Role of Finance function, CFO, outsourcing finance function



Changing CFO Role

Speaking with The Accountant IMA chief executive Jeff Thomson said this is also an educational challenge as the gap between what the CFO team is expected to do and their skills set and preparation is increasingly widening.

The Association of Chartered Certified Accountants president Martin Turner, who attended the conference, underlined how the CFO role has changed in the last two decades from a technical role, dealing largely with transactional issues, to a more strategic one.

"Today is about risk management, policy, strategy, the development of the company, the sustainability...The role of the CFO has developed towards the future of the organisation," Turner told The Accountant.
He continued: "Stakeholders don't want to know what you have done in the last year but what you are going to do in the next five. There is more pressure in companies to react to those questions. CFOs have to be at the front line to answer such questions."



Developing a Financing Strategy
Introduction

A financing strategy is integral to an organisation’s strategic plan. It sets out how the organisation 
plans to finance its overall operations to meet its objectives now and in the future.
A financing strategy summarises targets, and the actions to be taken over a three to five year period to achieve the targets. It also clearly states key policies which will guide those actions.

A suggested structure and contents for a financing strategy are outlined below.



1.  Where are we now?
This section summarises where the organisation is at the start of the strategy. This includes an assessment of the key risks facing the NGO and the opportunities and resources it has available.

2.  Where would we like to be?
This section summarises key financial targets for three to five years’ time, and is informed by the risks and opportunities identified in the first section. It will include as a minimum:
  • The desired funding mix – the balance and sources of restricted and unrestricted funds.
  • Donor dependency – linked to the funding mix, this is the realistic and appropriate level of funding to accept from donor agencies (expressed as a percentage of overall income).
  • Level of general reserves – usually expressed as the number of days that the organisation could continue without external funding.
3.  How do we get there?

This is the ‘meat’ of the financing strategy. It describes what actions you will take each year to finance the strategic plan and achieve the financial targets identified in the second section.
This might include sections on:
  • how to increase the mix and level of unrestricted funds
  • how to finance core costs
  • how to build up reserves
  • how to replace and maintain fixed assets
  • how to apply funds to achieve maximum benefit
For example, actions to increase the percentage of unrestricted income might include:
  • increasing or introducing fees for users of services to recover some or all of the costs of providing the service;
  • introducing income-generating activities;
  • making use of under-utilised resources (eg renting out office space, vehicles);
  • increasing the priority given to fundraising for unrestricted funds.
4.  Key Policies

This section will include policies that guide the financing strategy.  The examples given are for guidance only, and may not be appropriate or detailed enough for your organisation.

  • Reserves policy – what level of reserves you aim to build up, and how surpluses will be handled.
Example: It is our policy to maintain general reserves equivalent to 6 months of operating expenditure.  This policy is reviewed by the Board every three years.  General fund surpluses in a given year will be added to this reserve.  If the reserve level exceeds the policy level, we will  spend it on behalf of the beneficiaries in line with our strategy.
  • Core costs policy – what method will be used to recover programme support costs from projects and funders. It will also clarify the policy on subsidising ‘poorer’ projects and how that will be decided and managed.
Example: It is our policy to appoprtion overhead costs to projects on a monthly basis, in proportion to the direct costs incurred by each project.  Each project should generate enough income to cover both its direct and apportioned indirect costs, unless the Board authorises otherwise for particular cases.
  • Pricing and cost recovery policy – where charges are to be made to service users, this will explain the basis and formula used for the charging, and the pricing structure.
Example: It is our policy to charge users of the clinic for consultation, drugs and lab tests.  The basis for the charge is cost plus 10% to cover overhead.  Patients unable to pay may apply to our 'Special Scheme' for assistance.
  • Ethical policy – this will explain who the NGO will or will not accept funds from and what funds may or may not be used for. This will be particularly relevant to NGOs involved in advocacy work.
Example: It is our policy to consider the ethical nature of all funds offered to us before accepting. For example,  we will not accept funds derived from any illegal source, or from corporates engaged in arms dealing or child labour.  We will not accept funds that create a conflict of interest.  We consider each case in line with our values.


Finance transformation

Finance transformations can take many forms,varying from company to company.

An ideal finance transformation program supports the organization’s strategic direction and is
responsive to the demands placed by an ever changing and dynamic business environment.

As CFOs becoming more engaged in corporate strategy,finance transformations are a critical path to prepare their organizations for the changes that strategy execution requires. Indeed, how can organizations enter new markets, offer new products, acquire companies, assess customer behaviour, find gaps in supply chains, and take advantage of big data and today’s analytic tools without some form of finance transformation?

