrastructure costs. Cloud systems facilitate real-time collaboration among team members, regardless of their location, and ensure that everyone works with the most up-to-date information.
Upskill Team Members
CFOs should invest in the professional development of their finance teams. This includes training in strategic planning, financial modeling and data analytics. Providing opportunities for learning helps team members acquire the skills needed to analyze complex data, interpret results and make strategic recommendations.
By promoting professional development, CFOs ensure that their team stays current. CFOs can establish mentorship programs, host workshops and provide access to online courses or industry conferences. Regular knowledge-sharing sessions within the team can foster collaboration and innovation.
Foster Collaboration and Communication
Top CFOs are able to break down silos by promoting collaboration between the finance department and other business units. Encouraging cross-functional teams to work on projects ensures that financial considerations are integrated into all aspects of the business.
Joint planning sessions, interdepartmental meetings and collaborative platforms can facilitate communication. When teams understand each other’s perspectives and challenges, they can develop more effective solutions and drive organizational success.
CFOs should lead efforts to involve sales, marketing, operations and other functions in the financial planning process. By involving all departments, CFOs can gather diverse insights, anticipate potential issues and identify opportunities for synergy.
Focus on Strategic Planning and Gap Closure
While analyzing variances between actual and budgeted figures is important, CFOs should place greater emphasis on aligning financial activities with strategic goals. Instead of solely focusing on past performance discrepancies, the finance team should concentrate on how to achieve future targets.
This means focusing on identifying gaps between current performance and strategic objectives and then developing action plans to close those gaps. By prioritizing strategic alignment, CFOs ensure that financial resources are allocated effectively to support long-term success.
Forecast Based on Current Data
Rolling forecasts provide a continuous update of financial projections which extends beyond the traditional fiscal year-end. CFOs should implement rolling forecasts so that forecasting will reflect any internal or market changes right away. Rolling forecasts enable the organization to respond quickly to market shifts.
Scenario planning allows CFOs to model different financial outcomes based on varying assumptions. By simulating scenarios such as market downturns, supply chain disruptions or new product launches, the finance team can assess potential impacts and develop contingency plans.
Implementing these practices helps the organization stay ahead of challenges and capitalize on opportunities. CFOs can provide valuable guidance to leadership by presenting data-driven insights and recommendations based on comprehensive analysis.
Final Thoughts
Embracing Value Added Services (VAS) enables CFOs to become true strategic partners, contributing directly to the company’s success. By focusing on strategic activities, CFOs elevate the role of finance from a support function to a central driver of business value. This focus on VAS enhances operational efficiency and helps the organization outperform other mid-market competitors.
If anything in this article piqued your interest as something you would like to implement at your organization but you aren’t sure where to start, or maybe it only highlighted something you already know is a challenge in your organization, let’s have a conversation about it. I help clients every day outline plans to tackle these areas and would love to be of assistance to you as well. You can complete this form and just indicate “I would like to talk with Brock about his article on the finance team providing value added services”.
Brock is a Director in ContinuServe’s Consulting Practice with more than 13 years of finance, technology, and performance improvement experience. Brock's areas of expertise include operating model uplift, corporate integrations, cost take-out, and business transformations for Private Equity held portfolio companies.
