When running a business, whether small or medium — you always look at finding ways for the business to run efficiently & effectively while at the same time cut down on costs wherever you can. For all of this to fall in line, you need a strong & experienced finance team which can help evaluate the risks & opportunities for the smooth functioning of your business.
Your current finance team might be doing a great job with tax & compliance issues and with the budgeting as well but they might lack the experience to steer your business in the right decision.
How do you tackle this?
Here is where the CFO services or Virtual CFO services come into picture — people with years of experience and the right skill set help take your business to the next level. Here’s how CFOs will make it easier for you to run your business:
1. Budgeting, Planning & Forecasting
How do you judge if your business is on track? A CFO will be able to help you with planning & forecasting and setting up KPI based industry parameters. These include comprehensive budget estimates, planning, forecasting & financial modeling etc.
2. Cash flow & Revenue management
A C-level financial expert will be able to help you with the cash flow analysis, review of partner relationships, provide an analysis of fees & cost as well as aid with fund raising. To ensure a smooth functioning of the cash management process, the CFO will also help bring in the tools & the latest technologies to aid the process.
3. Mergers & Acquisition assistance
Expanding your business via a merger or acquisition of an another company is a time consuming affair. CFOs have the experience to evaluate companies for both purchase & sale which will help make a better decision and cut down the time. The services that they would be able to help with would be right from evaluation to exit strategy to due diligence to deal structure and finally the negotiation.
4. Process Setup
Establishing a system of checks & balances while setting up your financial processes will go a long way in avoiding roadblocks down the road. A CFO will design and implement set of procedures and processes which will ensure completion of tasks in a timely manner while also reducing the risk of fraud & malpractice.
A CFO can help identify where changes & cost cutting in the system is required & can help increase revenues without jeopardizing the functioning. They will be able to provide you with an objective view of your company’s needs and help with the cost analysis, expense reduction and aid in evaluating alternative scenario modelling.
6. Saves Time
Sometimes having a full time CFO could be more of a liability. The employee could get caught up in internal affairs and lose focus on the growth. Additionally, since the employee is directly involved with the company — this could cloud their judgement. It is vital to have an unbiased opinion, right expertise & a bird’s -eye view to steer your company in the right direction which is something virtual or outsourced CFO services can help with.
A CFO can help in analyzing structural & organizational processes & be able to suggest and prioritize the changes that need to be made in the current system for a better functioning of the business.
Outsourcing your financial requirements is on the rise and it is for the right reasons. It helps establish long term goals with quantifiable & measurable goals which will help keep your company on track and thereby aid in taking it to the next level.
Do you like to understand how we can help your business? Reach out to us.
About Us: CFO Bridge is the largest partner model service provider in India with 200+ clients, 4000 Cr. + turnover managed & 100 Cr. + funds raised.