The pace of change and the degree of complexity seems to be increasing with constant regulatory changes, demand for shorter reporting deadlines, focus on acquisitions, and increasing globalization.


Common Six Sigma process improvement projects identified in Finance are listed below:

Reducing documentation errors
Improving the reconciliation processes
Reducing or eliminating invoicing errors
Eliminating the possibility of erroneous data entry
Reducing audit non conformities
Reducing salary issue turn-around time
Control spending over time
Reduce electronic financial transaction costs, time and increasing safety & security
Enhancing (internal or external) customer satisfaction and reducing complaints and reducing response delays
Improving customer feedback and response processes



Critical Role of Finance function in an organisation


Basic Role of Finance Function in an organisation

In simple words Finance function provides solutions to various questions like :

• How are we doing and is the business profitable?

• How much cash do we have on hand and can we pay our bills on time?

• What should we spend our funds on? Operating activities or non-current assets?

• Where will our funds come from? From internal operations? From lenders? From shareholders?

• How will our investors’ interests be protected? How much will it cost?




Chief Financial Officer : Risk Managment, Cost Control, Fund Raising, Internal Controls, Budgeting, Adopting IT, Strategic planning

The CFO supervises the finance unit and is responsible for financial planning as well as financial reporting. The CFO typically reports to the chief executive officer and to the board of directors, and may additionally sit on the board. He assists the Chief Operating Officer (COO) on all strategic and tactical matters as they relate to budget management, cost benefit analysis, forecasting needs and the securing of new funding.

The CFO is generally responsible for 

·         Record-keeping, as well as financial reporting to higher management.

·         Financial planning and Risk Management

·         He may also be responsible for analysis of data.

·         He is the chief financial spokesperson for the organization.

·         As corporate governance requirement under the corporate law and/or securities regulator require him to certify the financial statements.

He is one of the C-suite officers. The C-suite officer refers to a corporation's most important senior executive. C-Suite gets its name because top senior executives' titles tend to start with the letter C, for chief, as in chief executive officer, chief operating officer and chief information officer. Being a member of this group comes with high-stakes decision making, a more demanding workload and high compensation.
In recent years, the role of the CFO has evolved significantly. Traditionally being viewed as a financial gatekeeper, the role of the CFO has expanded and evolved to a strategic partner and advisor to the CEO. In fact, in a report released by McKinsey, 88 percent of 164 CFOs surveyed reported that CEOs expect them to be more active participants in shaping the strategy of their organizations. Half of them also indicated that CEOs counted on them to challenge the company’s strategy.

The CFO of tomorrow should be a big-picture thinker, rather than detail-oriented, outspoken rather than reserved, prefer to delegate rather than be hands-on, emphasize what gets done rather than how things are done, and make collaborative rather than unilateral decisions. The CFO must serve as the financial authority in the organization, ensuring the integrity of fiscal data and modeling transparency and accountability. The CFO is as much a part of governance and oversight as the Chief Executive Officer (CEO), playing a fundamental role in the development and critique of strategic choices. The CFO is now expected to be a key player in stakeholder education and communication and is clearly seen as a leader and team builder who sets the finance agenda for the organisation, supports the CEO directly and provides timely advice to the board of directors.

The uneven pace of recovery worldwide has made it more challenging for many companies. CFOs are increasingly playing a more critical role in shaping their company’s strategies today, especially in light of the highly uncertain macroeconomic environments, where managing financial volatilities is becoming a centerpiece for many companies' strategies, based on a survey held by Clariden Global. CFOs are increasingly being relied upon as the owners of business information, reporting and financial data within organizations and assisting in decision support operations to enable the company to operate more effectively and efficiently.

The duties of a modern CFO now straddle the traditional areas of financial stewardship and the more progressive areas of strategic and business leadership with direct responsibility and oversight of operations (which often includes procurement) expanding exponentially. This significant role-based transformation, which is well underway, is best-evidenced by the “CEO-in-Waiting” status that many CFOs now hold. Additionally, many CFOs have made the realization that an operating environment that values cash, profit margins, and risk mitigation is one that plays to the primary skills and capabilities of a procurement organization, and become increasingly involved (directly via oversight or indirectly through improved collaboration) with the procurement function according to a recent research report that looks at the CFO's relationship with procurement.


CFO: To be and how to be
Robin Banerjee, Caprihans India Limited
26th October, 2018

We all want to progress up the corporate ladder and we eventually find out that the going gets tougher while climbing the organizational pyramid structure. Let's deconstruct how to go about it.

