Virtual CFO Services in India - Spend less time worrying about accounting & taxes and focus more time on what really matters.

Challenges faced by Startups and Small Businesses

Survival of the fittest is a well known theory. It suits the world of startups pretty well too.

And the startup world is a dangerous place. The competition is fierce.

More than hundred million startups have been formed throughout the world to date, and almost fifty million new ones are formed every year. However, Only half of small businesses survive the first five years of operation.

Those other half who shut down their business, mostly do so because of lack of their own business financial knowledge which leads to wrong business decisions.

Majorly wrong business decisions occurs due to unawareness about day to day business financials such as

No Optimisation of Cost of Production

Poor Cash Flow Management

Inconsistent cash flow may have a devastating effect on a firm and is the most common cause of its collapse.

Liquidity is the major concern. However, inability to generate invoices effectively and bring in enough money to pay expenses causes unpredictable costs.

Not filing Tax Returns on time

Recording your company's annual transactions is one thing; managing them, observing patterns, and submitting taxes are whole different matters entirely.

Owners of businesses strive to save money by doing this themselves. Thus, For most small businesses, the most pressing issue with taxes isn't payment, but rather compliance with the law.

Compliance costs money. As a result, small enterprises bear a greater share of the cost.

Not getting bank loans and funding

Most businesses lack sufficient working capital because they are concerned that investors would not provide larger sums of money.

Banks, on the other hand, like to see plans that are based on reality. It is possible that you could run out of money sooner than expected if you borrow less than the amount necessary.

A lack of funding may have a negative impact on any company, but it can be more damaging to smaller businesses with a lower budget.

Inability to take Right Decision due to: Non-availability of Business Analytical Reports

A lack of analytical reports will prevent a small firm from employing the right talent, setting up the business in a new market, and pursuing new possibilities.

Furthermore, Regardless of how diligent you are, you're going to get slammed with unexpected costs. At this point, you must have some sort of analytical reports to understand how you may deal with it and do not miss the expansion opportunities.

Overwhelming Financial Obligation

Having an excessive amount of corporate debt is unquestionably a problem.

Many people find themselves in this situation because they have accrued debt on personal credit cards, or because their local banking offered them a line of credit that has since been exhausted and comes with a high interest rate.

These scenarios can have long-term and short-term consequences for the organization, regardless of whatever loan instrument is used.

Neglecting to File Required Reports

All financial transactions involving a small firm must be documented, and a bookkeeper is frequently employed to do so.

Sales, costs, and earnings all go within this category. Despite the fact that private enterprises aren't obligated to divulge financial data, poor record keeping can lead to major consequences. Fraudulent tax returns can lead to penalties, interest, and even jail time if the revenue is not accurately reported.

Failure to Pay Taxes

Overpaying the Income Tax Department is a waste of time and money that may be better spent elsewhere. However, the bigger challenge is failure to pay taxes.

In order to properly file tax returns with the appropriate local, state, and national taxation authorities, as well as other governing bodies, it is critical that you disclose all of your financial transactions accurately.

There are fines and hefty penalties if you fail to pay taxes on time.

No Trend Analysis of Business Profit / Loss

Combining Business and Personal Finances

Combining corporate and personal finances is a dangerous practice that makes it harder to track cash flow and, in the long run, can hurt a company's worth.

Auditors, whether governmental or private, will perceive this as a major red flag.

All the challenges that are faced by small businesses and startups can be solved by the aid of Virtual CFO Services.

Why does every business need a CFO?

- Invoicing on real time basis
CFOs ensure customer payments must be received in whole and on schedule, and expenditures must be controlled so that the company has enough cash on hand to satisfy its financial responsibilities. The CFO does this through management of Invoicing on a real time basis.

- Doing Accounting on daily basis
Day-to-day accounting and financial operations are handled by your Chief Financial Officer (CFO). A company's financial position, including receivables, payables and inventories and payroll may be gleaned from the reports they provide.

- Bank Reconciliation
Understanding your company's financial flow, avoiding overdraft penalties, and preventing fraud are all made easier with monthly bank reconciliations.

An experienced CFO will also be responsible for managing bank reconciliation and other bookkeeping tasks since they understand your business strategy and banking relationships.

