5 Unexpected Challenges New Cfos Face in their First 90 Days and How to Overcome Them
Stepping into the role of a new CFO brings unexpected challenges that can make or break the first 90 days. This article delves into the hidden obstacles faced by financial leaders, drawing from the insights of seasoned experts in the field. From aligning legacy processes to mastering communication, discover the key strategies to navigate this critical period and set the foundation for long-term success.
- Align Legacy Processes with Business Growth
- Create Shared Financial Language Across Teams
- Master Communication to Build Trust
- Address Data Gaps for Informed Decisions
- Prepare for Unexpected Liquidity Challenges
Align Legacy Processes with Business Growth
One unexpected challenge I faced during my first 90 days as CFO was aligning legacy financial processes with rapidly evolving business needs. The company was scaling quickly, but many reporting systems and approval workflows were outdated, leading to delays in decision-making and occasional misalignment between departments.
To overcome this, I prioritized a comprehensive audit of all financial processes, identifying bottlenecks and areas where automation or simplification could have the biggest impact. I implemented streamlined reporting dashboards and introduced a few key automation tools for expense approvals and cash flow tracking. Equally important, I held cross-functional workshops to ensure that finance was fully aligned with operations, sales, and strategy teams, so that everyone understood the new processes and their role in them.
My advice to new CFOs is to expect process friction early and treat it as an opportunity. Focus on quickly understanding where inefficiencies exist, engage other departments collaboratively, and use technology to accelerate decision-making. Preparing for both operational alignment and cultural buy-in will make your first 90 days far more effective and set a foundation for scalable financial management.
Create Shared Financial Language Across Teams
When I was working with different startups and across various teams, one unexpected challenge I often observed in the first 90 days of a CFO stepping in was how differently people understood "the numbers." Sales, product, and finance would each have their own version of revenue, margin, or burn rate, and everyone believed their version was the right one. I recall one situation where two leaders debated runway figures that were both technically correct but based on completely different assumptions, creating unnecessary tension in a strategy meeting.
What worked best in those cases was building a shared financial glossary and aligning everyone around a single source of truth. Once teams had the same definitions and access to consistent data, decision-making became faster and far less contentious. My advice to new CFOs is to prepare for this hidden challenge of translation and alignment. Before diving into advanced models or forecasts, make sure the fundamentals are clearly defined and agreed upon. It's a simple step, but it prevents a lot of confusion and wasted energy later on.
Master Communication to Build Trust
When I first stepped into the role of CFO in my own company, I thought the biggest challenges would be technical—cash flow modeling, reporting, investor relations. I was prepared for spreadsheets and forecasts. What I wasn't prepared for was how much of the role depended on communication and trust.
In those first 90 days, one of the hardest lessons I learned was that numbers don't speak for themselves. I vividly remember presenting an early financial report to my leadership team, packed with detailed analysis I thought would impress. Instead, I was met with blank stares. It wasn't that the numbers weren't accurate—it was that I hadn't translated them into a story the team could understand and act on.
That realization hit me hard. I had always prided myself on being detail-oriented, but in that moment, I realized my job wasn't just to crunch the numbers—it was to connect the dots between the numbers and the business strategy.
To overcome this, I shifted my approach. Instead of leading with charts, I started framing every financial discussion around two questions: "What does this mean for us right now?" and "What do we need to do next?" I also began having more one-on-one conversations with department heads, not just to share insights, but to understand their challenges. That context helped me present financials in a way that resonated, because I could link the numbers directly to their goals.
The advice I'd give new CFOs is this: don't underestimate the human side of the role. Technical skills are a given, but your ability to communicate financial insight in plain language and build trust across the organization is what makes the difference. The first 90 days aren't just about proving you can handle the numbers—they're about proving you can be a partner in decision-making.
For me, that was the unexpected challenge, but also the most valuable growth point. Once I embraced it, the role felt less like managing finances and more like shaping the future of the business.
Address Data Gaps for Informed Decisions
One unexpected challenge I faced during my first 90 days as a CFO was uncovering significant gaps in the accuracy and availability of financial data. This issue wasn't obvious on the surface but became clear as I dug into reporting and cash flow patterns. These data gaps hindered timely decision-making and risk management. To overcome this, I prioritized implementing more reliable financial systems and processes, strengthening controls, and improving data transparency across departments. I also focused heavily on building trust through open communication with stakeholders to align on financial realities and priorities.
My advice to new CFOs is to invest time early in thoroughly understanding data quality and company culture. Don't rush into changes without this foundation, and proactively build relationships that facilitate honesty and collaboration. This groundwork is essential for long-term success.
Prepare for Unexpected Liquidity Challenges
One unexpected challenge I faced in my first 90 days was realizing how quickly liquidity can tighten when multiple large loans fund at the same time. We had several bridge loans, each over $5M, close within days of each other while our warehouse lines were already stretched. I had to move fast, negotiating an emergency credit facility while also building out better daily cash flow forecasting to avoid repeat surprises. Looking back, strengthening short-term liquidity planning early would have saved us a few frantic days. My advice for new CFOs is simple: don't just rely on standard models—stress test your cash flow for the worst-case timing overlaps and have backup funding options pre-positioned.
