Western India Regional Council of The Institute of Chartered Accountants of India i
CA. Lalit Bajaj, Chairman WIRC
CA. Vishal P. Doshi
Vice-Chairman WIRC
CA. Murtuza Kachwala
Secretary WIRC
CA. Anand Jakhotiya
Treasurer WIRC
WIRC Office Bearers for the Year 2020-21
WIRC Members
Ex-Officio Members of WIRC
Contributors
CA. Hitesh Pomal
Chairman WICASA
CA. Priti Savla
Imm. Past Chairperson
CA. Abhijit Kelkar CA. Arpit Kabra CA. Arun Anandagiri CA. Balkishan Agarwal
CA. Chintan Patel CA. Drushti Desai CA. Jayesh Kala CA. Kamlesh Saboo CA. Manish Gadia CA. Rakesh Alshi
CA. Nihar Jambusaria CA. Aniket Talati CA. Anil Bhandari CA. Chandrashekhar Chitale CA. Dheeraj Khandelwal
Vice-President ICAI
CA. Prafulla Chhajed
Past President, ICAI
CA. Shilpa Shinagare CA. Sushrut Chitale CA. Umesh Sharma CA. Vikash Jain CA. Vimal Agrawal CA. Yashwant Kasar
CA. Tarun Ghia
CA Karan Rathi
CA. Durgesh Kabra
CA. Sunil Pandey
CA. Jay Chhaira
CA Hardik Shah
CA. Nandkishore Hegde
CA Sunil Shah
CA. Shriniwas Joshi
CA S M Ranga
Western India Regional Council of The Institute of Chartered Accountants of India i
ii Western India Regional Council of The Institute of Chartered Accountants of India
© WESTERN INDIA REGIONAL COUNCIL OF
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
Published by
CA. Lalit Bajaj, Chairman, WIRC, Western India Regional Council of
The Institute of Chartered Accountants of India,
ICAI Tower, Plot No. C-40, G Block, Opp. MCA Ground,
Next to Standard Chartered Bank, Bandra-Kurla Complex,
Bandra (East), Mumbai-400 051
Tel.: <PRESIDIO_ANONYMIZED_PHONE_NUMBER>/336 71500 • E-mail: <PRESIDIO_ANONYMIZED_EMAIL_ADDRESS> • Web.: www.wirc-icai.org
Disclaimer
Opinions expressed in this book are those of the Contributors. Western India Regional Council of The Institute
of Chartered Accountants of India, does not necessarily concur with the same.
While every care is taken to ensure the accuracy of the contents in this compilation, neither contributors nor
Western India Regional Council of The Institute of Chartered Accountants of India is liable for any inadvertent
errors or any action taken on the basis of this book.
Western India Regional Council of The Institute of Chartered Accountants of India iii
Foreword
Dear Professional colleagues,
It gives me immense pleasure to present before you the WIRC Publication on “Virtual CFO
Services”.
In the current digital age, many businesses have realigned or are in the process of realigning
their business practices. The one critical aspect that is also under the lens is that of the CFO.
As finance professionals we understand that the CFO serves a vital and indispensable role in
the functioning of a company. However, many businesses either do not have the bandwidth
to appoint a CFO or find themselves in a situation where increased number of projects amidst
tight deadlines have stretched company resources. This is where the Virtual CFO Services come
into the picture.
The virtual CFO is a concept that allows businesses of any size to benefit from the services
of a CFO without having to hire a full-time employee. The role of a Virtual CFO is to be a
forward-thinking strategist whose primary purpose is to provide strategic insight to help move
the needle forward in business. A Virtual CFO helps to provide financial intelligence that will
increase cash flow, boost profit margins and streamline business growth. No business is too
big or too small to benefit from Virtual CFO services.
At WIRC of ICAI, we ensure that members and students are always kept informed of new
professional opportunities for their professional growth and we believe that going forward this
would be a new and very lucrative vertical for Chartered Accountants.
To that end, we are proud to release this “Virtual CFO Services” publication which will go
far in guiding everyone at large on the new opportunity for our fraternity. This guide is a
proactive effort to increase awareness and highlight the critical aspects in providing the Virtual
CFO Services to a new generation of Chartered Accountants.
