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Episode 36: How CFOs Know if your Business is Financially Healthy (or not) in 5 Minutes

Episode 36: How CFOs Know if your Business is Financially Healthy (or not) in 5 Minutes


“I hop over to the balance sheet. And I look at what’s going on in their assets and their liabilities and how up-to-date things are. So those are some of the really quick things I look at when I’m checking out some financial statements for a client. And it’s one of the things that you can really quickly gather the health of the business and also to determine how up-to-date are they on their financial statements.”


 – Andrea Jenson


Welcome to a brand new episode of the Cash Flow CFO Podcast. Join me on this solo episode as I discuss how CFOs know if your business is financially healthy (or not) in 5 minutes.

In this episode, we’ll be discussing how CFOs can quickly gauge the financial health of a business. By breaking down financial reports into sections, it becomes much easier to identify key metrics such as payroll expenses and marketing expenses. With this information at hand, CFOs can quickly make informed decisions and take necessary action to ensure the financial stability of their business. We’ll also be discussing the importance of proper organization and how it can save valuable time and resources.

Join us as we uncover the key indicators and strategies that help CFOs determine whether a company is on solid financial ground or facing potential risks.


“If they’re not up to date on their financial statements, then that tells me that they’re not using those as a tool to manage the spending and the growth of the business. So just a quick overview. Those are some of the things that I look at. And I’d love to help you look at your financial statements and make sure that you’re using them as a tool to manage and grow your business and to make spending decisions.”


 – Andrea Jenson


How CFOs Know if your Business is Financially Healthy (or not) in 5 Minutes


Let’s understand the crucial role CFOs play in an organization. CFOs are responsible for overseeing financial operations, providing financial insights, and making informed strategic decisions. They act as a compass, guiding the company toward financial success.

CFOs also rely on benchmarking and comparative analysis to evaluate the company’s financial health in the context of its industry peers. This approach helps them identify areas where the company excels or lags behind, facilitating targeted improvements.

Looking ahead, CFOs use forecasting and scenario planning to anticipate potential financial challenges and opportunities. By creating various financial models, they can strategize and mitigate risks, ensuring the company’s financial resilience.


“So, for example, can you look at your profit and loss statement and within a quick second, tell if one of your revenue streams is profitable, just looking at the margins?

So that’s one thing I look at when I start to dig down into the expenses.”


 – Andrea Jenson


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