“Outsourcing CFO Services - The Next Big Reason Behind The Success of A Small Business”

For Ramesh Chandra, the wire web behind his TV set is’nt that complex. His brain is wired to unravel the web. Wiring comes naturally to him.
But what he cannot unravel is the web of finances for his growing business? For him that was an overwhelming task and that was when he decided that he didn’t want to be a chief financial officer anymore. And he isn’t a standalone case. Ramesh is one of the many growing number of small to midsize business owners who are now hiring part-time chief financial officers.

Ramesh runs an Audio and Visual Company, that’s nearly 15 years old. They also let out the equipment on rent and have a separate division for that. He had bought the company in 2006, and the company has grown many folds since then.

Initially he was processing the payroll system himself, until it all started getting too complicated and time-consuming. The bookkeeping too was getting voluminous and required a constant updation process. And then one day he got a call from a vendor about an old-due bill, which he absolutely had no clue, and no track about, and neither could he find it anywhere in his records. It was then he decided it was time for outside help.

“My projects had moved from thousands to lacs, short contracts to long contracts, and here I was busy doodling, losing my precious hours of productivity wasting away in an activity I could never master.”

“That was when I roped in Sanjay, a certified CFO by profession, with a decade of experience of working with many high profile firms. I knew had taken the most intelligent decision, because as soon as he came onboard, came years of expertise.”

Deep Detailed Analysis

“He did an in-depth analysis of the last five years and devised an array of charts and graphs which displayed our growth pattern, success ladder and also our failures. He then pointed out the exact reasons for our successes and failures. He also looked at our billing pattern, how we track our receivables and payables, and even debit/credit card purchases and then streamlined and gave solutions how best we could optimize our costs.”

“It was’nt as expensive as I thought, I never knew I could also share the costs”

Expenses are always a major governing factor for most small business owners and many decisions are based on that. I mean it’s easy to talk, but how can I afford a seasoned CFO. Typically Sanjay, gets involved with big time projects and also strategic planning that is something which is beyond the expanse of usual bookkeepers and accountants. But he balances this by leveraging his services, on a part time and at times hourly basis.

“For instance I meet Ramesh, once a week  for an entire business review, and identify any upcoming financial stress that I then resolve.” Says Sanjay

“Apart from that, I also have the system where I can log in from any remote corner in the world, and smoothly monitor the financial statements, for the week as it progresses or if it’s the month’s closing time.” He explains. When I first came to work with Ramesh, the whole finance structure was in a mess, and it took a while to get it efficient, but now the flow has gone smooth.”

Today Ramesh is a sorted businessmen, and an immensely busy man, handling five to six projects at a time, giving his full productivity. He has no fear and hassles about his finances getting mis-managed or that any of his employees or clients taking him for a ride as earlier, before he outsourced his finance services.

“The day I took this decision, I have’nt looked back since. The best part, even though Sanjay is an authority in his profession, he still gives fulI attention and thought to what I want and feel and accordingly devises a solution, benefitting the company and satisfying my vision. So I do get to have the final word. Having an intelligent and educated expert is one of the wisest decisions a small business owner can take for his/her business.”

Sanjay Runs a Firm VPS CFO Services with his other Partners Vikas and Praveen. The firm offers virtual CFO outsourcing solutions to include payroll, real time bookkeeping, payables management, receivables management, taxation, secretarial compliance including XBLR Filing, revenue assurance, internal control, internal audit etc. They provide the same quality of service, advice and support as a full-fledged in house department at a fraction of the cost.

You could contact them at cavikas@vpscfo.com.

Or send a request at request@smejoinup.com and we will be happy to connect you to them.

Image Courtesy: http://thomaskellie.com/services/cfo-controller-outsourcing/