I acknowledge and appreciate the efforts put in by my colleague in the Regional Council
CA Chintan Patel and am grateful to the contributors viz. CA. Sunil Pandey, CA. Hardik
Shah, CA. Karan Rathi, CA Sunil Shah and CA. S. M. Ranga for sharing valuable inputs for
this publication. I also take this opportunity to thank the coordinators CA. Vandana Dodhia
and CA. Ashish Bakliwal who ensured the smooth and efficient working leading to the speedy
publishing of this guide.
I am confident that this publication will help members add to their bouquet of services and
grow the profession in new arenas in the digital age.
8th October, 2020 CA. Lalit Bajaj
Mumbai Chairman, WIRC of ICAI
iv Western India Regional Council of The Institute of Chartered Accountants of India
Preface
It gives me immense pleasure to come out with Publication on ‘Virtual CFO Services’ – an
outsourced service provider supporting small/medium size enterprises in its growth, like Chief
Financial Officer (CFO) of a large entity.
Many challenges are being faced by the organizations in terms of growth, financial aspects,
accounting as well as management. Small/medium entities and Start ups usually cannot afford
to employ a whole time Chief Financial Officer (CFO). This need has given a birth to new
concept ‘Virtual CFO’ wherein the organisation can take these services on consulting basis.
This is an emerging field for Chartered Accountants, with a tremendous potential to grow
in future. The Chartered Accountants having core expertise on accounting, taxation, finance
and experience of providing value added services including cost control and strategy advisory
can play a pivotal role in providing the services.
The publication titled as ‘Virtual’ CFO Services however it encompasses the entire gamut
of CFO services provided by way of various modes like virtual, interim, assignment based
and support services. The different types of services expected from this role, process and
methodology, reporting and various tools of providing the services are explained with
the practical aspects. At the end of the publication, the real case studies with the details of
client requirements, role outsourced as CFO and the solution provided, have been included to
provide actual insight of practical scenario.
I am thankful to all the contributors CA. Sunil Pandey, CA. Hardik Shah, CA. Karan Rathi,
CA. Sunil Shah and CA. S. M. Ranga for sharing their knowledge and experience in the
publication, and sparing their valuable time amidst Covid-19 challenges. I am also thankful
to all the members of the committee with special mention of CA. Vandana Dodhia and
CA. Ashish Bakliwal for their sincere and dedicated efforts in co-ordination and vetting so
as to ensure that the publication can be made available to the members quickly.
I am confident that this publication would be useful to the Chartered Accountants in
understanding the role and responsibilities of emerging practice avenue ‘Virtual CFO Services’
and also act as a guide during execution.
8th October, 2020 CA. Chintan N. Patel
Ahmedabad Regional Council Member
Western India Regional Council of The Institute of Chartered Accountants of India v
WESTERN INDIA REGIONAL COUNCIL OF
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
2020-21
Chairman
CA. Lalit Bajaj
Vice-Chairman
CA. Vishal Doshi
Secretary
CA. Murtuza Kachwala
Treasurer
CA. Anand Jakhotiya
Members
CA. Abhijit Kelkar CA. Arpit Kabra
CA. Arun Anandagiri CA. Balkishan Agarwal
CA. Chintan Patel CA. Drushti Desai
CA. Hitesh Pomal CA. Jayesh Kala
CA. Kamlesh Saboo CA. Manish Gadia
CA. Priti Savla CA. Shilpa Shinagare
CA. Sushrut Chitale CA. Rakesh Alshi
CA. Umesh Sharma CA. Vikash Jain
CA. Vimal Agrawal CA. Yashwant Kasar
Ex-Officio Members
CA. Nihar Jambusaria, Vice-President, ICAI
CA. Prafulla Chhajed, Past President, ICAI
CA. Aniket Talati CA. Anil Bhandari
CA. Chandrashekhar Chitale CA. Dheeraj Khandelwal
CA. Durgesh Kabra CA. Jay Chhaira
CA. Nandkishore Hegde CA. Shriniwas Joshi
CA. Tarun Ghia
vi Western India Regional Council of The Institute of Chartered Accountants of India
ACKNOWLEDGEMENT
CONTRIBUTORS
CA. Sunil Pandey
CA. Hardik Shah
CA. Karan Rathi
CA. Sunil Shah
CA. S. M. Ranga
Western India Regional Council of The Institute of Chartered Accountants of India vii
Index
Sr.
No. Particulars Pg.
No.
