As we continue through 2023, the role of CFOs has evolved significantly, requiring them to communicate a clear and accurate business picture to the board of directors. The trust and usefulness of CFOs' information in decision-making are paramount for the organization's success and growth. Despite the importance of CFO-to-board communications, McKinsey & Company says it still sees CFOs “who are unpracticed at engaging their board of directors effectively.” Fortunately, CFOs today have a powerful tool at their disposal to revolutionize board engagement: AI-driven cash flow solutions and analysis.

5 Ways AI-Driven Cash Flow Improves CFO-to-Board Communications

1. Focusing on Strategy and Creating Value

As McKinsey aptly asks, “Has there ever been a time when boards of directors were more in need of the sharp, fact-based counsel of a value-savvy CFO?” By harnessing the power of artificial intelligence to identify cash flow patterns and automate finance tasks, CFOs can shift their focus to business strategy. Real-time financial insights and improved working capital management enable CFOs to provide value-driven counsel to the board. In an era where boards require sharp, fact-based advice from CFOs, leveraging AI to free up time for strategic thinking is vital.

2. Anticipating Board Questions

As the CFO presents the board package, directors inevitably ask questions, especially regarding cash flow predictions. CFOs have reported more frequent and urgent questions about where the business will land on cash tomorrow, next week, next month, and next quarter. With access to real-time, on-demand data, CFOs can answer inquiries instantly rather than promising to get back to the board in a few weeks. Better still, AI-driven analysis enables CFOs to address potential questions before they’re asked. Now, that’s how you impress the board.

3. Identifying Trends Faster

AI-powered finance tools excel at detecting data patterns that would take humans considerably longer to uncover. By leveraging these tools, CFOs gain early insights into trends and can develop plans that capitalize on positive patterns or mitigate negative ones. The ability to provide foresight strengthens the bottom line, allowing the board to fulfill its crucial responsibilities more effectively.

4. Providing Financials Sooner

Board members dislike waiting for financial statements, as delays hinder decision-making processes. Traditional manual spreadsheets elongate the production of financial information. However, AI-enabled connected finance tools accelerate this process, ensuring the CFO delivers periodic statements and on-demand financials promptly. This empowers the board to make critical decisions swiftly, even in uncertain times.

5. Facilitating Business Scale

Before undertaking capital investments or acquisitions, board members seek a comprehensive understanding of potential returns. AI-driven platforms enable CFOs to analyze decisions, generate forecast predictions, and produce goal-to-actual reports efficiently. This seamless process empowers the board to assess the impact of such initiatives accurately and supports informed decision-making.

Give the Board What They Want

The role of CFOs in today's business landscape demands effective communication with the board of directors. By embracing AI-driven cash flow solutions, CFOs can surpass board expectations and transform their communication strategies. The evolving CFO role necessitates modern tools, and Tesorio Cash Flow Performance Platform offers a glimpse into the possibilities. Request a demo today to unlock the full potential of AI-driven cash flow to enhance your CFO-to-board communications.