Waypoints: Ideas and Insights to Navigate Enterprise Complexity

To close out our series, Top Middle Market CFO Challenges for 2017, we see a key concern for CFOs this year is managing financial strategies in light of the potential changes in tax laws. There will certainly be new changes to tax regulations in the coming years. This is welcome news to the business leaders surveyed by CNBC. Of this group, 73.9 percent of U.S.-based CFOs agree that Trump's principal focus should be corporate tax reform. In response, the new Congress and President have made tax reform a key element of their policy agenda. How these changes impact your business and how you capitalize on them will help drive your success in coming years.

As we continue in our series, Top Middle Market CFO Challenges for 2017, the growing threat of cybercrime is becoming top of mind for today’s CFOs. Cyberattacks are on the rise. In 2016, the number of US data breaches increased 40%—an all-time record high according to the Identity Theft Resource Center.

It may be easy to assume that the responsibility for addressing cyber risks rests with your IT department, because after all, these appear to be mostly IT-related risks. However, what may be less obvious are the very significant financial risks involved with a cyber breach. This should be keeping most CFOs up at night. 

Companies with strong working capital have a competitive advantage in the marketplace and are poised to take advantage of growth opportunities—whether that means expanding a product line or acquiring a company. In addition, having significant working and strong liquidity gives CEOs and boards of directors a distinct advantage when it comes to weighing financing options. And, as we pointed out in last week’s blog, CFOs have a more strategic role than ever so optimizing working capital is a key priority.

The CFO role is changing and those that embrace that change will successfully grow their companies. Last week, we identified five challenges we see for CFOs in 2017.  As the first blog in this series, we will help you anticipate and navigate the risks and opportunities the year brings.

I can safely say that, so far, 2017 has been anything but dull. With a new administration in place, our clients and you as well, are likely watching the political and business drama unfold and wondering what effect it will have on your business and how to plan for growth in the future.