1 Introduction 1
2 Virtual CFO Services – How Offered and Why? 5
3 Key Results Areas (KRAs) of Virtual CFO service 12
4 Why CAs are best fit for Virtual CFO role 18
5 Methodology of providing Virtual CFO services 21
6 Fundamentals for effective Virtual CFO services 26
7 Types of Engagement 32
8 Execution by Virtual CFO Firm 37
9 Reporting and Specific areas of execution 48
10 Setting up Practice 54
11 Importance of Tools 58
12 Practical Case Studies 74
1
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
Introduction
1
2
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Introduction
Virtual CFO – A Global Scenario
In the unprecedented times that we live in, organisations are rapidly re-aligning their
business strategies. Undoubtedly, CFO is one such leader who directly contributes to
a company’s financial health and organisational strategy. The CFO function has been
evolving over the years. Finance leaders need to define the vision in terms of people,
processes, and structure and prepare them to make the shifts towards the future state.
Virtual CFO – An Indian overview
“The CA community looks after the economic health of society”
Hon. Prime Minister of India- Shri Narendra Modi
“India’s great economic boom, the arrival of the Internet and outsourcing, have broken
the wall between provincial India and the world.”
— Management Guru-Aravind Adiga
The way, in which start-ups are mushrooming in India, it has generated a huge
requirement of specialised services providers. Even the large corporates require
professional assistance in handling CFO office. The VIRTUAL CFO service is one of
such requirements. The person or Team who provides Virtual CFO services are known
as CFO Service Provider (CSP).
For start-ups, small and medium enterprises, keeping fixed costs at a low level is
a primary requirement and outsourcing services provide them with the flexibility of
choosing services as and when required and keep a tap on fixed costs. For large
corporates, the service offers professional assistance for quality performance of time
bound assignments which are non-recurring/exceptional in nature.
By large, a CSP provides expert financial assistance to these firms and companies at
affordable cost if compared with a full time CFO. Though the CSP is available for less
time in person, however he/she is available for the clients 24X7 virtually.
The CSP participates in all managerial and operational activities and provides expert
assistance at all levels to all stakeholders involved. Moreover, he works hand-in-glows
with the promoters and senior management of the Company.
In today’s ever-changing scenario the Virtual CFO Service is the best solution that
provides right financial advice and professional level execution of such needs. In
today’s fast changing marketplace, choosing a right partner like CSP helps the
Companies sustain and gain an advantage over their competitors. The expertise of
a CSP provides the best financial advice and solution for a wide range of business
issues.
3
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Virtual CFO Services – Brief overview
“No outsourcing the “soul” of the company - let’s all agree to that.
But most companies are more body than soul.”
— Steven Pearlstein
The CFO support Service as Virtual CFO is an emerging trend among the client and
financial professional.
It is a well-known fact that CXOs (CEO, CFO, COO, CMO, CRO) plays very crucial role
on driving growth, economic stability.
At times, even short-term results (that may eventually become causes of potential
failure) are too easily overlooked. In the overall organisation set up, CFOs are often
best placed within this executive group to identify and raise those risks or challenge
business assumptions at the Executive board.
Virtual CFO Service offers the best possible alternate especially in case in which
CFO is not on board, for some reason or other...
The Contemporary Chief Financial Officer (CFO) role is changing. It is becoming more
strategically focused, more value-focused and more future-focused.
The job of Modern CFOs today is more important and more complex than ever and
the role of the conventional CFO is changing dramatically.
In fact, CFOs are now expected to play diverse and challenging roles because
Pressures on CFO function by external stakeholders
• Increased regulations on finance function.
• Increased disclosure levels.
• Peer comparison by regulators.
• Increased governance and oversight; Stringent examination requirements;
Reputational risks. (by investors, regulators, creditors, auditors, etc.)
Pressures on CFO function by internal stakeholders –
• Earnings & budget pressures; Scarce resources and skills.
• Inefficient business and processes.
• Internal coordination challenges; Inadequate decision support; Technological
limitations; Need of increased system scalability. (by business executives,
management, promoters, etc.)
Over and above providing services at par with regular CFO as ‘the steward’, the CSP
also offers the role of ‘the Strategist’ by providing direction to build the business
model and imbibe the financial culture and discipline.
4
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Business owners very often face the problem when a regular CFO is not on board
or at times, it is not cost effective to appoint an in-house CFO on a full-time basis.
Virtual CFO Services are the best solution in such situations.
