“We filed everything, But we still didn’t see it coming.”
A few years ago, I walked into a board meeting where the CEO’s first words were:
“All our reports are in. We’re compliant. But… our margins have tanked.”
As a CFO, I wasn’t surprised — not because I’d expected the margin drop, but because I’ve seen this pattern before.
Too many businesses confuse compliance with clarity. They assume that because their books are closed on time, taxes are filed, and audits are cleared — everything must be fine.
But being on top of filings doesn’t mean you’re in control of your business.
Let’s explore this trap that many companies fall into — and more importantly, how to break free.
1. Compliance is a checkbox. Insight is a compass.
In my experience as a CFO, the compliance process feels like assembling a puzzle after the picture has already changed.
A mid-sized logistics firm I worked with filed all their returns on time, every quarter. Their finance team was proud of their discipline.
But they were bleeding cash. What was missing?
No one had ever analyzed why fuel expenses rose 14% in Q2 or why debtor days stretched from 42 to 58.
Insight isn’t a report. It’s an interpretation.
Key Takeaways:
- Compliance = What
- Insight = Why it happened and what to do
Action Tip: Add a monthly CFO insights session after every filing cycle. Not just to review, but to connect the dots.
2. The dangerous illusion of “busy but blind”
One of the biggest client transformations I led was for a growing retail chain. Their finance team worked late every month-end. Balance sheets, TDS, GST — you name it, it was submitted.
But when I asked, “Which of your stores have negative contribution margins?” Silence.
Their team was so consumed with doing compliance that they never had time to look beyond.
Are you stuck in the trap?
Here’s a quick self-check:
- ✅ We file tax returns and financials on time
- ❌ We rarely revisit old budgets or compare vs actuals
- ❌ Our finance meetings focus only on what’s “submitted,” not what’s “learned”
Solution: Create an “Insight First” finance culture. Start weekly finance huddles where teams bring one observation, not just reports.
3. Turn accountants into analysts
A friend and fellow CFO at a tech startup once joked,
“Our accountants can file in their sleep — but ask them the CAC trend, and it’s crickets.”
The challenge?
We often train finance teams for accuracy, but not for awareness.
The shift we need
| From | To |
|
Filing returns |
Spotting anomalies |
|
Matching entries |
Asking “why” behind numbers |
|
Preparing ledgers |
Suggesting action items |
Action Plan:
- Pair every junior accountant with a data analyst for 1 hour/week.
- Invest in training: Power BI, Excel dashboards, storytelling with
- Introduce “Insight of the Month” awards — reward
4. Case study: From filing to forecasting
Let me share a real (but anonymized) example.
Company: D2C skincare brand
Problem: Great revenue growth, but sudden cash crunch
Compliance: 100% — all filings, audits, etc. were perfect What we discovered through analysis:
- Their influencer payment cycle was 30 days, but revenue realization from marketplaces took 75 days
- Ads were scaled aggressively — before product feedback loops matured Insight: Their working capital cycle was breaking their cash flow.
- Transformation:
- Shifted ad spend to better-performing SKUs
- Adjusted credit terms with top suppliers
- Built a rolling 12-week cash flow forecast
Within 3 months, they had positive free cash flow — without touching external funding.
5. Insight doesn’t have to be complex — It has to be timely
You don’t need AI dashboards or advanced forecasting to begin. Start simple:
- Top 5 insights from last month’s financials
- One page of narrative — not numbers
- Action plan with owners and deadlines
Here’s a sample framework I use with clients:
Your filing won’t save you — your insight will
Let’s be clear — compliance is critical. You can’t run a business without it.
But compliance is the floor — not the ceiling.
Insight is what drives strategy. It’s what helps your CEO sleep better, your board trust you, and your teams make smarter decisions.
So next time your finance team proudly says,
“We’re all filed and done.”
Ask them —
“Great. Now what did we learn?”
Summary Checklist
✔ Don’t confuse compliance with financial health
✔ Train teams to extract insight, not just file reports
✔ Make space for reflection — not just submission
✔ Reward analysis and storytelling in finance
✔ Build habit-forming insight rituals
Bonus tip from a CFO:
Next time you file a return, pause for 10 minutes.
Ask yourself: “What is this data trying to tell me about the health of my business?” The answers won’t come from forms — they’ll come from curiosity.
