Your weekly go-to guide to transform your finance function into a strategic powerhouse.
Welcome CFO Techstack Community đ,
In last weekâs newsletter, Tyler Caskey shared the key triggers that signal itâs time to automate your processes.
This week, weâre talking to Kat-Wellum Kent, a fractional CFO and FLAC (Finance Leader Advisory Council - CFO Techstack's representative body for in-house finance teams) member, about marginal gains in finance. We explore how incremental improvements, from automating routine tasks to streamlining month-end, can drive compounding success. Because in finance, just like in elite sports, small wins create big results.
FEATURED ARTICLE
Marginal Gains in Finance: What CFOs Can Learn from British Cycling
Applying the principles of marginal gains to financial process improvements
Sir Dave Brailsford, the mastermind behind British Cyclingâs dominance, introduced a game-changing philosophy: marginal gains. Instead of searching for one massive breakthrough, he focused on making small, incremental improvements across multiple areas, believing they would compound into significant results.
For finance teams, the same principle applies. The pursuit of big, game-changing projects often delays progress, while small optimisationsâfaster month-end reconciliations, smarter reporting workflows, or incremental automationâcreate a compounding effect that delivers real impact.
As Kat Wellum-Kent, a Fractional CFO & FLAC member, puts it:
âEverything they did with the cycling team wasnât big stuff, it was just loads of small stuff, and it made everything better. If you can make small tweaks that make that month-end process slicker, it will all build up.â
Why CFOs Need Marginal Gains Thinking
Many CFOs and finance teams still rely on manual processes and familiar workflows, even when inefficiencies are clear. The fear of disruption, coupled with time constraints, makes it easy to postpone improvements. However, waiting for the âperfect timeâ to implement large-scale changes often means staying stuck in inefficiency.
Instead, CFOs should identify small, high-impact wins that can be implemented with minimal disruption but deliver measurable efficiency gains.
Kat highlights why finance leaders hesitate to make these changes:
âSometimes there's nothing nicer than doing a relatively mind-numbing task just because it's easy and you donât have to think. But the best businesses donât operate like thatâthey focus on efficiencies that give them the biggest bang for their buck.â
Applying Marginal Gains to Finance
Automating Routine Tasks
Instead of overhauling entire finance systems, start by automating one repetitive taskâsuch as intercompany reconciliations or month-end expense categorisation.
Example: A finance team using Xero can utilise tools like Mayday to highlight immediate time savings.
Optimising Month-End Close
If month-end takes five days, find small tweaks that shave off even a few hours.
Example: Introducing AI-driven tools like Xbert for smarter reconciliation or automated alerts for overdue payments can significantly reduce delays.
Reducing Spreadsheet Dependency
While spreadsheets feel familiar, they introduce hidden inefficiencies.
Example: Implementing cloud-based reporting tools can eliminate errors and reduce manual data entry, freeing up time for strategic work.
Refining Forecasting Models
Many businesses make forecasting unnecessarily complex.
Example: Simplifying key forecasting assumptions and automating data inputs can improve accuracy while reducing workload.
Training & Knowledge Sharing
Just like marginal gains in cycling included improving athleteâs sleep, finance teams benefit from better training and process documentation.
Example: A simple workflow guide or shared best practices in a CFO Slack community, like The Stack Exchange, can save hours in onboarding new team members.
Why Marginal Gains Matter More Than Ever
Finance teams are increasingly expected to do more with less. Whether itâs handling growing transaction volumes, managing multi-entity reporting, or ensuring compliance, small efficiency improvements can be the difference between a chaotic finance function and a highly efficient one.
Kat emphasises how incremental changes can add up quickly:
âYou only have to go through a couple of months and then youâve made the time back. Itâs not like a two-week implementationâitâs relatively easy to do, but people often donât prioritise it until they hit a breaking point.â
Instead of waiting for a perfect time to make big changes, CFOs and finance teams should focus on incremental, continuous improvementsâbecause in finance, just like in elite cycling, small gains create big wins.