Virtual CFO services empower clients to get assistance from CSP at an attractive price
point with a perfect blend of professional acumen, vision, leadership, performance &
integrity.
The CSP will enable business in resolving all the issues that leadership teams face
financially, and eliminating the sources of financial crises, while also protecting the
accounting integrity.
Clients who are looking for professional assistance for their small to midsize business
will get the expert virtual CFO service fulfilling all their business needs.
Even the larger corporates, having full time CFO working with them, may take virtual
CFO services for their Subsidiary/Joint Ventures and CFO support services for their
existing CFO offices.
CFO Service Provider (CSP)
A CFO Service Provider (CSP) is an individual or an entity compromising professionals
offering Virtual CFO Services as a Team.
Virtual CFO services are not limited to dealing with numbers. CSP works as a
mentor with HODs helping them in agile decision making, scenario planning, and
decentralized decision making. Rather than being fully focused on numbers, budgets,
and reports, CSPs are adopting a much broader approach which is changing the way
they add value to their business. As well as managing finances, today’s CSPs are
increasingly expected to provide guidance and advice to the CEO and board on a
range of other issues
CSPs are focusing on whether a company’s business model and financial processes are
fit for purpose today and, more importantly, if it is fit for the future goals.
CSPs are backed by experience, resources such as manpower, IT systems, office
infrastructure, communications tools and most importantly having his entire team with
diversified work experience to support his assignment as Virtual CFO.
“The shared CFO services provide a broader point of view
to the businesses and help stabilize the system fast.
Also, it is not a permanent cost on P&L and Balance sheet”
— Kailash Gupta, CFO, INOX, an entertainment multiplex company.
5
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
Virtual CFO Services –
How Offffered and Why?
5
6
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Virtual CFO Services – Offered as
Virtual CFO
Also known as “Outsourced CFO”/“Shared CFO Services”
Virtual CFO services are provided to the businesses who have not appointed an inhouse
CFO (Chief Financial Officer).
It offers an immediate solution to the acute problems of Entrepreneurs/business
entities at the initial stage of business towards business financial planning, setting up
of accounts/finance department and Management Information System (MIS).
During upgrade/change over/exit stage of running businesses, with the advice &
execution support of Virtual CFO Services providers, the business challenges are
handled most effectively by availing their financial and professional advice, analysis,
and support to the management in any concern area not limited to the finance
department but business as a whole.
CFO is a recognized management authority which is sometimes out of budget for
small enterprises, start-ups, and SMEs. Therefore, there is a requirement to have a
virtual CFO.
It is a way for small businesses to get CFO support that they would have not been
able to afford previously.
Interim CFO
At times, the business operations face big problem when the existing CFO suddenly
quits/not available for long period due to any reason such as medical or personal.
As alternate to replacing with best fit candidate; risk of losing precious time may
eventually results into business loss; in such times Virtual CFO services should be
availed as entity’s Interim CFO.
Interim CFO not only handles role of the CFO but also helps the stakeholder to
handpick the best suitable candidate for the job. Virtual CFO services as Interim CFO,
offers the best alternate solution during change of seniors in CFO office. Many a
times, on one hand, entities need the best fit candidate to take charge immediately
but on other hand, the candidate may not be in position to join immediately due
to his ongoing service commitments or serving notice period as per his terms
of engagement. Services as Interim CFO by Virtual CFO not only ensure smooth
functioning of the accounts/finance department but also provide an opportunity to
identify the gaps/improvement required in the account/finance departments and
provide professional assistance for resolving such gaps.
7
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Special Purpose/Assignment based Support Services for CFO
There may be times when the organisation is handling multiple projects at the same
time. This can put immense pressure on existing CFO, who may find it increasingly
difficult to do justice to all the projects. Instead of spreading your CFO too thin, get
him/her some help from CFO Services Provider (CSP).
CSP steps in as a ‘Special Purpose CFO’ for a limited period, till the time the company
requires its help. The CSP works in tandem with your existing senior management
team and your full time CFO to expedite and execute these multiple projects with
great efficiency.
Support Services for CFO function
In case of a corporate having its full time CFO but in turn, requires support to
facilitate his office bearers to set up/manage specific functions, Virtual CFO services
provide ample of services to provide optimum support to the CFO. Here, the CSP shall
report to the CFO of the company and may not the board.
8
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Virtual CFO Services- Why?
