Entrepreneurs outsource many services for their company such as accounting, payroll etc. However, many of them are not aware that they can outsource their finance functions. Accounting firms in Dubai also provide CFO services providing businesses with access to financial experts. An outsourced CFO comes with a wide range of experiences empowering businesses with the best practices in the field.
Many businesses don’t have a CFO in their finance department. The business owners think it’s okay to fill that gap with accounting & bookkeeping professionals. However, what gets lost with such outdated thinking is the purpose of the CFO. A CFO is responsible for the strategic operations of your company. CFOs work along with the CEO handling critical tasks so that the CEO can focus on his or her core competencies. If the business is an SME or startup, an outsourced CFO makes sense instead of recruiting an in-house CFO. Let’s explore how an outsourced CFO positively impact your business.
Why Do Companies Use Outsourced CFO Services?
Be it a startup or a private equity-backed firm, there are several circumstances where outsourcing CFO services in Dubai is the best solution to many challenges the owners face. Here is a list of such critical circumstances that warrant the outsourcing of CFO services:
- You are an entrepreneur running a business that’s taking off. You have to juggle between a lot of tasks and you don’t have time for budgeting, forecasting, and analysing financial results.
- You own an SME business and you know everything about your products, services and customers. However, you don’t focus much on the financial aspects and hence make decisions based on instincts instead of relying on financial data and other objective inputs.
- You’ve succeeded in raising venture capital for your company but struggles to update your investors about profit margins, customer acquisition costs, and other key performance indicators
- Your business has been smoothly running with a one-person finance department, but he or she is quitting and is currently serving a notice period. You have a bookkeeper but you need better assistance in financial planning and analysis
- You have an in-house accountant and controller but struggles to grasp the financial statements they are preparing and presenting
- Your business is underperforming and an outsourced CFO can help you understand where it is lacking and where the action is required to bring the business on the right track
How Does an Outsourced CFO Provide Value?
Some businesses offer a product and services to support the use of that product. In such cases, the owner needs to allocate expenses appropriately between the two. A critical issue may arise when the owner doesn’t have the necessary financial information and doesn’t know the vital metrics to make a decision. If this issue persists the owner won’t be able to know whether both sides of the company are profitable.
A business owner with inadequate financial information can be compared to a person trying to decipher a critical piece of information written in a foreign language. What you need here is an expert who can interpret the data and let you take appropriate actions. That translator can begin outsourced CFO if your in-house team lacks one.
- Outsourced CFO services in Dubai add value to your business in many ways such as the following:
- Financial planning & analysis such as budgeting, forecasting, assessing long-term and short-term financing needs
- Analysing a company’s strengths & weaknesses with recommendations to improve
- Assessing the financial viability of upcoming product ideas
- A CFO analyses pricing & cost structures to improve margins
- An outsourced CFO can evaluate financial data capture and reporting systems, with suggestions for betterment
- You will get guidance on raising capital, debt/equity mix etc.
- A CFO can help you make financial presentations for the Board or investors
- If you need help with quarterly financial reporting, CFO’s can assist you
- A CFO can negotiate with a bank on your company’s behalf
- CFO can analyse merger & acquisition opportunities for your firm
How can Jitendra Chartered Accountants Help you?
Companies require CFO services in Dubai as it is vital for developing and driving the financial strategy of the firm. CFO’s are a must to perform tasks such as forecasting, budgeting, raising capital, evaluating financial data etc. SMEs and startups can have the services of a CFO by outsourcing it through the best accounting firms in Dubai such as Jitendra Chartered Accountants (JCA).
JCA is in the industry for more than 20 years and our experience can add real value to your business. JCA can perform complex financial tasks such as SWOT analysis, assessing the bargaining power of customers, suppliers, competitors etc. We can advise the CEO on the strategic issues faced by the company and ensuring the implementation of strategy at a gross-root level.