Over half of my working-career I have been a CFO, graduated to a CEO role about half-a-decade ago. When I was not a finance chief, I wondered if someone would let me know the golden-rules to become one. Then on being vested with the CFO seat, I fancied for the coveted corner office chair, and wondered how to get there!
These must be the dreams of most of us -- we all want to progress up the corporate ladder. But all of us eventually find that the going gets tougher as we keep climbing up the organizational pyramid structure.
So let me share a few tips which you may follow to become a CFO; and on having become one – how to successfully retain it.
Needless to mention, it is assumed that you are good technically, having sound job and subject knowledge. Ability to go beyond the numbers will be crucial. Without this basic stuff, nothing will work.
How to be a CFO?
·         Uncluttered thought: Declutter your thinking, especially with problems in hand, provide simple probable solutions. Convoluted, long-wounded and roundabout arguments will just not help. If you are not clear of the problem in hand, go back to the drawing board and do not make hazard guesses.
·         Accounting and auditing is not everything: Business is a lot more than accounting and auditing functions. It involves the complete value chain – from procurement to making, then marketing, sales and collections. In service industry, the value chain could be a bit different though basics will still be similar. Therefore, the finance manager must take a 360-degree view and not just get stuck in mere numbers.
·         Communication is supreme: You should be able to communicate clearly and simply in both verbal and written way. There is no organisation that needs a Shakespeare amongst them. But they also cannot afford their finance chief being unable to construct reasonably good reports.
·         Positivity is positive: Being finance professionals, we often argue on the small stuff -- lack of controls in operations makes us angry; inaccuracies in figures and statements, raise annoyances. But, unless you show empathy and positive attitude, you are unlikely to be considered for the big job.
·         Good health and demeanor: You need not be the Mr. India, but you need to be fit. Cannot blame heavy work for not being able to hit the gym. Just walking or doing yoga, may not be good enough. Plus, do not look shabby and scruffy – that's not what corporates appreciate.

How to be a successful CFO?

Having got the job of a CFO, the more difficult part is to retain it. You will need to evolve from focusing on bean-counting, compliance and control to planning, strategizing and partnering. The searchlights will always be on you -- every day is an examination day.
·         CEO relationship is kingly: CFOs are often the number two of any set up. Unless the numero-uno - the CEO and the CFO - has a good working relationship, no organisation can flourish. The CFO has to necessarily have the trust and confidence of the CEO. A good understanding amongst the two will help immensely.
·         Board is not border-line: There have been many instances when CFOs have been shown the door when they could not keep the Board informed of difficult developments. Maintaining a congenial relationship with the Board is important. The CFO must understand that most Board members will not be from the finance fraternity, and hence they may not be numeric in their approach. Explaining them business nuances in simple terms, is vital.
·         Motivational motivator: A leader needs to motivate others to perform. Every organisation will go through ups and downs – business is always like a roller coaster – but the CFO needs to balance the upward swing and steady the ship when downward swipes happen.
·         Macro view: While finance and accounting jobs involve a lot of micro number management, it is the CFO who gets to see the big picture. Thus, the CFO should be able to present a holistic depiction of the business developments to the CEO and the Board. This enables proper decision making at the top level.
·         Presentable presentations: CFO being the flag bearer of an organisation, ability to present the company picture lucidly and yet fairly, is crucial. Verbal explanations of chart contents and clear answers to questions raised, are vital. Crisp, clear and ship-shape, is the corner-stone of a good presentation.
·         Talent is not latent: CFO is the leader of an organisation. Every business need to have a good talent pool. Encouraging and nurturing human resource is crucial. And when insider sources cannot provide it, outside avenues need to be explored. The CFO must help the CEO to maintain the pipeline of good talent. Please note: we are as good as our people; and the CFO should help to make it happen.
·         Endurance and ethics: Why do some companies last for centuries but most do not? Short cuts and cutting corners result in the end of endurance. Pain may have to be taken for righteousness, but it ultimately pays-off. Businesses are meant to make profits. But when surpluses are generated by hook or by crook, problems arise. Cheating is fine, till one gets caught – and more often than not, the truth catches up sooner than later.
The list is not comprehensive. But the guidelines include some common stuffs which many of us, the financial managers, miss out while chasing the golden goose.
In essence, CFOs are partners in the progress of a business. It is usually the second hottest seat in an organisation. With power comes responsibilities. A good CFO ultimately should behave as the de-facto CEO.
Take up the CFO challenge, behave as if the business belongs to you, motivate and guide others, and keep yourself grounded – success is bound to ascend – whether you are the CFO or the one sitting on the wings to become one.