Why Virtual CFO and not full time CFOs
Do what you do the best, outsource the rest.
— Peter Drucker
More Independence:
Being a consultant and not an employee, helps in being more independent and
straight to guide and navigate the management as per desired objective without
being fearful.
All Skills and Experience is Covered:
CSP is a team of professionals. No single person can have all the required skills over
time. With the help of a CSP, Organisation will benefit beyond the experience of a
person only as a service.
Multiple Advantages of working with a team not an individual CFO. If a company
is considering hiring a full time CFO; it makes use of the knowledge of a single
professional person which in most cases is limited. However, a CSP comprises a team
of experienced professionals, each one of them with his/her own expertise.
Continuity & Stability:
CSP being a professional firm can offer stability. CSP will help maintain the continuity
of working with the trusted resources over the long term.
No Geographic Limitations:
Clients can engage a service outside the region; there are no geographical boundaries
set for a CSP.
Superior Resource at Reasonable Cost:
Company to have financial management that is experienced, skilled, insightful, and
able to see the big picture with multiple domain strength. That kind of talent is
expensive. But companies do not need access to that kind of talent every day. Virtual
CFO services means Organisation can have the quality talent resource at affordable
cost.
The biggest challenge for start-ups and small and medium enterprises is to keep a
tab on their fixed costs. Since full time experienced CFO is not available at low costs,
hiring a CSP helps running business with budgets. Virtual CFO services offer value for
money than hiring a full time CFO could.
9
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Trust & Candour:
In Virtual CFO service; the role of CFO is played by professional who are focused
on the need of the hour. Unlike the employee, he has no competing agenda, not
guarded to his comment or need to be ‘the yes man’. The CSP brings on board the
third eye to have right perspective and views from trusted, credible & experienced
professional team backed by their vast experience and diversity.
Flexible and Ease from Headache as Employer:
A major advantage of hiring A virtual CFO is that it offers flexibility. Today, most CSP
permit their clients to set the number of hours depending on their requirements. This
means the companies only pay for what they need.
Also, Virtual CFO services means less headache to hire a full-time employee. At times,
CSP also offers services of very senior professionals who are not open for employment
but can render best guidance/services to the client. A CSP also means no permanent
commitment of employment. The relationship lasts only as long as it makes sense for
organisation
Absence of Virtual CFO- Impact
The organisations which have no CFO on board or need to support CFO office, are
vulnerable to the following risk, if they opt not to hire Virtual CFO at right stage and
right time.
• Missed opportunities for business
• Lack of adequate control system, Unproductive and weak processes
• Faulty transition from existing system to new system.
• Waste resources, time, and effort.
• Loss of stakeholders, investor, and client confidence.
• Lack of critical resources at times of need.
• Exposure to unnecessary legal or tax risks.
Virtual CFO Services can be offered
Indian business environment has distinct features. MSME/Start-up go through
multiple challenges, the majority of which are even unknown to them. While growing
businesses with these challenges is an Entrepreneurial spirit but the same strength
becomes a critical roadblock for its next level of growth.
That’s the reason very few MSME graduate into Corporate.
10
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Here is broad list of issues which affects majority of the Organisation in the Indian
environment (with some exceptions)
• Promoter driven; without defined strategy or road map
• Highly dependent on 1-2 key person
• Inadequate risk management system and control
• Decision making done more on gut/ad-hoc (without analysis/evaluation/cost
benefit)
• Unstructured; Organization are continuously in crisis management mode
• Lack of Optimum utilization of available resources
• Diversification at early stage leading to shortage of resources
• Over leveraged; too much dependent on Debt
• Sometimes, Prioritization against Organisation objectives
• Lack/low understanding on Accounts – Tax – Finances – Legal and commercial
capability within the Organisation
• Supported by multiple consultants; but lacks advisor to the board
All these are key roadblock to SME growth; if the CSP don’t enter at the right stage
in an organisation along with openness of management to take right and tough calls
to navigate the organization as per business plans and strategy.
MSME/Start-ups/Corporate
The CSP will bring under mentioned capabilities with him to deliver value for an
MSME or a Start-up:
• Attracting the right talent of a CFO is very difficult for MSME (with 15-20 years
of diversified experience and multi-dimensional capability). Further retaining such
talent is even more difficult till organization matures
• Brings in credibility – trust and network much needed for organisation at this
stage
• Management not only need a professional but a coach and guide to navigate
to next level – playing a mentorship role
• Assurance of capability since continuous performance is the key to service.
