Liquidity, profit improvement and reliable financial leadership

Establish which figures are reliable

The first step is to review the current financial position and earnings performance: bank balances, outstanding receivables and payables, inventory, orders, ongoing projects and the latest income statement. In discussions with accounting, sales and operations, the focus is on where their assessments differ and which information each function uses to form its view. A receivable may be shown as due in the accounts receivable ledger while sales is still resolving a complaint. A customer order may already be recorded in the system while funding or a binding commitment from the customer remains unresolved.

The interim CFO works through these differences with the people responsible. Together, they record the agreed position, the assumptions behind it and who will resolve each open question by which date. Unverified amounts and unresolved assumptions are clearly identified. Even an incomplete overview can support decisions when its limitations are understood and material risks are identifiable.

Competitive pressure and economic conditions add urgency. Deloitte’s Swiss CFO Survey for spring 2026 describes pressure on margins from the strong franc and energy and purchasing costs. [1] At the start of the assignment, the interim CFO therefore examines how these changes are already affecting orders, inventory and payment dates.

Maintain liquidity with a rolling cash flow forecast

At the start of the assignment, the priority is to secure liquidity. The starting point is reconciled bank balances and available credit facilities. Restricted funds, drawdown conditions and lending requirements are recorded separately. A committed credit facility is available only when its drawdown conditions have been met. Expected receipts and payments for the next 13 weeks are then compared, and the forecast is refreshed weekly.

The cash flow forecast needs supportable assumptions about amounts and payment dates. For larger customer balances, the interim CFO asks about promised payment dates, acceptance of work and disputes. The payment forecast includes payroll, taxes, interest, loan repayments and committed investments alongside supplier invoices, since these obligations often fall due irrespective of current sales. Each week, forecast receipts and payments are compared with actual cash flows. Which payments have moved, which amounts are higher, and how does this change the funding requirement? Where headroom is tight, the critical weeks also require a daily cash forecast.

For delayed receipts, the interim CFO assigns responsibility for resolving the cause and following up payment. Sales handles the customer complaint, the project manager obtains acceptance of the work, and accounting corrects an inaccurate invoice. The interim CFO coordinates these actions and updates the expected payment dates accordingly. The cash forecast also helps the functions coordinate their work. It is reconciled with the longer-term profit, balance sheet and funding plan so that obligations beyond the short-term forecast period remain accounted for.

Reduce cash tied up in receivables and inventory

A review of cash tied up in the business starts with the causes. In this operational view, working capital comprises inventory and trade receivables less trade payables. Higher sales can require additional stock and receivables, absorbing cash. ACCA explains this relationship and the trade-off between liquidity and profitability. [2]

To accelerate collections, the interim CFO reviews the entire process from delivery of goods or services through to payment. The review distinguishes between work not yet invoiced, disputed invoices, incorrect master data and genuine payment difficulties. Each calls for a different response. For inventory, the interim CFO works with purchasing and sales to examine inventory days, confirmed customer demand and order quantities. Slow-moving items require a different assessment from a critical spare part. Inventory reductions therefore also need to take required service levels into account.

A simplified calculation illustrates the scale: with annual credit sales of CHF 36.5 million spread evenly through the year, reducing receivables days by five days releases approximately CHF 500,000. The calculation uses 365 days, excludes VAT and assumes unchanged sales. This is a one-off release during the transition to a lower receivables balance. It is neither additional profit nor an annual recurring cash inflow.

On the supplier side, the review covers agreed terms, early-payment discounts and unnecessarily early payments. Changes are discussed with purchasing and suppliers. A short-term cash benefit loses its value if it causes supply interruptions or higher procurement costs. An October 2026 McKinsey article likewise emphasises that decisions in operating functions materially affect how much working capital the business needs. [3]

Identify and address the causes of margin erosion

Alongside liquidity, the interim CFO examines earning power. Rising sales do not automatically mean higher profit. The analysis shows how much of the profit variance is attributable to sales volumes, selling prices, product mix, purchasing costs and other material cost drivers. Where foreign currencies are involved, operating changes are separated from exchange-rate effects. This helps identify which earnings drivers the team can influence and which planning assumptions need to be updated.

