4 Signs Start-ups And Small Businesses Require An Outsourced Cfo

By Author: Narith Business Services
Total Articles: 24
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One of the most crucial activities, business finance management, if done efficiently, immensely contributes to the growth of a business. Incorrect financial inputs on quantities, costs, margins, inventory, cash flows etc. can adversely influence a company’s market share, access to the capital and eventually the profitability of the business. Hence, a company must have skilled and experienced business finance management executives, who can proficiently keep a track of all its finances and prepare error-free financial statements, which are a reliable source of information for investors, creditors, lenders, and other stakeholders. Besides, strategic financial planning helps businesses to ensure their expediency and the right allocation of funds by providing a clear idea of what they are currently doing and where they are headed towards.

It does not have enough funds to update its outdated accounting practices. With the rapid advancement of technology, accounting practices are also getting amended. The advent of cloud-based accounting makes sure the one using it is compliant with all the legal and industry requirements. ...
... However, switching to the latest accounting practice and buying software often turns out to be expensive for small companies. But outsourced CFOs are often equipped with cutting-edge software and updated on the latest accounting practice.

It is facing cash flow issues. In the case of start-ups and small businesses, generally, the owners manage to create cash flow projections and budgets single handedly, in the initial phase. But, as a business grows and the supply chain gets erratic, various unanticipated variables often pop up and put the company in financial turmoil. The rapid growth of a company signifies that it is experiencing high demand for its products or services. But this increased demand often leads to operational inefficiency, which requires a huge amount to get fixed. As a result, the company faces a cash flow crunch to meet the growing market demand. An outsourced CFO, due to its expertise in finance management, can effortlessly tackle such a situation by keeping a track of the cash inflow and outflow of the business. This allows the outsourcer to efficiently handle the growth phase without worrying about cash flow issues.

Narith provides highly differentiated process outsourcing and IT-enabled services. We combine process delivery competencies with technology, analytics and domain experience to deliver long term operational and financial gains to customers. We provide services across multiple industry segments and functional specializations.