11
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
• A right source to support in attracting/identifying talent in various domain and
functions required for an organization
• If introduced at right time; amateurs will not become powerful creating
roadblock for future/professionals
• Has the capability and network to identify and resolve any kind of Organisational
issues
• Dynamic enough to influence Operational decision-making process
• Execution ownership with extensive hand holding - approach to deliver value
12
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
Key Results Areas (KRAs) of
Virtual CFO service
12
13
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Services during Business Life Cycle
Strategy
Formulation
Transaction
&
Commercial
Support
Achievement
of Goals
Improved
Decision
Making
Finance &
Accounts
Policies &
Controls
Virtual
CFO
Strategy Formulation
Normally entities do not have detailed strategy in place when they have begun
the operations. They have a product line to build or an idea to develop. All these
processes are fine at the initial stage but during the growth phase if strategy is not
defined/documented, it can lead to multiple issues. Some of these strategies are
defined in early growth stage and some during growth phase of business as the need
arises, Virtual CFO support in:
• Identifying the SWOT of Entrepreneur/Business
• Defining Core and Non-Core area (what to do and what not to do)
• Defining next 3-5 years Business Plan
• Developing, defining, and implementing Matrix
• Planning and implementing future Organisation Structure
• Allocation of resources for next 3-5 years
• Creating an informal Board for all Strategic Decisions
14
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Policies & Procedures
Implement critical policies and process in
• Fund management
• Procurement to Pay Process
• HR and manpower (leave – travel – authority/responsibility matrix)
• Order to Cash process
• Forex management
• Implementation of IF – RCM
• Identification and implementation of ERP
• Policies on IT controls and mechanism
• Key Trade Policy (CD/Dealer )
• Implementing critical SOPs
Finance & Accounts
• Monthly and periodic Profitability and Balance Sheet review
• Monitoring and controlling Cash flows
• Review of Operational MIS/Departmental MIS
• Conducting Inter Departmental MIS meeting – Guiding the team and building
accountability
• Budgeting and Costing Implementation
• Efficient fund raising for various needs Working capital/term loans/project
funding/non fund-based limits/structured funding/off Balance Sheet funding
• Banking & Institution management
• Inventory control and integration with accounts
• Improving the External Credit rating
• Evaluation of an Opportunity (JV – PE – strategic - long term contract – IPO –
M&A transaction) and supporting the process
• Resolution of any legal – commercial - accounting – tax matter
15
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
• Engaging and defining the role of various consultants
• Implement Best practices for creating long term value for the Organisation
• Defining job profile and KRA of finance and accounts team
• Accounting as per Indian GAAP
• Timely compliances
Transaction Support
• IPO Support
• Merger/Acquisition/Restructuring Support
• Due Diligence support
• Migration of F & A Software
• Identification and Implementation of ERP
• Internal Audit
• Critical fund raising
• Emergency hand holding of any function or task
• Deal making/Valuation/Critical Agreements
Commercial/General Support
• Support in Improving Cash flow from Operations
• Participating and adding value in non-routine business decision/large business
contract/commercial negotiation and structuring
• Negotiating any deal
• Support in improving the Decision-Making Process
• Review of critical candidates and supporting sourcing of key manpower
• Support in Planning and building second line for critical manpower across
functions
• Business and Financial DD
• Take additional responsibility as per need (ERP – New Project/Expansion)
• Focus on profit/operations/cash flow improvement on defined metrics
16
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Board Reporting/Group Reporting
We cannot stress enough the importance of systematic and efficient management
reporting. These reports that are generated help the board take the right business
decisions, helps boost business’s performance and enables good governance not only
that but it also helps improve investor confidence. CSP can help analyse and generate
in-depth reports for business.
Board/Group reporting is an attempt to update the financial reporting process.
Bankers/Financial Institutions
Bankers/Financial Institutions or investors can avail the services of the CSP for
evaluation of their finance debtors and at the time of obtaining control over
operations of the defaulting clients. The CSP can take over the finance function of
the defaulting entity at the time of obtaining control of the entity. The CSP can also
assist in realising tangible/intangible assets and manage liabilities.
Venture Capital Funds/PE Investors
No investors would want their investment to go bad. Hence, the private equity
investors or venture capitalists hire these services to run the business-like professionals
and in a structured way -- with proper financial reporting, discipline, and corporate
governance. They outsource these services for them to play the role of finance
controller.
