Role of CFO in the TradeTech Industry

A TradeTech or simply put technology used to facilitate trading is a type of Fintech that revolves around technologies and innovation used to optimize and synchronize trading activities. It is the amalgamation of technology and trading. The most prominent example of TradeTech is the use of Blockchain technology and smart contracts. Digitalization of TradeTech changed the way many MSMEs function as they started to resort towards the use of Artificial Intelligence (AI) and (ML) for simple processes. TradeTechs have two main objectives-

1. Transform trade data from analogue to digital
2. Optimise international trade

What is a CFO consultancy service?

We at Enterslice, offer a CFO consultancy service where our CFO consultant will be making, overseeing, and analysing all the financial needs and requirements of a company. A CFO consultant will help in formulating and implementing the financial needs and requirements of a company’s financial departments, and ensuring that the company is in compliance with the industry and legal standards.

How will a CFO help in growing your TradeTech Business?

TradeTechs are charged with mechanisms for growth, pushing the boundaries of innovation and evolution within the Fintech sector. To tap into growth you need a strong team that is well-versed in the financial performance of the business, and the team must include a competent and efficient CFO consultant. A CFO consultant will seek ways to bring more cash into the company while looking inwardly at how the business can be more financially strong. A CFO consultant’s day-to-day responsibilities will include regulating M&A strategy, regulatory relations, strategic planning, performance tracking, providing leadership with budgets, and more. Some of the key objectives of a CFO consultant in the TradeTech Industry are-

• To create a paperless and visible end-to-end supply chain that joins all the relevant stakeholders.
• To boost dependability and trust between the stakeholders
• Reduce cost by automating consecutive processes.
• To innovate a more efficient business model
• Increase sustainability through transparency about environmental and labour practices throughout the supply chain
• Reduce the risks of supply chain disruption
• Give the business better risk management tools.
• Reduce financial crimes by implementing and increasing transparency.
• Boost inclusiveness in trade
• Secure supply chain

Some of the key duties of a CFO consultant are listed below-

Build, plan, and implement the organization’s financial strategy- Enterslice’s CFO consultant will work diligently to provide the best-in-market financial strategy for a company. It is important to understand that the CFO consultant for a TradeTech company will have to be ‘cross-functional’. Our expert consultants will practice a variety of disciplines as it is not just about accounting and financial instruments. Our CFO consultants will grasp the TradeTech business from different angles. Monitor and provide regular financial reports to the board and its shareholders- one of the major benefits of hiring a CFO consultant will be that, they will create a detailed financial report and forecast any potential risk in the future.

Foresee and provide timely financial reporting and internal financial operations- One of the primary benefits of hiring a CFO consultant will be that, they will create a meticulous financial forecast to guide the long-term strategy which acts as a blueprint to help the company know exactly what performance metrics you need to hit to achieve their short and long term goals. The CFO consultant will also develop a dashboard and KPIs to monitor financial performance and provide real-time information on revenue streams. The result is both effective and efficient to achieve a profitable path.

Provide strategic analysis and helping hand to the executive board and the investors- in any Fintech company, the CFO consultant will work closely with the stakeholders, particularly during the capital allocation process. Whilst evaluating the different projects, a CFO consultant will aim to balance the conflicting objectives of the different stakeholder groups and find a solution that works in the best interest of the business. Particularly for TradeTechs, this means balancing the promises and risks of innovation, which is an art in itself and guarantees the power to drive investment. According to a survey, it was found that CFO or CFO consultants who adopted a strategic approach to stakeholder management and relationship building were 50% more likely to be successful in their transition. Considering that a poor hire can incur huge costs for a TradeTech company, looking for a strategic CFO consultant should be a top priority for a firm.

