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When Budget Season Collides with Leadership Gaps

AUTHOR

Sabiha McConnell
Sr. Managing Director

Navigating Budget Season in a Time of CFO Volatility

Budget season is always high stakes, but this year the pressure is compounded by unprecedented leadership gaps. Global CFO turnover reached 15.1% in 2024, just below the 2023 peak of 16.2%, marking one of the highest levels in recent history (Russell Reynolds, CFO Dive). Retirement is a major driver, with more than half of departing CFOs either retiring or moving into board positions.

For middle-market organizations, this churn arrives at the worst possible time: just as finance teams are expected to deliver forward-looking budgets, forecasts, and cash plans that inform next year’s strategy. When internal teams are stretched thin or operating without leadership, budgets arrive incomplete, backward-looking, or misaligned with strategic priorities.

The Risks of Going Into Budget Season Understaffed

Without stable financial leadership, companies face a series of cascading risks:

  • Interrupted leadership: A vacant CFO or FP&A role leaves critical decisions delayed or delegated to under-resourced teams.
  • Reactive processes: Finance teams often rely on last year’s numbers instead of building scenario-based, future-oriented plans.
  • Missed opportunities: Limited visibility into cash flow or profitability can cause organizations to underinvest in growth or overextend resources.

Middle-market companies are particularly vulnerable, since their finance functions often run lean and lack the additional resources to absorb disruption.

Resource Augmentation as a Strategic Lever

Organizations avoid these pitfalls by bringing interim finance leaders together with outsourced FP&A services.  Augmenting finance teams with flexible, on-demand expertise allows companies to adapt quickly to evolving business needs without the delays of lengthy recruiting cycles.

Related Read: Talent and Resource Augmentation: A Critical Lever for Value Creation.

Pairing interim financial leadership with outsourced FP&A services provides a unique advantage during budget season:

  • Interim Finance Leaders stabilize the team, align stakeholders, and guide the budgeting process with confidence.
  • Outsourced FP&A teams provide scalable capacity and advanced modeling—delivering robust forecasts, 13-week and 52-week cash flows, and scenario planning that many internal teams struggle to execute on their own.

Together, these solutions shift budgeting from a compliance-driven process into a strategic tool for driving growth and profitability.

Case in Point: From Accounting Chaos to Operational Clarity

Consider the experience of Radius, a fast-growing company that faced significant financial reporting and budgeting challenges as it scaled. With outdated systems and limited internal resources, the finance team struggled to produce timely, accurate reports, let alone strategic forecasts.

E78 engaged to provide streamlined processes, upgraded reporting, and introduced forward-looking cash flow forecasting. By the time budget season arrived, Radius had transitioned from reactive accounting chaos to operational clarity. The leadership team gained the insight needed to allocate resources more effectively and position the business for sustained growth (full case study).

Timing Matters

CFO turnover shows no sign of slowing, and the budgeting calendar won’t wait. According to the Russell Reynolds Global CFO Turnover Index, 2024’s turnover rate was the second-highest on record, reinforcing that leadership volatility is now the norm, not the exception.

Middle-market companies that approach budget season without stable leadership or adequate resourcing risk more than late deliverables. They risk undermining profitability, investor confidence, and long-term growth.

A Smarter Way Forward

Interim leadership and outsourced FP&A aren’t stopgaps; they’re strategic solutions that give finance teams the depth, resilience, and perspective needed to thrive in uncertain times. For organizations entering budget season amid leadership gaps, these capabilities are no longer optional—they’re essential. Contact E78 to explore how interim CFOs, Controllers, and outsourced FP&A services can keep your finance function running at full strength during leadership transition and high-volume seasons.

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Meet the Author

Sabiha McConnell
Sr. Managing Director