The CFO PlayBook for 2023

Kick-off 2023 by evaluating priorities and plans in Q1

External environment

Q1 (Jan – March), the first quarter, will continue to witness the sluggish growth and uncertainties that were prevalent in the second half of 2022. The borrowing rate will remain high, making holding cash and managing working capital critical.

In 2022, we surveyed 150+ finance leaders and found cost optimization to be one of their key priorities. We expect this to continue well into 2023 as inflation and interest rates remain high. Supply chain pressures and high commodity prices due to geo-political tensions further affect business growth.

Here are some strategies CFOs can adopt in Q1 to steer their businesses through the quarter and the rest of the year.

Tips to Ace the Race

Revisit finance plans, budgets, and strategies

Use the start of the year to confirm your financial plans, budgets, and strategies. 2023 is a year where businesses will be cash-strapped, so Gartner advises creating a prioritized list of trade-offs you’ll make in your budget. 

Key factors to consider include:

1. Do not cut tech/automation budgets: Spending on digital transformation (DX) initiatives isn’t going to slow down, according to 70% of CFOs. Hence, ensuring you get maximum returns from DX investments is crucial. Plan to move legacy systems to cloud/SaaS options to save upfront costs. Secure the best terms and prices through skillful negotiation when buying software/IT services.
2. Keep an eye on hiring spend: 47% of CFOs continue to find it difficult to hire and retain talent, with compensation at an all-time high. While many firms are opting for a hiring freeze, this might lead to your competitors securing great talent at a discount. You’ll need to secure good talent by clarifying your value proposition and removing hiring constraints (e.g. location, type of contract).
3. Relook pricing strategy: Given inflation and input price rises (66% of CFOs in our 2022 survey mentioned this as a key challenge), you may need to re-evaluate your product/service pricing to remain competitive without losing margins and market share. 
4. Review contracts and sourcing strategies: Several contracts renew at the beginning of the year. Evaluating the contracts and bargaining for better deals can help. Also, check if some workflows could be more efficient and cost-effective when outsourced. Accordingly, evaluate partners for the same.

Restructure teams to balance costs and improve output

Reorganizing the teams is an effective way to maximize performance and resolve issues such as talent underutilization and quiet quitting. 

Based on the size of your organization, you may want to merge teams or shift resources to critical areas. For example, if you have trouble reaching out to customers for payments, you might want more hands on the collections team.

Check out our finance team structure guide for more tips on reorganization.

Forecast cash flow accurately to ace operations 

Continuous cash forecasting using reliable tools is key for liquidity management and to free cash for emergency needs. Cash forecasting also gives you visibility into your working capital and financing costs in an uncertain economic environment with high-interest rates.

“I think it’s important to forecast cash flows by estimated revenue by product, by customer, by currency, and by breaking down operating costs between fixed and variable and other categories. If there are certain variables, like key input prices that could fluctuate dramatically, having a proper sensitivity analysis can help.” – Dr. Howard Johnson, Managing Director at Duff & Phelps



Not to forget: Present accurate investor reports on time! Q1 is also the time to complete and present the financial numbers of the previous year. Ensure your accounts are audited and the year-end close and annual report preparations are smooth. Check out our Autonomous Accounting solution for a faster financial close!

Navigate the volatile Q2 And shaky markets by optimizing costs

External environment

Various reports suggest Q2 (April–June) 2023 will be the most challenging quarter of the year. Fannie Mae expects housing sales to bottom out in Q2, while Fitch predicts the recession to start in Q2.

The Fed is expected to keep rates high while inflation continues to be a worry, though it will be on a downward trend.

Here are some activities CFOs will focus on in Q2.

Tips to ace the race

Focus on cost optimization initiatives

The pressure to manage costs will continue throughout 2023. With calls to continue digital investments, CFOs will need to creatively look at cost optimization opportunities outside of the IT budget.

“The companies I’m talking to are all focused on cost reductions. “Whether it’s through headcount or other means, that’s what they’re focused on.” – Sean Denham, Audit Growth Leader at Grant Thornton 

Reducing travel expenses and third-party consulting fees, finding cheaper sources of capital, and using newer payment methods/channels can also support cost optimization initiatives.



Collect receivables to avoid working capital pressures

As economic conditions continue to deteriorate, their impact will be felt on your accounts receivable as well. To ensure your credit sales don’t turn into bad debt, you should prioritize collection efforts.

