As year-end approaches, CFOs and finance leaders are immersed in familiar demands—closing the books, completing audits, finalizing budgets, and preparing board materials. But the most effective CFOs understand that December is not just about finishing strong. It is a critical moment to reassess assumptions, challenge the status quo, and reposition the finance function for the year ahead.
For middle-market companies, private equity–backed businesses, and public organizations alike, the real question heading into 2026 is this: Is finance merely reporting results, or actively shaping them?
Below are several priorities that will define successful CFOs in 2026—and how finance leaders can act on them.
Rethink Forecasting Before It Fails You
Forecasts often rely on historical patterns that no longer reflect today’s volatility. Shifts in pricing, customer behavior, interest rates, and global markets have exposed how fragile many models can be. CFOs should use year-end planning to pressure-test assumptions rather than roll them forward.
Stress testing scenarios—such as modest declines in customer retention, slower cash conversion, or increased discounting—can reveal vulnerabilities that traditional forecasts miss. These exercises do more than highlight risk; they uncover opportunities to strengthen margins, improve liquidity, and build flexibility into financial plans. In 2026, forecasting must evolve from static prediction to active risk management.
Fix Data Flow, Not Just Costs
Cost optimization remains a priority, but cutting expenses alone will not deliver sustainable results. Many finance teams spend excessive time reconciling data across disconnected systems, limiting their ability to analyze and act.
CFOs should evaluate how efficiently information moves through their enterprise resource planning (ERP), reporting tools, and operational systems. When data is fragmented, decision-making slows and insights lose credibility. For middle-market companies, this often means reassessing technology investments to ensure systems are integrated, not just automated. For PE-backed businesses, clean and connected data is essential for scaling operations and preparing for exits. In 2026, data flow will matter as much as cash flow.
Elevate Finance Into an Internal Advisory Role
The CFO role continues to expand beyond financial oversight. High-performing finance teams are increasingly expected to act as internal consultants—partners who help leaders understand what the numbers mean and what actions to take next.
Year-end is an ideal time to shift expectations. CFOs can challenge finance leaders to deliver targeted business diagnostics that go beyond reporting. These might include identifying pricing leakage, evaluating working capital efficiency, or analyzing the return on significant investments. When finance leads these conversations, it builds trust across the organization and positions the CFO as a strategic voice, not just a financial gatekeeper.
Balance Cost Discipline With Strategic Investment
CFOs entering 2026 face persistent tension between protecting margins and funding growth. Cost optimization remains critical, but indiscriminate cuts can undermine long-term value. The challenge is disciplined prioritization—ensuring resources are aligned with initiatives that improve resilience, scalability, and competitive position.
This also extends to working capital management. Liquidity is increasingly viewed as a primary risk management tool, giving organizations flexibility when markets shift. CFOs who actively manage cash, receivables, and payables will be better positioned to navigate uncertainty.
Approach AI With Purpose and Governance
Artificial intelligence is rapidly reshaping finance, from forecasting to accounts receivable management. Yet many CFOs remain cautious, particularly around trust, data integrity, and cybersecurity. In 2026, the goal is not rapid adoption, but responsible execution.
CFOs should focus on specific AI use cases with clear financial outcomes, while establishing governance frameworks that address data quality, controls, and accountability. AI can enhance decision-making—but only when it is built on reliable data and aligned with business strategy.
Prepare for External Volatility
Geopolitical uncertainty, trade policy shifts, and currency fluctuations continue to complicate financial planning. CFOs must assume volatility is the norm, not the exception.
Flexible budgeting, scenario modeling, and frequent forecast updates will be essential tools in 2026.
The CFO Mandate for 2026
The finance leader of 2026 is no longer defined solely by accuracy and control. Success requires strategic agility, the ability to challenge assumptions, integrate data, guide investment decisions, and help leadership navigate uncertainty with confidence.
The CFO’s role is no longer to report the numbers, but to help write the story they tell. Contact your Stephano Slack tax manager or partner at 610-687-1600 or taxinfo@StephanoSlack.com to discuss strategies that could help you have a more successful 2026.
Author John J. Loughlin, Jr., CPA, Partner, leads the Tax & Advisory Services Department at Stephano Slack. He specializes in tax compliance, planning, and projections. His expertise and personalized approach enable clients to navigate complex tax matters with confidence, ensuring peace of mind and optimal outcomes. John can be contacted at 610-710-4045 or jloughlin@stephanoslack.com.
Disclaimer: This content is for informational purposes only and doesn’t constitute professional advice.
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