Looking at individual customers, products and projects is particularly useful. Discounts, rebates, freight charges, extra services and rework can materially reduce the margin on an apparently attractive order. The long-established method of analysing net revenue after all deductions and customer-specific costs helps make these differences visible. [4] On this basis, the interim CFO discusses with sales which terms are commercially viable, which additional services should be offered separately and where an adjustment needs to be explained to the customer.

For projects, the review also covers which services are contractually agreed, which changes have been approved and what costs remain to completion. A high reported project margin can be misleading if the estimated costs to completion are too low. For fixed costs, the assessment covers the capacity the future business needs and when an adjustment can affect cash payments.

Actions are assessed by their profit contribution, cash effect and feasibility. An action’s effect on profit needs to be distinguished from its impact on cash flows:

The financial impact of each action needs to be traceable. Savings must not be counted twice across purchasing and margin initiatives. The baseline, calculation, implementation costs and the date from which the action affects profit or cash are documented. Monthly reporting shows the profit contribution realised and the impact already visible in cash flows.

Establish clear reporting and decision-making processes

To review progress regularly, the interim CFO agrees reporting deadlines and meeting dates with the team. The weekly cash review covers available liquidity, overdue receivables and time-critical actions. The monthly performance review focuses on actual results against plan, the updated forecast and decisions that need to be taken. Both meetings use the same reconciled data. Changes since the previous week or month are explained.

The interim CFO agrees a minimum level of available liquidity with management. If the cash forecast indicates a shortfall against that threshold, the corrective actions and the people authorised to decide on them must be clear. Uncommitted funding is presented separately. This makes clear how much of the gap the company can close itself and where a binding external commitment is needed. That distinction is particularly useful when several parties are waiting for one another to decide.

For each important metric, the interim CFO and the team define its meaning, data source, owner and delivery date. The monthly close includes bank and subledger reconciliations and supportable accruals. While differences remain open, each item needs an owner and a deadline so that the next reconciliation discussion can focus on the solution and any decisions still needed to reach it. Provisional closing figures are clearly labelled; subsequent corrections are explained and the respective reporting versions are retained.

Straightforward everyday controls matter just as much. Who can change supplier master data? Who authorises payments? Who covers for the person responsible during an absence? IFAC recommends integrating internal control with governance and risk management. [5] The interim CFO translates that principle into a small set of effective routines that work under deadline pressure and that the existing team can maintain.

Technology supports this work. A dashboard can reveal variances sooner, while automated reconciliations can reduce routine effort. This requires consistent metric definitions and clear approval rules. When using AI-assisted analysis, material statements must be traced back to their underlying data. An eloquent explanation alone is insufficient for a payment or investment decision.

Take responsibility and prepare the handover

An interim CFO needs to uphold priorities even when they are uncomfortable for individual functions. A high-value order may tie up substantial cash and generate only a small contribution because of its terms. Reducing inventory may make sense while also requiring a different purchasing plan. These trade-offs belong with the management team. The interim CFO sets out their financial implications so that a decision can be made with clear accountability.

The same reconciled figures are used with lenders and owners. Assumptions, risks and agreed actions are transparent, and deviations are explained early. Roland Berger’s 2026 restructuring study highlights the importance of credible business and liquidity planning and agreement among stakeholders. [6] Trust grows through supportable information and timely implementation of agreed actions.

Handover starts as these routines are established. The successor in the finance role or the existing team needs a transparent forecast with documented calculations, clear metric definitions and an action list with named owners. This includes running the close and planning process together. After the assignment, the finance function should be able to prepare decisions as reliably as it did during the assignment.

Assessment from an interim CFO’s perspective