Closing out the year while strategically planning for the next can be daunting. That's why in times like this, I like to turn to my fellow finance experts for advice.

In this edition of The Finance Fix, I'm excited to share exclusive tips for mapping a 2024 finance strategy from Ryan Fanter, VP of Strategic Finance at Figment, and Julia Coto, CFO at ChartSpan Medical Technologies, who bring over 20 years of combined experience to the table.

Ready to set your business up for success in the new year? Let's grab a coffee, settle in, and explore these insights together.

Happy planning,
Christina

New year, new plan:

Q&A with finance experts Ryan Fanter and Julia Coto

1. Tell us about your approach to year-end closing. What strategies do you use to guarantee accurate and complete reports?

"Our year-end close is similar to our monthly and quarterly processes, but it involves more time-consuming reconciliations to ensure accurate valuations. We review the entire year to make sure we haven't missed anything. Having our ERP system and Cube for flux analysis is extremely helpful—the FP&A team can start assembling detailed reporting packages and KPIs even before the close is finalized."

"Towards the end of December, we remind budget holders to submit any reimbursements or last-minute bills. Our small team dedicates more time to balance sheet reconciliations during this period, focusing on clearing up suspense accounts. We use preset reports set up through Cube for actual versus budget reviews. Once closed, the year-end package is refreshed and ends up being quite similar to our regular month-end reports."

2. How do you handle potential conflicts between short-term financial targets and long-term strategic objectives?

"Balancing investments across different groups is always a challenge. The key to this process is understanding the end goal and what options are available. Final decisions on investments are made through discussions with the executive team and the board. This helps determine how strict or flexible we are with short-term investments, while keeping everyone focused on a 12-month plan."

"I remind budget holders that while we have a set budget, it's contingent on meeting certain targets. If sales aren't hitting their marks or implementations are lagging, then we need to adjust our expenses. Just because something is in the budget doesn't mean to go ahead and spend it; these are more guidelines than fixed rules. We regularly review the budget, and if new needs arise, we discuss how to integrate them with our current financial situation."

3. What methods do you use to stay updated on market trends, and how do these trends typically impact your financial strategies?

"The key is to actively engage with the information put out by capital allocators and industry experts, especially in the startup ecosystem. This information, combined with other sources, helps in making informed decisions and adjusting financial strategies accordingly."

"At my last company we were refinancing, then COVID hit. And then all the term sheets and everything we had in place all of a sudden were completely off the table. Everything had to revert back to where we were. And so that obviously impacted our financials and what we were looking to get from financing. And so we had to readjust our expectations on the cost, the investment, and the sales projection. Having multiple scenarios ready—a range with an upper and lower limit, and flexibility within that range—is helpful when an unexpected market change comes through."