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CA SANDEEP KHANDELWAL
Today’s Chief Financial Officers (CFOs) are under more pressure than ever. Accounting scandals, financial restatements and increase investor activism have put CFO’s and finance organizations under the telescope. At the same time, CFO’s face never – ending pressure to cut costs, grow revenue and tighten controls – while assuming unprecedented personal risk for their company’s mistakes. Moreover, it is challenging being a CFO these days. Complicated decisions have to be made on many fronts, and knowing exactly how to proceed at any given time is harder than it looks. A smart move for one company could be unreasonable for another – and understanding which way to turn requires experience and insight.
In general, the shared CFO also known as virtual CFO and fractional CFO can address most of the aforesaid challenges by playing a critical role in helping business of small and medium sizes including startups to manage their finances, make strategic decisions, and achieve their growth objectives. Shared CFO services can benefit organizations in several ways, including:
- Cost savings: By sharing the costs of a CFO and accounting team with other organizations, clients can save on the cost of hiring and maintaining a full-time CFO and accounting team.
- Access to expertise: Shared CFO services providers typically employ experienced financial professionals who have worked in a variety of industries and can offer their expertise to clients.
- Flexibility: Shared CFO services providers can provide financial management services on a part-time or as-needed basis, allowing clients to scale their financial management resources up or down as their needs change.
- Enhanced financial reporting: Shared CFO services providers can provide clients with access to advanced financial reporting tools and technologies that might be too expensive or complex for smaller organizations to implement on their own.
- Improved financial management: By outsourcing financial management functions to a shared CFO services provider, organizations can benefit from the provider’s best practices, tools, and processes, resulting in more efficient and effective financial management.
Shared CFO services have proven a boon to the startups and small businesses due to their financial limitations, scale and potential for growth. Some of the key roles and responsibilities of a shared CFO in a startup may include:
- Financial planning and analysis: The shared CFO can help the startup to develop financial models, projections, and budgets that align with its business objectives. They can also analyze financial data to identify trends, opportunities, and risks that can inform strategic decision-making.
- Fundraising and investor relations: The shared CFO can help startups to secure funding from investors by developing financial models, preparing pitch decks, and negotiating deal terms. They can also maintain relationships with investors and provide regular updates on the company’s financial performance.
- Financial operations: The shared CFO can oversee the day-to-day financial operations of the startup, including managing cash flow, preparing financial statements, and ensuring compliance with regulatory requirements.
- Strategic planning: The shared CFO can work with the startup’s leadership team to develop and execute a strategic plan that aligns with its financial objectives. This may include identifying growth opportunities, developing new products or services, or entering new markets.
- Risk management: The shared CFO can help the startup to identify and manage financial risks, such as credit risk, market risk, or operational risk, that may impact its financial performance.
How Can MNRS Help?
Through our shared CFO services offering, we provide small and medium-sized businesses access to high-quality financial management expertise and resources that might otherwise be out of their reach due to high costs involved. We provide shared CFO services to the clients by leveraging our expertise in accounting and finance to offer financial management services on a shared basis. Typically, our services include:
- Assessing the financial management needs of each client, including their current financial position, growth objectives, and areas of financial concern. This enable us to tailor our shared CFO services to meet the unique needs of each client.
- Based on the needs assessment, we develop a service offering that outlines the scope of our shared CFO services. We may include financial planning and analysis, fundraising and investor relations, financial operations, strategic planning, risk management, or other financial management services depending upon our need assessment.
- Based on our engagement terms, we implement financial management processes and tools that will help the business to manage its finances more effectively. This may include implementing accounting software, developing financial models and projections, and establishing financial reporting processes.
- In organisations with full time CFOs, we Assist CFOs identify the weakness in their financial control system implemented into the organization and providing solution for the continuous improvement therein.
- Supports CFOs in defining an optimal operating model that will increase its influence in the organization
- Supports the business and manage key finance activities more efficiently
- We can help you redefine the finance function in a relatively short period of time