Prime Advantage Blog

CFOs Hold the Recipe for Lucrative Capital Expenditures

Dan Grant on Jun 4, 2015 8:17:00 AM

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Capital expenditures can serve as a boundless avenue to embarking on new projects, expanding operationally or further investing in your organization. Whether your company is struggling for year-over-year growth or riding the wave of several abundant revenue campaigns, outlaying on your physical assets, property or equipment is often essential to elevate your organization to the next level and beyond. Mismanagement of budgets or the improper allocation of these expenditures can doom the very projects they're docketed to fuel. And who better to crunch the numbers line by line and oversee this spending than your company's main money honcho, the CFO.

Often times, organizations leave complete control of these outflows to those running the specific projects. These individuals typically lack the nuanced money-saving acumen that the company's finance head possesses. Keen supervision of these disbursements can pave the way to their success and snowball into liberating finances for other projects. CFOs across the board could do their companies a great service by getting more involved in their firm's capital expenditures, no matter how small or lofty the project.

Read More from McKinsey.com about "Why capital expenditures need more CFO attention"

2015-cfo-survey-report

Topics: Talent and Leadership

Dan Grant

Posted by Dan Grant

Daniel Grant is the President of Prime Advantage, a Chicago-based Group Purchasing Organization for mid-market manufacturers.

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