CSP works in full tandem with Promoters and HOD’s as friend Philosopher & Guide.
Exit Strategy
After Organisations have built an excellent business. Now how do they exit, encashing
all the hard work they have put in, at the right time?
Planning & strategizing for exit is equally important as starting an Organisation. The
goal is to maximize the value of Organisation before converting it into cash, and to
close the exit transaction as quickly & smoothly as possible.
While there are different exit strategies that entrepreneurs adopt, identifying what is
best for Organisation and executing it seamlessly is important. All exit opportunities
require the Organisation to go through a detailed due diligence process, undertake
several rounds of smart negotiation on valuation & pay out terms and finally ensuring
that in the process Organisation & clients do not leave each other.
The CSP steps in and assists companies as strategic partners at every stage in
decision making, as well as in executing various requirements. The CSP also assists
companies in identifying the right accountant, lawyer, investment banker and any
other deal advisor required to successfully close the transaction, at the earliest, with
least transaction cost.
17
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
M & A Support & Consulting
Whether organisations are considering the launch of a new product, expanding
operations, evaluating an exit strategy or acquiring another business to help achieve
Organisation growth objectives, the CSP is the source for expert assistance in
preparing for the transaction or evaluating possible options.
The CSP’s team will provide insights and guidance instrumental to the organization
so that organisations have the support they need to successfully navigate a transition.
The CSP (support M&A team) evaluates their options for growth or sets the stage for
a successful exit. When working with a corporate finance consultant from the CSP,
Organisation will receive the assistance before, during and after the transaction to
increase value and mitigate risks.
Independent Directors/Insolvency Professionals Agencies (IPAs)
A CSP can be a great support to an Independent Director especially the one who is
not having a finance background.
A CSP can offer the following services to IPAs
• Prepare/Rearrange the financial data of Organisation as per Law
• Prepare and Validate Solvency plan
• Execution support of solvency plan
• Periodic reporting to IPAs/KNELT
The various laws require reinstatement of financials or classification of financials asset/
liabilities in a way. For e.g.
• Indian Bankruptcy Code (IBC) requires classifying the sundry creditors as per
waterfall method for setting up payment priority tracker.
• Recent modification under IBC code needs professional advice for Organisation
to decide the default in payment occurred on or before a specific date
18
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
Why CAs are best fifit for
Virtual CFO role
18
19
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Why CAs are best fit for Virtual CFO role
The chief financial officer (CFO) is increasingly being viewed as a business leader
rather than a functional head. The CFO’s role has evolved beyond bookkeeping to a
holistic business and governance accountability, ensuring that the organisation is on
track to achieving its short-and long-term goals.
Beyond financial analysis and stewardship, a CFO is constantly faced with growing
responsibilities and an evolving mandate, coercing him to move from behind the
scenes to the front. His role includes setting operational and commercial strategy,
navigating the company safely through tighter credit markets, looking at capital
allocation, debating with the CEO, dealing with external stakeholders and, at times,
fronting shareholders’ meetings.
Even in cases where a CFO does not hold board positions, he is increasingly called
upon to provide expert advice to support boardroom decisions.
While this is more apparent in Medium Size Listed companies, it is also percolating
to the mid-cap as well as unlisted organisations, where a CFO is required to be a
sparring partner.
This shift provides senior Chartered Accountants opportunity to develop as the
potential CFO — the pinnacle of many financial executives’ careers
However, such financial executives need to garner skills that enable them to deal with
a dynamic regulatory environment, whilst fostering continued business growth.
During any of these, a qualified professional, who may not be open to be engaged
for ‘Contract of service’, can very conveniently assign for ‘Contract for services’ as
professional to render Virtual CFO services.
Along with domain expertise as Supreme profession in field of Accounts and Finance,
the Virtual chief financial Service Provider (CSP) should be expert at:
• Being an effective organizational leader
• Effective allocation of the existing resources
• Ensuring best co-ordination of finance department with other department
• Managing the responsibilities of stewardship with stakeholders.
• Acting as integrator and navigator for the organization.
A Chartered Accountant (CA) with following skills can be considered as preferred
option to render services as the Virtual chief financial Service Provider (CSP).
