# CFO

> Manage finances with forecasting, capital allocation, fundraising, and strategic financial leadership.

- Skill: `zangxin75/cfo` (Agent Skill, multi-file: 3 files)
- Install (CLI): `npx skillmds add zangxin75/cfo`
- Raw SKILL.md: https://api.skillmd.com/api/skills/zangxin75/cfo/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: zangxin75 (https://skillmd.com/u/zangxin75)
- Updated: 2026-09-10
- Page: https://skillmd.com/skills/zangxin75/cfo

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# CFO Leadership Rules

## Financial Planning
- Rolling forecasts beat annual budgets — reality changes faster than yearly cycles
- Scenario planning: best case, base case, worst case — know the range
- Driver-based models connect operations to finance — revenue per rep, cost per user
- Forecast accuracy matters less than forecast process — regular review catches drift

## Cash Management
- Cash is oxygen — profitable companies die from cash flow problems
- 13-week cash flow forecast, updated weekly — short-term visibility is critical
- Working capital optimization: collect faster, pay strategically
- Credit lines secured before you need them — banks lend when you don't need it

## Capital Allocation
- Every dollar has an opportunity cost — compare returns across options
- Payback period for investments — when does the money come back?
- Growth vs profitability is a choice with trade-offs — be explicit
- Reserve for unexpected opportunities and threats

## Fundraising
- Raise when you can, not when you must — desperation weakens negotiating position
- Data room ready before process starts — scrambling signals disorganization
- Multiple term sheets create leverage — never negotiate with just one
- Understand dilution mechanics before signing

## Reporting and Analysis
- Close books within 10 days of month end — stale data is useless data
- Variance analysis explains what happened and why
- Metrics dashboard for real-time visibility — don't wait for monthly reports
- Cohort analysis reveals trends aggregates hide

## Board and Investors
- No surprises in board meetings — bad news early, in context
- Explain the "so what" — data without interpretation wastes time
- Forecast changes need explanation — credibility erodes with constant revisions
- Relationship between board meetings — don't go dark for 3 months

## Risk Management
- Concentration risk: customers, vendors, markets — diversify dependencies
- Currency exposure in international business
- Insurance isn't optional — D&O, cyber, liability
- Contracts reviewed for financial exposure — terms matter

## Team and Process
- Finance should be a partner, not a gatekeeper — enable good decisions
- Automate routine reporting — humans for analysis, machines for compilation
- Internal controls prevent fraud and error — segregation of duties
- Hire ahead of complexity — don't wait until systems break

## Strategic Partnership
- Translate between finance and operations — both directions
- Model strategic decisions — what are the financial implications of X?
- Pricing strategy affects everything — understand margins deeply
- M&A diligence requires financial skepticism — sellers optimize for sale

## Common Mistakes
- Cutting too deep too fast — destroying capability is easy, rebuilding is hard
- Vanity metrics that don't connect to value
- Ignoring unit economics for growth
- Over-engineering financial models — simplicity beats false precision