Develop accounting functions, reporting, and internal financial processes- Accounting is one of the most traditional and necessary jobs our CFO consultant does for a firm. Even if a company already has a bookkeeper or an accountant, a CFO consultant will ensure that accounting is always on time and done efficiently. The importance of accounting is higher if the Annual Recurring Revenue (ARR) is also high. The importance of accurate accounting cannot be overlooked. The majority of organizations already have a person for all their accounting duties but a CFO consultant ensures that everything is handled accordingly. A CFO consultant will manage the company’s treasury and cash management, including prediction and observing the cash flow. Managing working capital, and ensuring that the company has access to plenty of capital resources. Efficient cash flow management will lead to dodging any financial storm and taking advantage of chances for growth and expansion.

Provide advice on all trades and future trends of the market- Accounting is one of the most traditional and necessary jobs our CFO consultant does for a firm. Even if a company already has a bookkeeper or an accountant, a CFO consultant will ensure that accounting is always on time and done efficiently. The importance of accounting is higher if the Annual Recurring Revenue (ARR) is also high. The importance of accurate accounting cannot be overlooked. The majority of organizations already have a person for all their accounting duties but a CFO consultant ensures that everything is handled accordingly. A CFO consultant will manage the company’s treasury and cash management, including prediction and observing the cash flow. Managing working capital, and ensuring that the company has access to plenty of capital resources. Efficient cash flow management will lead to dodging any financial storm and taking advantage of chances for growth and expansion.

Need for a CFO consultant in the TradeTech Industry

The changes in the TradeTech industry are endless, but so are the opportunities to embrace these progressions and make the best. A CFO consultant will be working closely on both financial assessment and forward-looking skills. A CFO consultant will be like the pilot driving the company through turbulence. Here are some of the ways a CFO consultant can help-

Mandatory Regulatory Compliance

There’s a good reason why the TradeTech industry is so heavily regulated. Compliance measures are in place to protect customers and prevent fraudulent activities. Failure to comply with regulations can result in not only hefty fines and legal action but also serious reputational damage. When you’re looking after other people’s money or you hold a financial license of some type, there’s a very small margin of error for your business finance. In a startup, it is not easy to build the kind of robust and well-organized finance function that’s needed to maintain compliance. This isn’t the kind of situation where you can wait until there’s a problem. Proactive monitoring, reporting, and measurement is the only solution. This is where an outsourced finance team like Enterslice’s CFO consultant can step in. We at Enterslice are across the constantly evolving regulations and compliance requirements and we can ensure that you meet them. Our CFO consultants know the red flags and what to do about them to save you a whole lot of stress and money down the track.

Laying a strong fundamental

It’s easy to get wrapped up in the provocations of compliance but, at the end of the end; meeting your regulatory duties starts with laying rock-hard accounting foundations. Robust accounting foundations are laid when the basics are streamlined. When the basics are clean, well-organised, and someone is accountable for the finance function. If you’re chasing accounts payable, there’s no capacity to address the more composite accounting issues and requirements of the business. Even in a business where there are bigger problems to solve, we can start with the basics. That’s the value an outsourced CFO consultant adds to an organisation. Creating a finance function that can handle the complexities of the business’s accounting needs as you scale into the future. You’ll have insights about the financial performance of the business at your fingertips to make informed decisions about operations, strategy, and growth. By hiring a CFO consultant, you’re freeing up internal resources to focus on the core aspects of the business.

Access to higher-level Expertise

You can obviously build an in-house finance function within your TradeTech startup. But by hiring a CFO consultant you gain access to a whole other skills that you simply cannot get with an in-house team. What we bring to the table is collective decades of experience. You aren’t just getting one mind, you’re getting access to a whole team and diverse skill sets and potential related to that. Enterslice’s CFO consultants will bring insights, not just from the TradeTech industry, but broad industry perspectives from across our client remit. We at Enterslice are well-versed with the latest and upcoming trends, best practices, and emerging issues that will help you stay ahead of the curve and remain competitive.

Partnership for Progress

Expanding into new markets can be a thrilling adventure, but it can also be a daunting task. Along with new opportunities come new challenges, particularly when it comes to managing the finances. As your business grows, so do your financial needs, and navigating these can be time-consuming and overwhelming. An outsourced CFO consultant provides flexible and scalable options that can be bent according to the size of your team and support your business expansion and changing financial functions, providing the right level of support at every stage of your growth, so you can focus on your core business growth. Our financial expert CFO consultants have experience dealing with businesses and organizations of all sizes. We integrate seamlessly with your operations and offer insights and specialized talent when you need it.

