Outsourced CFO services in India
CFO Services in India: A company’s financial health is like a stethoscope. By knowing how to read its rhythm through indicators, one will be able to understand when the heart (money) of the company is healthy or in brief moments of distress. For a startup, it’s even more crucial because as an early stage business still in development it can easily go under during its earliest baby steps should money not come into play and play well. As such it’s extremely critical to have dedicated teams like that of accountants and CFOs who are responsible for managing and optimizing finances so as to keep a startup on strong footing moving forward.
However, many entrepreneurs mistakenly believe that they do not need a CFO because they think it is only reserved for high-level corporation executives. Many entrepreneurs have found having a CFO very useful in the past particularly when they’re trying to achieve their business objectives and cannot do it alone. CFOs are hired by more than just large corporations, so this is not a luxury reserved only for those companies with the deepest pockets. A financial planner will help establish a strategy to increase your company’s profits so that with time and the right planning you’ll be able to reach your financial goals sooner rather than later!
Following the same principle, many startups also may not have the means to hire a full-time CFO and yet still don’t want to go without. If a new startup doesn’t have the resources or can’t afford to pay for a full-time CFO, it is common for startups to outsource their accounting functions. The idea of outsourcing is that a company will be able to enjoy all of the benefits that come with having a CFO without actually having to hire one. It is important as an entrepreneur, however, though any investment into outsourced CFO services will certainly pay off in due time. You see, many outsourced CFOs are experts at creating budget reports, monitoring cash flows, and dealing with investors. What more could a startup ask for!
Below are the reasons startups must consider while partnering with accounting outsourcing companies for Cfo Service.
Cash Flow Management
Studies show that approximately six out of ten startups shut down before their product can even launch. One of the key aspects turned out to be the cash flow management of the company. Most often, this is a result of a lack of financial control or supervision by someone who understands how business works. A CFO brings with him or her decade’s worth of experience and expertise when it comes to managing key aspects such as cash flow and financial structures. This can also make all the difference during a highly volatile economic climate, as we have seen first-hand in recent years. An outsourced CFO can help keep you afloat financially and steer you clear from buy-outs which might entirely change the direction in terms of business focus due to reasons outside your control!
Goal Evalualtion
All startups have targets to meet in order to move forward, and these will be set out over the course of the project from Marketing through to the Delivery and Implementation teams. This can be a little stressful at times to ensure everything comes together and is ready on time if not exceeding expectations and providing customers with an excellent experience with your brand! It might be time-consuming, but having regular meetings with all teams throughout this lifecycle will help delineate responsibilities along the way. Also, monthly financial reports, balance sheets, and cash flow statements are important tools that can help you deliver high-quality final products within desirable completion timescales!
Data-Driven Insight
Data is a currency today in business, but it’s also something more than that. It’s information that can be useful for predicting the future and it does affect our businesses every day. Anomalies like trends can happen in data as well, which can even give us a longer window to anticipate or predict major changes in our business. The best way of doing this though is by listening to an expert who not only has an encompassing view of your company’s data, but also the market situation in general and how they might be influenced by each other. That’s why it could mean good business sense to approach an external CFO with both the financial understanding you need and knowledge about how other aspects of your business interact with each other – because sometimes there are factors present that you just weren’t aware of at first sight.
Risk Management
Risk management is something to be aware of because it’s often a part of entrepreneurship. Entrepreneurs go out into the world and have no idea if they will succeed or fail because there is always risk involved with every decision they make. Risk management is essentially identifying what you can do in advance to prevent any financial harm should something “go wrong” so that your company won’t get derailed by unforeseen scenarios.
A CFO is a professional that is dependent upon the success of a company. This is for more than just their financial expertise and business acumen, however. A good CFO will help to plan for all sorts of situations that may arise such as larger payments during global recessions or upper management costs during layovers. There are so many things startups have time constraints with, which makes having to deal with something like finances even more difficult. That’s where companies should invest in having an expert who has dealt with situations like these before help them solidify plans to fall back on because no one can know everything when it comes to running a company – especially if you’re just starting off.
Ecosytem Synergy
An outsourced CFO is a useful choice for new startups and those looking to land their first VC investment, or who are seeking capital from other sources. Having a trusted, experienced professional on your team ensures that you’re giving all of the risks involved in funding equal consideration along with everything else that’s going on. A good CFO is knowledgeable about many areas related to finance – so by bringing one into your project, you will have someone who can help broaden your horizons and inform you of what’s happening with other businesses in other fields as well as within yours specifically. It’s important for entrepreneurs to stay on top of financial news so they can always be armed with information when it comes time to make business decisions in particular, so having a resource like an outsourced CFO is indispensable if you want to get ahead and remain competitive!
Audit & Tax Planning
Investors want to know that the funds they are giving you out of their good graces will be managed in an honest and reliable manner. One way to make them feel at ease is by involving CFOs during this crucial period to offer investors audit reports of the company finances, which are produced with no bias. Taxation is also another area that entrepreneurs can handle on their own, but it becomes difficult if someone doesn’t have a guiding hand to help them understand the complex rules and regulations when – as we know – new laws pop up all the time!
Hiring a full-time CFO can be expensive. That’s why outsourcing your finances is the next best thing for entrepreneurs. First-timers often put their own money on the line when trying to fund their business venture. Remember, working with an outsourced CFO can help alleviate pressure by providing you with a professional and experienced financial mentor who has already been down the road that you are now traveling as you dramatically expand your enterprise.
Growthally Advisors Private Limited is an advisory firm located in Mumbai. If you wish to find out more about business outsourcing services, we welcome you to book a free consultation session with us here.
Growthally Advisors Private Limited / Growth4sme .com /Call on 7506236026 for Free Consultation Session for your business.
Client Feedback about working with Growthally Advisors Pvt Ltd.