CFOs should think beyond numbers, and be strategic leaders
By Ramnath S
A CFO in this age is required to wear multiple hats. One of the must-have skills set for a CFO is communicating with colleagues and stakeholders who are not well versed with the finance ‘lingo’. This may look tricky but isn’t really. A CFO with a strategic bent of mind very well knows to navigate his way through.
Broadened role of a CFO requires him to think beyond just pure numbers and engage with various stakeholders. Leading companies expect CFOs to compliment their sound domain knowledge with exceptional communication as well. Belting out numbers to colleagues who are not number friendly is a case in point. These are better delivered in the form of a story. He should be able to explain the reasons, factors and rationale behind those numbers followed by the impact it will have on the business.
Thinkstock
We are in the age where CFOs as accountants are making way for CFOs as business partners. The real challenge for Finance Leaders today is not improving their number crunching and financial analysis expertise but acquiring the professional and personal skills to understand the business drivers.
Almost all business situations require an active involvement from a CFO. To name a few, pricing strategy, market assessments, leverage, staffing mix, margin improvement, cost management efforts among others have a major financial aspect to them where finance can add value.
It indeed is a challenge to divide time between CXOs and other departments for complex targets and responsibilities. But, in the end it all boils down to a CFO’s ability to collaborate, reason and influence the leadership team. It is important for CFOs to free up their time for more strategic activities by harmonizing, simplifying and bundling all repetitive tasks.
In most organizations, personnel cost or people related cost is the largest portion of the operating expenses (OPEX). For instance, HR department is responsible for recruitment and talent pooling. Finance department can help the HR with required data and analysis. Both teams can strike a healthy harmony and together deliver the desired result. While from a financial perspective, CFOs would want to ensure that recourses are optimally allocated, HR ensures that right people are at right jobs. Bringing transparency on resourse allocation, cost data and achievement KPIs would go a long way in bringing credibility to performance linked pays. Optimizing personnel costs and resources requires proper alignment of responsibility across the organization. For any profitable business growth, both human capital and financial implications need to synchronize.
Business expansion is another function where a CFO’s contribution is crucial. One of the areas for support is in the approach to acquisitions. When acquiring new businesses, CFO’s can be part of the ‘SWOT’ team developing strategy, assessing targets and developing the business case. CFO’s can also actively support in due diligence, change management and business integration.
Speed is the essence in today’s business environment. Businesses are expected to react faster, be nimble and be less bureaucratic. CFO’s become agents of change, creating smarter work patterns throughout their organization that drive efficiencies. CFOs can build an empowered organisation while ensuring that the necessary controls are not compromised. This would help companies to be faster and be less administrative, bringing about more proactive culture and ability to think and act quickly to market needs.
CFOs are the guardians of good business practices and controls. What is important is to achieve a good balance between independence and collaboration. This is where some exposure or experience in business divisions would help CFOs to be a better listener and not perceived as saying ‘No’ most of the times.
[The author is executive director & lead CFO partner, MyCFO]



The buck stops here in case of scandals, scams and unethical practices


Toshiba executives quit over $1.7 billion scandal
July 21, 2015 - 11:00PM
In an accounting scandal that has tainted one of the most fabled brands in Japan and forced its top executives to step down, Toshiba Corporation said it will correct earnings by at least 152 billion yen ($1.7 billion).
The company's top executives set unrealistic profit targets that systematically led to flawed accounting, a summary of a third-party investigation released Monday showed. The irregularities were "skillfully" hidden from outside observers, according to the summary.

President Hisao Tanaka and his predecessor Norio Sasaki sought to delay booking losses and employees were unable to go against management orders, according to the report. Toshiba said it will cut earnings from more than six years in Japan's biggest accounting scandal since Olympus Corporation's $US1.7 billion in irregularities in 2011.



