In my two decades of experience working closely with several businesses, I have witnessed several promoters who believe that the biggest reason for their stunted business growth is the non-availability of the right people. Their limiting beliefs tell them that they cannot attract highly knowledgeable & reliable people.
Large corporates can afford a knowledgeable & experienced CFO to take care of their finances. They can hire a full-fledged Treasury team to ensure sustained wealth creation in their business. Unfortunately, SME’s can’t afford to recruit such high pedigree resources. As a result, they recruit employees who not only lack the required knowledge/experience in finance but also don’t take accountability for their tasks and also keep switching jobs every 2-3 years.
Even though most SMEs do hire the services of a CA firm, their scope of work is limited to statutory compliances and tax filing at the end of the year. Such organizations use traditional/primitive ways of managing finances in business, resulting in weak financial controls, cashflow mismanagement, and erosion of wealth over a long period of time.
The trick here is to outsource such responsibilities to a Shared CFO agency, i.e., an erudite team of finance experts who have the requisite knowledge and experience of managing business finances professionally. A Shared CFO works like a Finance partner in the business and accepts complete accountability of the entire finance function – at a fraction of the cost of recruiting an equivalent high pedigree resource.
Having worked very closely with several businesses in the past, Shared CFO’s handhold businesses in implementing robust financial controls that not only empower the promoters with clarity, confidence, and control over their business but also reduce chances of frauds/errors in business.
Thank you so much for investing your time in reading this article. I sincerely hope you found it useful. Please feel free to share it with other entrepreneurs in your network.
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The above article is penned by one of our finance mentors CA Vikram Menda to disseminate the best practices followed by some of the best businesses across the globe.
CA Vikram Menda handholds businesses in implementing new-age tools & techniques of financial management, thereby ensuring cash-rich businesses and timely compliances.