At the start of a new year, your finance and accounting (F&A) department is likely under a microscope. Budgets, forecasts, and strategic plans are top of mind, and internal staff are working hard to finalize year-end financial statements. But this heightened attention often raises an uncomfortable question: What would happen if your CFO suddenly left?
For many organizations, a leadership change in the F&A department would be highly disruptive. However, proactively planning for a CFO’s departure—whether expected or unexpected—can help stabilize your team and reduce key-person risk. It also creates a valuable opportunity to reassess your organization’s financial reporting and strategic planning needs.
Here are four practical steps to consider as you plan for 2026.
During the current CFO’s tenure, your organization’s needs have likely evolved. It's crucial to review the existing job description and assess whether it still reflects the skills and experience your business requires today.
For example, if you’ve recently taken on debt and must comply with lending covenants, make sure those responsibilities are clearly defined. Similarly, if you’ve expanded substantially, you may have outgrown the current role’s scope or structure. You might find you need to replace a bookkeeper with a CPA who has the specific experience and skills to manage a larger, more complex F&A team.
The F&A department is the backbone of your success. It should provide accurate, relevant financial information on a timely basis. To ensure this happens, you need to objectively assess whether reporting delays, recurring errors, or limited financial insight have been holding your business back.
If your organization’s goals demand a higher level of performance, this may signal a need for structural improvements. This could look like enhanced training, bringing on new team members, establishing clearer accountability, or formalizing policies and procedures. Remember, strong internal controls help reduce fraud risk and lessen reliance on any single individual.
Leveraging modern accounting software can help your F&A team operate more efficiently, reducing manual data entry and minimizing the errors that often arise from spreadsheet-driven processes. Well-configured systems can also improve consistency in reporting, strengthen internal controls, and create clearer audit trails.
Automation can free up internal staff to focus on higher-level activities, such as financial analysis, forecasting, and strategic decision-making. As part of your planning, assess whether your current system is up to date, industry-appropriate, and properly configured to support your organization’s size and growth plans. If the system relies heavily on manual workarounds or undocumented processes, it exposes your organization to unnecessary risk during a leadership transition.
Consider whether you’re maximizing the functionality of your current accounting software. Set up a meeting with a vendor rep to discuss what’s working and what isn’t. A worthy provider will address issues, provide training, and offer ongoing customer support. If your vendor isn't stepping up, we can help conduct a comprehensive assessment of the effectiveness of your accounting system.
In-house personnel will need to manage new challenges as your organization grows. For example, if you’re dealing with a complex matter—such as a merger, restructuring, or private equity transaction—your CFO should have sufficient knowledge to support the effort.
Thinking in terms of succession, scalability, and adaptability can help ensure your finance function remains effective over time. Streamlined processes and documented procedures also make transitions smoother when change does occur.
A CFO’s departure doesn’t have to derail your organization’s momentum. With a clear action plan in place, you can turn a potential disruption into a strategic reset. Taking these steps before a transition occurs can help ensure your F&A team remains stable, effective, and aligned with your organization’s goals in 2026 and beyond.
If you need help assessing your team's readiness or optimizing your financial processes, let's talk. Contact SD Mayer & Associates today to learn more.