Responsibilities of CFO consultant in the TradeTech Industry

The TradeTech industry is fast-paced and constantly shifts in nature, making it difficult to plan the future and manage upcoming/anticipated risks. Our CFO consultant will contribute massively to the growth and productivity of their organisation. As the TradeTech industry continues to expand and change, the CFO consultant’s role in the company will be important and some of the key responsibilities of a CFO consultant are listed below-

Upfront Financial course

The first benefit of hiring a CFO consultant will be that, they will create a detailed financial forecast to guide the long-term strategy which acts as a blueprint to help the company know exactly what performance metrics you need to hit to achieve their short and long-term goals. A CFO consultant will develop dashboards and KPIs to monitor financial performance and provide real-time information on revenue streams. The result is both effective and efficient to achieve a profitable path.

Direct Financial Functions

Having a precise understanding of the business’s financial place and goals the CFO consultant will help regularly review finance necessary papers with company stakeholders and adjust strategy as required. Enterslice’s CFO consultants will play an important role in the proper functioning of the company including accounting, tax planning, and financial reporting.

Probe Financial Processes

A CFO consultant will be responsible for providing insights into the company’s current financial performance. Attributes like revenue, expenses, and cash flow are some of the major aspects a CFO consultant will look into on a daily basis to ensure proper efficiency. By developing and implementing domain-related tools, the CFO consultant will ensure that the company receives timely, accurate, and actionable information to inform wise decision-making.

Fund Administration

A CFO consultant will manage the company’s treasury and cash management, including prediction and observing the cash flow. Managing working capital, and ensuring that the company has access to ample capital resources. Efficient cash flow management will lead to ignoring any financial storm and taking advantage of opportunities for growth and expansion.

Stakeholder Value and Profitability Approaches

Enterslice’s competent CFO consultants will guide the company on what attributes to pull and when to implement them. To make the best strategy they will analyse the sales revenue funnel, cash flow needs, customer acquisition cost (CAC), vendor contacts, profit margins, and staffing needs. It will be our CFO consultant’s responsibility to identify the areas of your business that are not generating a positive return on investment and recommend changes accordingly.

Pricing Strategy Development

A CFO consultant will be responsible for developing and implementing the strategy that ensures the business sustainably monetizes its offerings. They will work closely with marketing as well as the sales team to understand the market demand and other factors affecting the price component.

Threat Control

A CFO consultant will identify and omit the risks that could hamper company growth and profitability. Ensuring the company has the right insurance and coverage and sales tax policies. Reducing exposure to regulatory risks is also an essential duty of Enterslice’s CFO consultants.

Raising Capital and assets

A CFO consultant will help in raising capital for early-stage and growth companies. They will help prepare necessary reports and models to present to lenders and investors, as well as determine valuations and help to seek and interact with potential investors to secure the funding a company needs. By maintaining a good relationship with the investors as well as maintaining a working financial plan, Enterslice’s CFO consultant can help the company attract funds from secondary investors and creditors.

Drafting and Budgeting

The CFO consultant will be responsible for managing the budgeting process and developing a company’s financial plan. Predicting revenue and expenses, allocating capital, building financial models, and analysing financial metrics are some of the steps of planning and budgeting. Throughout the budget-to-actual process, the CFO consultant makes sure that all the attributes are in place at the right time.

Advantages of Hiring a CFO Consultant in a TradeTech Company

Some of the major benefits of hiring a CFO consultant are listed below-

Budgeting

A robust and well-put plan ensures that the business maintains a healthy profit. Budgeting is one of the primary responsibilities of a CFO consultant will do. Our CFO consultants have hands-on experience in the tools and skills required to do this task correctly.

