Recently I created 2 very simple spreadsheets to show and solicit feedback on monthly business results from 2 of the management teams I work with. My accounting team (which for these 2 companies includes the same remote, part-time controller) puts together great, detailed, multi-tab workbooks that are sophisticated closing packages that are perfect for me to dive deep into every detailed account. Since I manage cash tightly, this is crucial as I examine, for example, many of the balance sheet items.
For my audience in build-stage companies, this proved less useful. Typically what you want there is to balance transparency and accountability with a digestible level of information that helps manage more effectively. Until recently in both situations, I think the balance was off.
It turns out that creating a simple spreadsheet is a lot more work than a complicated one. You have to make conscious decisions about what information is truly relevant, how to format it for easy consumption, and how you want the management team to use it to make operational decisions in fluid environments. This is an important part of what a build-stage CFO does and I think I’m improving at this.