Virtual CFO Services
As an SME grows, so does their needs, which goes beyond the capacity of business’ accountant or bookkeeper. At this point, implementation of strategic financial management and providing Advice become the foundation for growth.
Growing Companies are usually advised to appoint a Chief Financial Officer (CFO). A CFO will be able to guide the company during times of increasing complexity and risk that comes with growth. Mostly SME ignore this need and continue with the traditional outlook which does not let them experience massive growth.
Hiring a CFO can ensure that financial opportunities are look overlooked and unwanted financial focus is restrained to provide for maximum growth of the business. The bloodline of any business which is for-profit is to earn profit and build the wealth of the shareholders. The funds invested is expected to deliver a return on Investment, the responsibility of the board of directors is to ensure that this expectation is met. The board hires the management to utilize the existing resources optimally to produce the most desired results.
As a business grows, the complexities in cash-flow also grows. There are mandated laws to make tax payments on declaration of dividend, profit and other statutory levies that needs to be considered while making payments.
A CFO takes vital decision by understanding the current financial position of the business. He needs to consider legal, financial and operational implications of any strategy that is formulated. Medium and larger business that intends to expand are faced with such dilemmas, hence it becomes essentially to take calculated risk to continuing expanding without financial road blocks.
When a company grows, they start attracting provisions of tax laws that weren’t applicable initially, also other laws relating to expansion, infusion of capital, budgeting decisions and other host of legal intricacies. In such cases, not taking a decision can be hap-hazard, hence taking quick decisions to sustain the business is in the character of a CFO.
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