Charges of over-billing Apple cost Infosys BPO’s CFO his job

November 20, 2014   The Hindu

Infosys has sacked its BPO unit CFO Abraham Mathews and will fire some others senior executives for allegedly overcharging Apple Inc for IT support services.
While Mr. Mathews, chief financial officer of Infosys BPO, was sacked for failing to comply with the company’s code of conduct, the unit’s chief executive officer Gautam Thakkar quit on “moral grounds” and would leave the company by month end.
Infosys is reportedly sacking a few other senior executives for the irregularities which came to light during an internal audit.
While Apple did not immediately respond to an email sent for comment, Infosys said the “financial irregularities are not material in nature” and it has taken “disciplinary action” against the employees involved.
Earlier on Tuesday, Infosys BPO showed the door to Mr. Mathews for not complying with the code of conduct, while CEO Gautam Thakkar resigned taking responsibility on moral grounds.
Apple outsources application development and maintenance work to Indian IT services providers and the contract is tipped to be in the range of USD 100-500 million.
“Mathews was sacked as he did not report the issue of over-billing of the back-end services being provided to Apple. He also failed to act swiftly on the charge,” an industry insider said on conditions of anonymity.
Another source said the “irregularities” came out during an audit exercise earlier this year.
Infosys decided to take up this issue with all “seriousness” so that the extent of the damage done to its reputation could be checked and set an example for employees, the source added.
When contacted, an Infosys spokesperson said: “The financial irregularities are not material in nature and the company has already made required disclosures. The company has taken disciplinary action against the employees involved.”
The company, however, declined to comment further on client specific matters or on the investigation as they are “confidential in nature”.
“It is a brave step from Infosys’ side to come out and talk about the fraud going on internally in the company. It showcases Infosys’ culture of ‘no-nonsense’ when it comes to their customers,” Greyhound Research CEO Sanchit Vir Gogia said.
Infosys is an ethical company with solid processes that respects its customers and this is not going to affect their business, he added.



Why companies outsource accounting

Published on November 24, 2018. Nikesh Seth Co-founder Expert Mile


Many small business suffer huge loss of bandwidth in their business due to focus and attention in non core business areas. Either one can invest time in core business and grow it or keep investing time in non core activities like hiring, accounting etc., which can be outsourced. We have collected and compiled why SME and startups should outsource their accounting operations to outsourced experts for following reasons,
1.     Experts are better at accounting: Experts are doing this things in day to day job and they can do it better and faster. Many compliance changes and experience gained while working for other clients would be added advantage for your business while performing your accounting. for eg. how to deal entry of TDS deducted but not paid by due date, later it was paid after due date. Experts can do it better 100%.
2.     Less dependability on staff on payroll: Most of SME and startup faces issues of hiring staff and retaining them.It is very big problem for SME as they have limited staff and limited amount to pay them. Once accountant see better opportunity he will naturally leave organization. Issue here is that SME hires staff and gives him/her multiple responsibilities and over a period becomes dependable on the staff. Now if staff leaves them it becomes more difficult for SME as it starts with again new challenge i.e. hiring, training and again retaining...
3.     Cost efficient: It helps you to save lot of cost in terms of hiring costs and training costs. In addition to the same, if you check at day to day schedule of accounting employee, if it has its core function for not more than 2-4 hours a day, you can give a thought about oursourced accounting and evaluate options of oursourcing accounting. If your accounting work is less than 2 hours a day then you should definately go for outsourcing accounting. generally for 2 hours kind of job a day which is 8 hours a week, experts charges INR 15,000 to INR 20,000 per month, which is very cost effective considering other cost attached to inhouse accountant like space in office, higher salaries, traning costs, infrastructure in office, bonus, labour law compliance, accounting software costs etc.
4.     Third party opinion: Advise from third party who is not on your payroll would be much better than advise from person on your payroll especially when you as boss doing something wrong which is not good for your business. Many times inhouse team view things collectively and miss the third party independent review and opinion. In case of oursourced accounting you get opinion of third party expert for free, which acts as third eye for your business or CCTV camera for your business.
5.     Value added services: Many outsourced accounting professionals provide value added services like periodical MIS reporting i.e. predefined report sent at regular intervals i.e. stock statements, debtor ageing analysis, sales mix, product mix which helps SME or startups to make better decision.
6.     Sustainable services: It is business for accounting service providers and it will be more sustainable than employee. Further to say, it is cost effective for outsourced accounting professional as he will hire the same quality of accountant which you were planning, but professional has more utilization capacity. i.e. Accountant will be hired by outsourced firm and he will be given 4-5 such accounting tasks. It makes it more cost effective for outsourced firm same as ola and uber, who just do better utilization of car and human resources. This is to say your accounting partner is not going anywhere as he is making enough money.
7.     Focus on core business: Once your accounting is outsourced you can focus on your core business and stay relaxed for your accounting and compliance needs as they have been given to experts. In fact now you as owner of business have more time to focus on core business and new business initiatives.
8.     Service options as per your business needs: You as startup can have multiple options i.e. daily reporting, weekly reporting, monthly reporting and also some of outsourced partners provide managed human resources on their payroll but they will operate from your office, if you as SME or startup want it that way for data privacy issues.
9.     Outsourcing contract: You can define your service requirement, get quotation and finalise the outsourcing accounting contract to give it legal value. You can include important points as to service requirement, deliverable definition, handover clause, ownership of accounting data, payment clause etc. Outsourcing contract is B2B contract which holds better legal value in terms of enforceability. It can be entered on letter head of client as well as stamp paper(franking). 