- Up to date Debtor & Creditor Balances
CFOs are responsible for managing the company's capital structure by selecting the best combination of debt, equity, and internal finance.

It is their job to keep an eye on the company's finances, and they must be conscious of financial variables like risk and liquidity while making investment decisions.

Hence, they make sure Debtor & Creditor Balances are up to date always.

-Timely filing of Tax Return
Having accurate financial results and adhering to tax duties is an indicator of a company's honesty. Tax rules and regulations can be complicated for new businesses.

Therefore, the CFO ensures timely filing of tax returns and other reports.

- Tax Planning
Along with timely filing of tax returns, the CFO interprets changes in the legislation and which judgments might be beneficial to the company.

The CFO will also examine the tax advantages of investment, capitalization, and mergers and acquisitions possibilities.

Similarly, the CFO provides tax planning resources to improve the existing tax situation and Invest in and protect your assets.

- Business Decisions based on Financial Reports
CFOs have extensive training and experience, and they may uncover several growth plans by analyzing trends and financial reports.

An experienced CFO can guarantee that your company's long-term viability is not jeopardized by overexpansion or financial shortages, allowing you to focus on growing your firm.

- Instant Financial Data available for Funding, Loans, Tenders, etc
It will be necessary for CFOs to design several action plans that take into account a variety of potential future events.

For example, CFOs need to prepare data to avail a business loan or apply for funding through pitch deck or business plan and prepare necessary documents to get tenders.

Why are Virtual CFO Services the future ?

you can see the CFO plays one of the most crucial roles in any business. The CFO can solve all the common challenges faced by startups and small businesses.

Having a CFO for your business brings a lot of value in a variety of startup firms. Moreover, not having a CFO can result in huge destruction to your business in the world of cut-throat competition.

However, not every startup can afford a traditional CFO since they are high paid experts. Besides, for many businesses having an in-office full-time CFO doesn't make sense.

Therefore, the ultimate solution for business financial needs as well as growth of your startup is having Virtual CFO Services.

With Virtual CFO, you have the same expertise for your business and unlike Full Time CFO, at very less price.

*Hire Virtual CFO- Experienced & Professional CFO at affordable costs for your business!*

Benefits of Virtual CFO Services for your business

- Expert Service unlike semi skilled accountant
Owners of small businesses must always strike a balance between looking to the past and looking to the future.

In the financial sector, accountants deal with the past, balancing records, reporting outcomes, and preparing tax returns for clients.

CFOs are in charge of planning the company's future and developing plans, projections, and paths to get there.

However, accountants might not specialize in vast fields and they can not handle all at once. Hence, it's beneficial for small businesses to have cost-effective and efficient virtual CFO Services.

- Low Cost / No Admin / office Cost
Hiring an in-office full time CEO can cost you a significant amount of money. From paying a hefty salary to CFO to additional costs of software, the CFO expense may cut out a significant chunk of your profits.

However, when you avail virtual CFO Services, the enormous volumes of data that CFOs and their teams have at their disposal are analyzed mostly via the use of technology. You don't have to pay for their software requirements, their salary, their EPF and ESIC contribution etc.

- CA and CFO under one roof
As a corporate administrator, a CA has all of the necessary abilities. Auditing and taxation are two of CA's most well-known specialties.

Furthermore, CA is equipped with all of the abilities necessary to manage a firm during the course. Hence, if you get CA and CFO under one roof through Virtual CFO services, your startup will be able to do the best work.

Moreover, if you already have a CA working for you, a CFO provides an outside perspective, based on industry expertise and understanding. Looking at the whole picture rather than just the numbers, a virtual CFO may be just what you need to achieve your financial goals.

E-StartupIndia offerings as Virtual CFO Services

Though each and every business is different and their requirements too. Our team of Virtual CFOs provide CFO Services tailored as per your needs.

Some of our most common Virtual CFO Services utilized by entrepreneurs all around the globe are as follows:

• Management of Cash Flow
• Tax Return Filing including TDS Return Filing, GST Return Filing, ITR Filing
• Private Limited Company Annual Compliances
• Financial Projections
• Budgeting and Insights at critical times of decision-making
• Bookkeeping and Accounting
• Search for Funding and Availment of Bank Loans

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