If you’re serious about running a financially sound business, your CFO must be someone who can give you precise answers without delay. Whether you’re raising capital, planning an acquisition, or just trying to meet payroll, you need more than just reports—you need real answers backed by logic, strategy, and awareness. This article covers ten specific questions every CFO should be able to address to help you lead with confidence.
1. How Are We Performing Financially?
You should expect your CFO to have a clear answer about how your company is doing financially at any given time. That goes beyond looking at total revenue—it includes margins, profitability, and how your current results compare to forecasts and historical trends. These figures need to be available in real-time and connected to business activity, not just pulled from end-of-month reports.
Your CFO should also compare your financial performance against industry peers. Are your margins higher or lower? Are you growing faster than competitors? These insights should help you see where the business stands and where it’s headed. If your CFO can’t walk you through this clearly and without prep time, it’s worth reviewing your reporting cadence and visibility.
2. What’s Our Cash Flow Situation?
Understanding your company’s cash position goes beyond checking the bank balance. Your CFO should give you a full picture of how cash is moving in and out daily, weekly, and monthly. They should highlight which inflows are reliable and which might fluctuate, and what obligations are coming up that require careful planning.
You also need to know how cash flow affects your ability to take action. Can you afford to invest in new hires or new tech? Is there enough cushion for an unexpected dip in revenue? Your CFO should forecast these scenarios well in advance. Waiting until cash is tight puts your business at risk—and your CFO should never let that happen.
3. Are We Meeting Our Financial Goals?
Your company likely has a set of financial goals tied to growth, efficiency, or profitability. Your CFO needs to track these targets constantly and let you know whether the business is on track. That might include things like EBITDA margin, customer acquisition cost, or gross revenue by product line. You shouldn’t be guessing—you should know.
When performance misses the mark, your CFO should be able to explain why and recommend adjustments. Maybe you’ve overspent on marketing, or a key revenue stream didn’t deliver as expected. Whatever the issue, your CFO should bring solutions—not just observations. Their job is to help you course-correct early, not justify the miss after the quarter closes.
4. What Are Our Biggest Financial Risks?
No business is without risk, but yours should be managing risk with foresight—not hindsight. Your CFO should identify the biggest threats to financial stability and quantify their impact. Whether it’s a major client that makes up too much of your revenue, currency fluctuations affecting international contracts, or rising supplier costs, your CFO should have a handle on it.
They should also be working with you on contingency plans. If sales dip 10%, what gets cut? If interest rates rise, how does that change your debt obligations? It’s not enough to know risks exist; your CFO should be working with you to reduce exposure and stay ready for what comes next.
5. How Are We Managing Costs?
You shouldn’t wait for a budget meeting to hear about expenses. Your CFO should be reviewing costs regularly and helping you improve efficiency where it matters most. That includes everything from recurring software charges to contract labor and raw materials. The goal is not to cut blindly but to spend smarter.
When costs spike, your CFO should explain why. If customer support spending is up, is that due to growth or inefficiency? If travel costs jump, was it tied to sales gains or something avoidable? A good CFO helps you spot these trends early so you can make targeted adjustments rather than sweeping, reactive cuts.
6. What’s Our Investment Strategy?
Your business probably makes regular investments—whether that’s in staff, technology, marketing, or acquisitions. Your CFO should have a method for evaluating each opportunity. This includes defining return expectations, setting a timeline for ROI, and flagging any risks tied to the investment.
They should also help prioritize. You may have ten promising ideas, but only budget for three. Your CFO’s analysis should help you choose the right ones. If there’s a reason to hold back capital or wait until next quarter, they should make the case with real numbers. It’s their job to ensure you grow without gambling.
7. How Are We Handling Debt?
Carrying debt can be healthy or harmful depending on how it’s structured. Your CFO should be able to explain how much debt your business has, what it’s costing you, and how it affects cash flow. They should also know when it’s time to refinance or renegotiate terms to improve your position.
Not all debt is created equal. If you’re using it to fund growth that pays for itself, that’s usually fine. But if debt is propping up operating costs, your CFO should raise a flag and propose changes. Their oversight should ensure that borrowing helps your business grow instead of creating a long-term liability.
8. Are We Compliant with Financial Regulations?
Financial compliance isn’t just about avoiding penalties—it’s about keeping your business clean and credible. Your CFO should make sure tax filings are accurate and on time, financial reports are audit-ready, and any required disclosures are properly submitted. They should also stay updated on regulation changes that might affect your reporting requirements.
If your business operates across multiple jurisdictions, compliance can get complicated quickly. Your CFO should have systems in place to monitor filings and prevent errors. You don’t want to discover an issue during an audit. It’s your CFO’s job to ensure everything is in order long before regulators come knocking.
9. How Are We Preparing for the Future?
You shouldn’t be driving blind. Your CFO should work with you to build rolling forecasts and projections that reflect realistic assumptions—not overly optimistic guesses. These forecasts should cover revenue, expenses, staffing, and capital needs. Your CFO should also stress-test them to show how your business performs under different conditions.
Planning for growth is one thing—planning for setbacks is just as important. Your CFO should prepare contingency budgets and advise on cash reserves. They should help you avoid unpleasant surprises, not just react to them. That level of preparation is what separates solid finance leadership from average number crunching.
10. What Financial Metrics Should We Focus On?
Every business has key metrics that indicate financial health. Your CFO should help you identify which ones matter most and track them closely. This could include gross margin, churn rate, recurring revenue, or working capital—whatever truly reflects how your business operates and scales.
They should also provide context. If a metric changes, they should be able to tell you why. It’s not enough to say your cost per customer is up—they need to know whether that’s due to advertising inefficiency or increased onboarding complexity. When your CFO focuses on the right numbers, you can make faster, better decisions.
Top Questions to Ask Your CFO
- How are we performing financially?
- What’s our cash flow?
- Are goals being met?
- What are our risks?
- How are we managing costs?
- What’s our investment strategy?
- How’s our debt?
- Are we compliant?
- Are we future-ready?
- What metrics matter?
In Conclusion
The strength of your company depends on more than just top-line revenue—it hinges on how informed your decisions are. A skilled CFO gives you that clarity, helping you plan smart, avoid surprises, and focus on what works. Ask these ten questions often, and don’t settle for anything less than answers that guide action.
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Brian C Jensen is the CEO of Legacy Global Consulting, Inc., a management consulting firm. With 10+ years of experience, he advises organizations on digital transformation, risk management, and growth strategy—helping clients anticipate market shifts and scale sustainably.