Service providers in India

mycfo.in/

www.supercfo.com/

www.ixcfo.com

http://italentia.com/

www.s3solutions.in  Bangalore

www.italentia.com/

http://www.inspacebiz.com/ 

http://www.rkta.in/cfo-outsourcing.html 

http://aristotleconsultancy.com/virtual-cfo/ 

http://camcd.in/services/Cfo_Management_Services.htm 

http://www.vpscfo.com/ 

http://www.visitingcfo.com/ 

http://www.supercfo.com/ 

http://www.finegral.com/ Pune 

http://northway.in/

http://alamakcapital.com/

International/Overseas

www.corecfo.com

www.corecfosolutions.com

www.harvestcfo.com

www.cfowise.com 

www.virtualcfo.com 

http://www.virtualcfos.com/ 

http://cfocentre.com.au/ 

http://cfoevolve.com.au/

http://trustedcfosolutions.com/

http://cfosolutions.evalueserve.com/about-us/

http://www.summitcpa.net/virtual-cfo-services 

http://www.reidtrading.com.au/ 

http://www.cfoconsultingpartners.com/ 


Inhouse Vs External Agencies

In the 1930s, the economist Ronald Coase theorised that companies exist because the cost of doing business inside a firm is less than the cost of doing business with parties outside of the firm. Trust, shared culture, more information, and other factors made it so you were more likely to trust an accountant who worked for your company than one who worked for someone else.

So, if the cost of doing business with outsiders falls, firm sizes might shrink -- dramatically. As the quality of outside service is often much better it makes good sense to hire external agencies.



At What Stage a small business owner should hire a virtual CFO?

An important internal tipping point is when information that helps the business make timely and important decisions is not being prepared. Business owners make decisions at the pace of the business and must be able to rely on the accurate and timely information provided by CFOs. It‘s never too late to make a change

In many small- to medium-sized companies, the CFO is responsible for the interpretation of the results, cost control measures, capital acquisition, and forward-thinking due to economic, industry, tax, government regulation and social issues. In some cases, the CFO can also be the OFO, or Only Financial Officer, and must rely on bookkeepers for accurate processing of financial information. The CFO must also be critical of the banking relationship – there can be no slip-ups.


 Should a business owner hire a CFO when the company hits a certain revenue figure?

MP: It will largely depend on the business and/or industry. A company generating $10 million in revenue might be ready for a CFO while a company generating $20 million may not be. One client could sell its product for $1.5 million each but only sells five units in one year, while another client might need 28,571 transactions to reach $10 million with an average transaction of $350. The complexity of the transactions can also determine the need for a higher level of experience or knowledge.

What external indicators should small business owners look for?

The critical external point is when respect must be gained outside the company. That could be from customers, suppliers, banks, shareholders or government regulators.
 Rapid growth is another important indicator. Growth requires an expansion of automated systems to handle the growth, and additional capital and/or financing to finance the growth. A CFO is best suited to handle rapidly increasing growth due to the complexity involved. He or she must be able to interpret the investment and technology, and the terms of acquiring capital.
One final indicator is when a business is preparing for a merger or acquisition. In this situation, the CFO must be able to choose the correct team to evaluate a target acquisition. In many cases, that will result in outsourcing to a firm to perform the financial and regulatory due diligence. The CFO is the best person to interpret the report issued by the due diligence team so the terms can be tailored to the findings. A very important skill required of CFOs is the ability to feed a potential investor or lender. Preparing the information and anticipating their questions will shorten the process and eliminate further digging.

What specific responsibilities should the CFO of a small business have?

 A CFO in a growth-oriented small business must be hands-on. Being in the weeds is critical to controlling growth and communicating results to those with money at stake. That could be the owners or shareholders, banks, insurance companies and – let’s not forget – the employees. As growth occurs, the company and its key customers, suppliers and employees will face new risks. Managing risk involves not only having insurance, but the CFO must also protect the company from regulatory, environmental and human capital risks.




 Job Description:  Accounts Head / Controller

Reporting to Chief Finance Officer

Experience 12 to 20 years



Responsibilities

The candidate would have responsibility for financial accounting, costing, budgeting, MIS, project accounting, indirect tax compliances, cost control, cost analysis, variance analysis, banking & working capital and various statutory compliances related to the function as well as complying with all auditing functions as well as accounting standards.

Financial Accounting & Internal Controls:

Provide best visibility of the company's performance, ensuring full integrity of financial reports.

Implement appropriate accounting structure, controls and procedures to better identify and track financial and profitable indicators, cut cost, improve profitability and minimize risks.

Finalization of accounts, dealing with statutory & internal auditors & secretarial functions – requiring knowledge of Indian GAAP.