Ensure your team touches base with customers well ahead of the payment due date to confirm receipt of invoices and payment schedule. Where needed, offer to restructure payment methods (part payments, discounts, etc.) to ensure aging receivables don’t turn into bad debt and revenue loss.

Some of the metrics you’d want to keep a watch on include the cost of receivables collection, bad debt, aging buckets, etc.

Re-energize yourself with the green shoots of recovery visible in Q3 2023

External environment

As the year progresses into its second half, the level of optimism also rises. The number of investors who believe the Fed will start cutting interest rates in Q3 is 13%, compared to 2.5% for the first half of the year. It jumps to 36.4% for those who believe the rate cuts will begin in Q4.

Overall, in Q3, while businesses will continue experiencing challenges, it is the best time to rev up your engine and prepare for take-off (bigger opportunities), the signals for which will likely come in the next six months.

Here are some things to check in Q3 to prepare for takeoff.

Tips to ace the race

Watch out for M&A opportunities

While mergers and acquisitions (M&A) slowed down substantially in 2022, they are expected to pick pace in the latter half of 2023. If you are planning to put your business up for acquisition, begin the valuation process and scout potential buyers. 

If you are looking for good deals to buy businesses/business units, this is again the right time as business confidence levels are beginning to strengthen and valuations haven’t skyrocketed to pre-pandemic levels.

| 72% of tech CEO respondents plan to pursue M&A in 2023 (EY)

| Energy, healthcare, and fintech will witness higher M&A (Source)

Keep treading the digital roadmap

Over the past few years and into the future, CFOs will need to fully embrace technology to achieve their goals and keep pace with the competition. The beginning of the second half of the year is a good time to once again re-evaluate tech priorities, the ROI from recent tech investments, and plan for future digital needs and emerging trends.

Based on the performance in the last few quarters and anticipated future needs, you could also look at hiking your tech budgets, as needed.

Track competitors and their moves

While survival was the motto for the first half of 2023, preparing for thriving would be the key focus in the second half. Analyze and track your peers and those of successful enterprises to check the steps they are taking to prepare for takeoff.

Study the investments they are making, the kind of balance sheet and assets they have, and their margins. Compare your position vis-a-vis theirs and discuss with the board and leadership whether there are actions (new product launches, market expansion, etc.) that you’d like to take in the next six months to one year. If so, start preparations for them right away.

Finish the year in style And prepare for 2024

External environment

While 2023 might have begun as a tough year, it is expected to end on a positive note. 

More investors expect the Fed to cut interest rates in Q4 2023, signaling a cooling of inflation rates. M&A is also expected to gather pace, and more companies may begin preparations for an initial public offering (IPO).

CFOs, in the final quarter of the year, also need to prepare and review their balance sheets while planning fresh strategies and roadmaps for 2024.

Here are some to-dos for CFOs in Q4 to end the year on a positive note and look ahead to the following year.

Tips to ace the race

Review earnings & spend, complete audits and compliance reports, and prepare for year-end close

As the financial year draws to a close, you’ll need to gather the numbers and data for the year while starting to plan for the next one (2024). Financial data management software tools can help you avoid last-minute hiccups and errors.

Ensure that you also incorporate ESG (environment, social, and governance) data and other necessary details around cybersecurity, spend distribution, etc. Also, file the necessary compliance documents with the concerned regulatory bodies before the due dates.


It’s again time for fresh goal-setting!

Once you’ve reviewed the year’s performance and understood your strengths, weaknesses, opportunities, and threats (SWOT), it’s time to plan for the next big race in 2024.

Some plans of 2023 may spill over into 2024, while in some cases you may need to course-correct and start afresh. Whatever the case, Q4 is the right time to start planning for the next year. Prepare budgets, forecasts, and funding requirements to plan sales and operations for the next year.

Looking at the future through a crystal ball is challenging. There are chances of events that no one anticipated (like COVID-19!). Hence, being ready to pivot as needed to address market challenges is critical.

But over the years, what we’ve seen is that adoption of automation technologies has remained crucial. CFOs have over the years shed their inhibitions about IT and today whole-heartedly, embrace and advocate for digital initiatives. This will continue through 2023 and beyond.

Some other non-traditional areas that’ll need CFOs’ attention in 2023 and throughout the next few years include ESG, cybersecurity, and talent management. Change management is another aspect that CFOs will need to drive, especially as the finance team embarks on large-scale automation initiatives.