Applying Lessons Learned in 2024 for a Great 2025

We had some ups and downs in 2024 and we’re taking these lessons learned to create a roadmap for an even more successful 2025. For CFOs, this process isn’t just about numbers—it’s about learning from the issues faced, optimizing strategies, and laying a foundation for sustained growth and spending time wisely on things that add value to the organization. 

Here’s a guide to addressing common challenges, adopting solutions, and leveraging frameworks like COSO to turn lessons learned into a record-breaking 2025.

The Problems We Faced in 2024 

Problem 1: Cleaning Up Accounting

One of the most time-consuming issues was dealing with accounting inconsistencies and errors when we inherited a project from another accounting firm.  This delayed financial reporting and strategic decision-making as we spent so much time cleaning up the P&L and balance sheet.

Resolution:

• Clean Chart of Accounts: Start 2025 with a well-organized and clean chart of accounts. Assign every transaction to the correct account to prevent time-consuming forensic accounting.  Put things into the right group numbers so that it’s organized and others can follow the reasoning and process.
• Regular Reconciliation: Implement monthly reconciliation processes to catch discrepancies early.
• Automation Tools: Use accounting software like QuickBooks or NetSuite to streamline processes and ensure accuracy.

Problem 2: Spending Too Much Time on Collections

We spent excessive time chasing late payments, which impacted cash flow and strained resources.

Resolution:

• Payment Upfront: While not all customers may agree to this, strive for upfront payments whenever possible.
• Customer Due Diligence: Invest more time in assessing customer creditworthiness before extending terms. For instance, we have an invoice from Unix Packaging .  Big companies are not eager to pay bills either so sometimes you need to pick up the phone and call them. 
• Automate Collections: Leverage tools like Bill.com or Expensify to automate invoicing and follow-ups for more efficiency.

Problem 3: Underestimating Currency Impact

Large swings in foreign exchange rates significantly impacted profits, especially for international operations.

Resolution:

• Treasury Management: Take a more proactive approach to treasury management to mitigate risks.
• Hedging Strategies: Use financial instruments like currency forward contracts to lock in favorable exchange rates and minimize exposure.
• Regular Forecasting: Update currency forecasts frequently to better anticipate impacts on cash flow and profitability.

Here is our article on: How the Yen Carry Trade Tanked Equity Markets

Leveraging the COSO Framework for Better Performance

To ensure a robust financial strategy in 2025, we recommend using the  COSO Framework—a comprehensive system that helps organizations improve risk management, performance, and adaptability.

 Performance

• Risk Identification: Analyze risks that could disrupt operations, from economic volatility to process inefficiencies.
• Prioritization: Focus resources on the most critical risks to maximize organizational value.
• Response Implementation: Establish actionable plans to mitigate these risks effectively.

Review & Revision

• Continuous Improvement: Regularly evaluate the effectiveness of current processes and refine them based on outcomes.
• Adaptability: Stay agile in responding to changes in regulations, market trends, and customer needs.
• Feedback Loops: Encourage input from teams to identify areas for improvement and innovation.

A Vision for 2025: Turning Lessons into Success

The key to transforming the lessons of 2024 into a prosperous 2025 lies in strategic foresight and operational excellence:

1. Optimize Financial Processes: Streamline accounting, collections, and cash flow management to avoid recurring pitfalls.
2. Enhance Risk Management: Use the COSO Framework to anticipate risks and implement effective solutions.
3. Invest in Treasury Excellence: Prioritize active management of currency and liquidity to protect profits.
4. Celebrate Wins and Communicate Goals: Acknowledge 2024’s achievements, align teams on 2025 objectives, and foster a culture of continuous growth.

By addressing these challenges head-on and adopting a proactive approach to financial leadership, CFOs can ensure 2025 is a year of resilience, growth, and excellence.

💡 What lessons have you learned from 2024, and how are you planning to apply them in the new year? Let’s discuss below!