Drive timely preparation of financial statements, reports, analysis and MIS information reports.

Adhere to the statutory compliances related to the function.



Planning & Budgeting:

Drive Budgeting process, prepare business plans and projections under guidance/with the CFO and monitor the same.

Define responsibility of budgets and policies to ensure control over income and expenditure.

Compilation, submission and getting approval of Budgets & their periodical review and Monthly MIS reporting – overall supervision of accounting & finance functions. Submission & review of Capex and operating plans & budgets.

Introduce systems that provide early warning of likely problems.



Business Finance:

Supporting business with active participation in the decision making process.

Suggesting financing solutions to the customers & vendors.

Arrangement of necessary financial resources including project financing, loans/ECB, efficient funds planning, cash flow management, working capital management & dealing with the Banks.

Forex management & hedging.

Proper Credit Control Systems and limit authorization for customers.



Strategic Initiatives:

Will be a part of M & A and JV initiatives.

Responsible for new JV/Legal entities business platform set-up.

Evaluation of major capex plans using tools like IRR, Payback period etc.



Costing & MIS:

Establishing strategic cost management systems for monitoring various overheads and achieving optimum cost control in operations.

Best costing techniques/methodology to help in decision making.

Evaluate make or buy decisions.

SBU wise reporting for respective business units.



Opex Management:

Will lead the business teams in operational excellence measures and will assist CFO in such initiatives.

Working capital management – Days Sales Outstanding (DSO), Days on hand Inventory (DOH) & Days payable outstanding (DPO) monitoring and control.

Effective utilization of other assets for the business.



Direct & Indirect Taxation:

Preparing tax plans & ensuring timely filing and assessment of direct and indirect tax returns.
Require excellent knowledge of Income Tax, Sales Tax, Service Tax, Excise, VAT, etc.

Exposure to DTAA and international taxation.
Will be responsible for GST roll out.





Key Attributes

In-depth understanding of financial concepts, accounting, budgeting and cost control principles

Self starter with good leadership skills

Clarity of thought – Analytical & Logical

Quick decision maker with a problem solving attitude

High integrity

High maturity

Flexibility

Ability to work at all levels and ensure successful completion of a task

High energy

Self initiative



Qualifications

Preferably CA or ICWA 


Controller in case of BPO/ ITES organization.

Position summary:

Global controller is responsible for running F&A service delivery with special emphasis on driving adherence compliance framework and financial reporting in line with IFRS while also optimizing efficiency and enhancing control. In addition this role will drive and support global reporting requirements, including key performance indicators, critical business indicators and reporting of support of day to day operational activity. This position also responsible for controlling the quality of Reconciliations, identify the exposure, guide regional controllers on tactical moves and draft strategies working closely with counterpart from Client group leveraging the Continuous Assurance Program testing results and client internal audit findings and recommendations. Also, own and administer GPM / GSM process revisions, regular checks and bring best in class practices from industry and align it to changing regulatory and audit environment

Key Responsibilities and Accountabilities:

Org specific:
  • Own and run career & employability framework and allied initiatives.
  • Ensuring QMS, ISMS and ISO adherence and clearing audits without any NCs.
  • Develop and execute Delivery excellence strategy and initiatives in the process.
  • Responsible as Escalation Point for key service outcomes and issue resolution.
  • Responsible for developing and maintaining relationship with senior client executives.
  • Support ED / BU Head in ensuring profitability of the contract by diligently tracking and managing cost, budgets and HC and succession planning

Engagement role specific:
Responsible for driving and managing the below from his team and accountable for the output and results

1. Statutory, Controls, Compliance & Audit
  • Ensure execution of relevant controls
  • Suggest, Improve, Propose new controls to ensure financial data integrity and compliance to various statutory and legal requirements of the region (Local GAP, IFRS)
  • Preparation of Audit packs during SoX and statutory audit.
  • Manage audit queries and oversee information & processes

2. Diligent execution of B/S Account Reconciliations framework with an objective to minimize client exposure and identify and rectify issues pro-actively.