COMMUNITY INSIGHTS
đ¤ How I stacked it
David Clayton, Group Head of Finance at Inform Ag, shares their tech stack
Inform Ag was founded in 2012 by Jennie Savill as a third-party implementation specialist for both hard and soft technology solutions on farms across Australia. It quickly became clear that the agricultural sector lagged at least a decade behind Australia's industrial sector in adopting and implementing automation and related technologies. Fast forward to today, and Inform Ag has developed a suite of proprietary products designed to bridge these gaps.
David told us, "As is typical in a startup environment, no two days are ever the same. Over the past few years, my role has spanned:
Growing the business from a pure R&D venture into a profitable operation
Securing a Series A capital raise with an ASX-listed investor to drive the next stage of growth and development
Acquiring another business and conducting due diligence on several others
Establishing a joint venture agreement with a major U.S.-based equipment manufacturer
Alongside these milestones, I continue to oversee the core business functionâfinance, legal, and HR."
Here's what David and their team are using:
Mayday for Intercompany Reconciliation and Automated Recharges: Mayday streamlines intercompany reconciliation across the group, significantly reducing the hours spent manually matching transactions between Xero entities. We also rely on Mayday to automate recharges between entities, saving us valuable time that would otherwise be spent on manual processes at month-end.
Employment Hero for Payroll:Employment Hero is an excellent tool for automating payroll and enhancing HR processes across the business. It offers a more advanced payroll function than Xero, including timesheets with clock-in and clock-out functionality for casual staff and contractors. Beyond payroll, it enables us to manage expenses, set staff goals, conduct performance reviews, roll out HR policies and procedures, implement staff incentives, and more.
Fishbowl for Inventory:Fishbowl enables us to track inventory and manufacturing processes at every stage. As a comprehensive warehouse management system, it helps manage processing, receiving, stock locations, product movement, sales, and packing and shipping. It is particularly well-suited for advanced manufacturers.
HubSpot for CRM:HubSpot empowers the commercial team to manage the sales pipeline and customer relationships while providing the management team with valuable insights into sales performance, revenue forecasts, and key KPIs. Its customisation and user-friendly interface engage key stakeholders across the business, ensuring that the insights delivered are both meaningful and actionable.
ApprovalMax for Financial Controls:ApprovalMax enhances authority delegation and financial control through automation. Users can also upload budgets, allowing approvers to easily compare the current position with the budget. However, staff buy-in is essential; without it, the software's effectiveness may be compromised.
Get ready AustraliaâStacked 2025 is coming to Sydney!
The Xerocon for in-house finance teams! Gear up for a massive day, full of insightful speakers, incredible tech exhibitors and unmatched peer to peer networking. This is the event of the year for in-house finance teams!
Expect incredible speakers like:
Donât miss this opportunity to hear from Will - former Xero country manager Australia - and others as they discuss their extraordinary career paths and the lessons theyâve learned along the way in our CFO Inspirational Journeys panel. Gain firsthand insights into how they navigated challenges, seized opportunities, and built impactful careers in the world of finance. This session is designed to motivate, educate, and empower you with actionable strategies and inspiring stories.
Cutting-edge exhibitors including:
dataSights makes Xero reporting simple for finance teams and report developers. From web reports with auto-eliminations and adjustments to automating Excel and Power BI. Effortlessly post data from one Excel sheet to multiple Xero organizations with one click. Sync data into your dedicated data warehouse from any platform that has an API. One of the most comprehensive suites of tools for Xero consolidations.
đď¸Tickets are LIVEâand over 30% are already gone. Early-bird tickets (50% off) are strictly limited, so donât wait!
𧾠This week's top threads, from The Stack Exchange
The Stack Exchange is a Slack forum for connecting with peers, sharing insights, and staying updated on apps and industry eventsâhelping you transform your finance function into a strategic powerhouse.
Here are this week's top 3 discussions from The Stack Exchange:
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