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Addressing the challenges and automation of the finance function of a company, the role of CFO is critical for business profitability and for operational excellence. There are a number of small businesses in India that at some stage require CFO support services in order to handle all financial budgets and strategies. Let’s discuss more about it.
CFO means Chief Financial Officer. Such an officer is a senior manager who is responsible for the financial services in an organization. It becomes increasingly difficult to manage without a CFO. CFO helps in the management of financial budgets, strategies of any organization.
The primary objective of CFO is to track the cash flow and financial planning. Apart from it, CFO analysis the strengths and weakness of the company’s finances. It is also entrusted with the responsibility to ensure that the financial reports of the company are accurate and that it’s completed on time.
The different role of CFO support services are as mentioned below:
The benefits of CFO services over a full time CFO are as follows:
The CFO support services are responsible for the following in relation to the investor:
The main role of MIS is to focus on the information regarding the organization. It helps in developing technology systems. CFO analysis the business problems and prepares designs and uses software to solve the problems of the organization.
Board reporting is an effort to update the financial process of reporting. Trough board reporting, the directors are provided meaningful and timely financial information. It involves preparation of a complete checklist for the senior management explaining critical performance indicators. It is understood as the consolidation and redesigning of financial reports, budget report etc. therefore, it involves external and internal reporting by preparing detailed MIS reports.
There is quite some type of CFO services available. You have to check which type suits your business.
We have provided you with some kinds of CFO services available:
Consulting services mean consultants consisting of experienced CFOs who provide short term work with your company for setting up certain procedures and reporting. They can also serve as interim CFO for a particular project or during a transition stage.
These are agencies that provide a long term solution to your financial management systems. The agency shall oversee the financial staff, but it may be noted that it’s not at any location or involved in the day to day corporate management of the company.
It is operated by a single person. It provides CFO services to multiple clients. One has to ensure that this individual is familiar with the industry that he is looking for and can fulfil any urgent requirements.
Staffing firms are companies who provide with efficient and best staff.
These networks provide CFO consultation service on regional as well as nationwide basis.
There can be some potential risks if you don’t take the assistance of such services. We have specified some of the risks below.
A CFO support service can offer you the best opportunity to fulfil your goals. It will generate weekly reports or monthly reports according to the requirements you have and your present needs. It would also take care of your bookkeeping and controller staff to make sure that all procedures have checks and balances in order to strengthen security and accurate financials.
They can help you to prepare CFO service for your board meetings. It will present a financial package to provide an accurate showing of the company. A CFO service may or may not provide direct investor relations, however, it would provide financial reports to attract investors to the company.
Read our article:The Importance of Investor Relations and the role of CFO