Avoid Full-Time overhead

Small and medium-sized enterprises (SMEs) will benefit from the lower costs of outsourced Chief Financial Officer Consultants as opposed to hiring a full-time in-house CFO. This is primarily due to the flexible arrangements with virtual ones that allow them to scale their services upwards and downwards as needed by the client. As a result, their services are provided at a lower cost.

Extensive Experience

Enterslice’s CFO consultants have worked with a variety of companies, gaining experience and insights into the challenges and opportunities of various industries. As a result, they can present a unique perspective as well as a vast amount of knowledge that is put into action.

Structure in Hierarchy

Enterslice’s CFO consultants have worked with a variety of companies, gaining experience and insights into the challenges and opportunities of various industries. As a result, they can present a unique perspective as well as a vast amount of knowledge that is put into action.

Increased Cash Flow

It is a dream of every organization to increase its cash flow. This is the primary reason why a majority of companies want to hire an outsourced CFO. A CFO consultant will make everyone understand and aware of the business areas that need improvement and implement recommendations and solutions.

Dynamic Integration

One of the advantages of outsourcing a CFO consultant is the ease of integration of them into the already existing team. Our CFO consultants work for multiple units simultaneously hence they easily get involved in a new group.

Expert Finance Advisory

Based on the situation, our CFO consultants provide financial guidance. Appropriate financial planning paves the way for business growth. This allows senior administration to focus on the critical areas without worrying about budgetary issues.

Analysis of Break-Even Points

In break-even analysis, the final cost is compared to the income, which determines the point at which the business makes no profit or loss. The CFO consultant will assist in deciding break-even analysis, which will allow the organisation to control its costs.

Organisational Accounting Functions

Accounting services take up a sizable portion of the association’s revenue. It’s a model that aids in assessing an organisation’s monetary booking in health check.

Audit Assistance

Our CFO consultants provide audit support from start to finish by answering auditor questions.

Compliance

Corporate governance refers to all the rules and regulations that a company must follow. These rules aid in balancing the interests of stakeholders, shareholders, management, and clients.

Risk of not hiring a CFO consultant in the TradeTech Industry

Let’s look at some of the risks of not hiring a CFO consultant in the TradeTech Industry-

Change in exchange rate- Fluctuations in the current exchange rates can affect the value of goods and services traded between the countries.

Political Instability- Civil unrest, change in government, terrorism, etc. can disrupt trade and investments. Political unrest makes it challenging for businesses to operate in affected countries, and it can lead to supply chain disruptions, which can result in financial losses.

Regulatory changes- Changes in regulations, such as the introduction of new tariffs or trade restrictions, can significantly impact trade. These changes can make it more challenging for businesses to access foreign markets, etc.

Reduced Revenue- Fluctuations in exchange rates can make it more expensive for businesses to import or export goods, which can lead to lower revenue.

Uncertainty- Trade risk can create uncertainty for businesses, making it challenging to plan for the future and make strategic investments.

Data theft and Cyber assaults- There is no one-size-fits-all cyber security framework in PayTech due to the diversity of business and operational structures. Having the correct security assessment somehow doesn’t eliminate the everyday anxiety of cyber incidents.

Industry Leaders in the TradeTech Industry

Here is a list of Technology that is helping TradeTech companies leverage their success and profits-

Artificial Intelligence- AI is allowing the process automation and the development of new products and services with improved efficiency and quality, AI has the potential to impact several sectors of the trade.

Internet of Things- IoT devices placed within the cargo carrying goods allow people to access real-time geolocations from departure to final destinations. It is also used to monitor security and condition monitoring.

Robotics and Automation- Autonomous robotics have the potential to optimise work processes and logistics by enhancing, predicting, modelling, optimising, and autonomous execution capabilities.

5G- The deployment of 5G has enabled trade, especially in services. The application of 5G with AI and IoT is expected to bring digitalisation in trade to another level.

Blockchain- Distributed Ledger Technology enables decentralisation and secured transfer and storage of data. It is used to keep security in check along with trade finance, customs and certifications, etc.

3D Printing- 3D printing adoption has impacted trade volumes and the structure of value chains as some production moves to consumption markets directly.