3. Creation of CoEs (Center of Excellences)
  • Standardize, Re-write, Create global processes
  • Develop experts pool and institutionalize the knowledge

4. Financial Reporting
  • Hyperion report pack preparation and submission as per deadlines and in accordance with the accounting and reporting policies communicated by client.
  • Unit lock-meetings with client Controllers and Finance Heads
  • Narrative and explanations to variances

5. Month End Closing Management
  • MEC tasks (tracking, controlling and reporting) as per the agreed calendar
  • Controls execution and reporting

6. During the month - Accounting & Operations management
  • Review central functions with a view to check compliance to standards and effectiveness of the controls - B/S Reconciliation, GRIR, Bank Accounting, Scheduled journals, Cash-Apps, Invoice Processing
  • Process improvement and enhancements using quality methodology and tools
  • Drive regional operations review calls with client team.
  • Moderate and facilitate discussions to resolve conflict and issue items


Desired Skills and Experience

Unique Knowledge & Skills:
  • Strong People and Project Management skills
  • Strong delivery skills especially with complex engagements. 
  • Excellent communication, negotiation and presentation skills.
  • Excellent knowledge of General Accounting including Financial and Management Reporting.
  • Prior experience of managing a contract of 100-350 resources in the area of Accounts Payable, Accounts Receivable and General Accounting including Financial and Management Reporting.

Shift timings:
Willing to work in multiple shifts

Educational qualification:
B. Com/ ICWA/ CA

Experience:
10 -12 Yrs for ICWA/CA

ERP: 
SAP

Job Description of Manager- Finance

·         Preparing & Issuing various types of Inland & Foreign Bank Guarantees, Renew, Amendment, Release or Cancel the Bank Guarantees, maintain record of all Bank Guarantees in register and Company software, Handling Corporate Net Banking.

·       Opening Inland & Foreign Letter of Credit (LC), Buyers Credit, Trade Finance and related works, making LC Amendments, Acceptance, follow up with Bankers, Partys, Concern Dept. etc. for necessary documents, paper, clearance, payment, etc.


·         Prepare Bank Reconciliation Statement. Keeping appropriate checks on the Bank charges and interest on Loans/CC, WDCL A/c levied by banks, Handling Excess Interest Matter.

·         Making Foreign Remittance, CA Certificate, Financial Certificate, Solvency Certificate & Other Certificate depend on requirement of the Dept. for PQ for Tender, co-ordinate With CA, Auditor, Banks etc.


·         Assisting head-Finance, for making CMA data, Working capital Management, submission of CMA to Banks for availing Banking Limits, Ratio analysis, common size statement, competitors analysis, Liaising with banks and financial institutions, Corporate finance and fund raising, Consortium Meeting with Bankers.

·         Preparing & Drafting RTGS, NEFT, Fund Transfer, EFT, WCDL, FDR, CP etc.


·         Effective Management of fund based & Non-fund based limits

·         Working on Bank Account Opening and Bank Account Closing, Credit Rating on different types of Financial Instruments. Opening Company's DMAT, Trading A/c, Pledge/Unpledge Share with Custodian & also coordinate with CS Dept., Broker for operation & compliances.


·         Maintaining MIS report, handling all aspects of finance & as and when duty assigns by Superior Authority.


ROLE OF CFO UNDER COMPANIES ACT

Secction 129
If a company contravenes the provisions of this section, the managing director, the whole-time director in charge of finance, the Chief Financial Officer or any other person charged by the Board with the duty of complying with the requirements of this section and in the absence of any of the officers mentioned above, all the directors shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.


Job Description of Accounts Manager

Job Title: Accounts Manager

Qualification: CA/ICWA

Experience Should have 10 years of experience  of which at least 3 years in similar industry.

Job Description:
·       
             Internal Controls: Establish internal controls and accounting controls over the operations. Ensuring compliance with chart of accounts, accounting policies and procedures.

·         Accounts Payable : Ensuring that vendor bills and employee expense vouchers are verified and processed as per SOP and accounted within the SLAs. Ensuring SOAs are sent to vendors periodically and reconciled. Payments requests to vendors to be processed based on reconciled vendor balances. Ensuring collection and proper filing of of vendor registration details, work orders and invoices and supporting.

·         Accounts Receivable: Ensuring that sale invoices are raised on clients as per clients requirements and in compliance of tax laws.

·         Book Keeping  : Ensuring the entries posted by accounts staff are proper and posting of the same. Ensuring cost centre wise accounting. Maintenance various registers like purchase register, sales register and fixed assets register.

·         Book closure : Ensuring monthly book closure with required accruals and provisions. Matching of revenue and expenses to identify provisions /Work in progress.

·         MIS: Compile and Analyze MIS on profitability, statutory compliance and other metrics. Mapping of actual expenditure with budgeted expenditure and preparation of variance analysis.

·         Tax Planning & Compliance: Identification of taxes applicable based on nature of work and ensuring the taxes are charged, paid as per statute and returns are filed in time.

·         Facilitation of Audit : Facilitating timely completion of statutory audit and tax audit. Implementation of recommendations of internal auditors.


·         Co-ordination : Liaison with internal departments, auditors and tax consultants.