• Financial Foresight
20
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
• Accounting & Financial Expertise
• Has ability to understand Business
• Result Oriented Nature: resolve issues and implement solutions
• Self-driven & Proactive
• Experience of Multiple ERPs or equivalent IT platforms
• Confidence, Vision & Foresight
• Excellent Communication & People Skills
• Leadership Skills
• Strong network of experts across the board
To effectively Delivery services as the CSP, the CAs must consider that
• This is not a compliance or audit function but a business function (Execution)
• Not only gap/issue finding but finding solutions, implementing solutions and
resolving matter
• Proficiency to work on multiple ERPs and good understanding of financial
software can be of immense help
• Continuous knowledge update and upgrade is very crucial
• Leadership Role is must have characteristic of the CSP
• Strong interpersonal and people skills can be a great tool
• Communication strength both oral and written is the essence of Virtual CFO
services
• Crisis management capability are very important feature of this services
• Ability to understand business and all major functional are key requirements for
most of the assignments
• Awareness about Economy and capital markets developments will also be helpful
• Networking with experts/across the board; and ability to take their support as
and when required is soft skill which can also be developed along with Virtual
CFO practise Development
• Ownership driven mind set is must
• Self-driven – Proactive and less reactive approach is generally much acclaimed
by the clients
21
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
Methodology of providing
Virtual CFO services
21
22
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
22
Methodology
For everything we don’t like to do, there is someone out who’s really good at it,
wants to do it and will enjoy it.
— Josh Kaufman
Management is doing things right; leadership is doing right things.
— Peter Drucker
This section elaborates on “How” part of CFO services and will answer:
• What are basic execution processes of CFO services?
• Fundamentals (Prerequisites) to methodologies
• Organisation structure of CFO Services Provider (CSP) firm
• Executions in different segments/sectors
• How can a CA in practice or industry (Job) can start and grow this practise?
• International executions
Figure 1 Basic execution process
Defining Role
Defining a role for a particular engagement under due discussion with management
is critical for drawing detailed execution methodologies, resource allocation and
reporting patterns. Following are a few basic parameters related with nature of
engagement with CSP/Virtual CFO.
23
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Figure 2 Nature of engagement
Strategy Facilitator
Both CFO positions and services are strategic in nature although maintaining
controlled routines of the business is one of the first strategic aspects, through
People/Process & Strategies.
For example, The CSP can help in setting business goals and objectives & creating
strategies to achieve them. It also
1) Helps in tracking Organisation’s business performance and while undertaking
regular reviews, take corrective actions if required, mostly known as budgeting
function. In majority cases, the mature budgeting process is non-existent. One
can visualise the kind effect, which can be created.
2) Helps in optimum resource allocations - be it funding, manpower, or technology.
Creating policies and processes around it to fetch structural strength.
3) Helps in Fund Raising
a. Framing Strategies
b. Executing Fund Raising Strategies
c. Recurring Compliances Management
Other Strategic inputs are to benchmark existing Business plans and helping
organisations to discover achievable new business plans.
24
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
It all begins with a brainstorming session with the promoters and organisation’s
senior management team. Thereafter, a detailed research process will be carried out
about companies, products/services, industry leaders and competition to build the
foundation of the business plan. The plan is supplemented with detailed financials,
including sensitivity scenarios and ratio analysis. CSP also designs a version of the
financial model for Organisation to track on a regular basis, as per organisation’s
working budget file.
Building diversification/expansion strategies for the group can be another strategic
execution. In most of the cases, there are many things in the minds of promoters
and HOD’s but solidarity of CSP (as he/she is experienced senior professional from
the same domain working with many such companies) gives strength and helps
crystallisation of action plans. CSP reviews suggest changes and update on such
propositions appropriately. CSP could even strengthen it with a detailed financial
forecast model.
VIRTUAL CFO SERVICE is the best option for any given situation, whether new lines
of business are being considered or expansion is being planned. In most of the
cases, existing bandwidth is already utilised, and domain knowledge of new business
becomes critical inputs for such diversification planning. VIRTUAL CFO SERVICE
becomes better options.
Mentor, Coach and Friend
Generally, in any organisation CFO’s are chief facilitating officers only. CSP’s position
is of Coach to captains (HOD’s) and Promoter, even though deliverables are there.
Virtual CFO as a Coach ensures that a capable and motivated team is there and
working in tandem for organisational goals. CSP coaches them well and always there
but is never a captain. This must be properly understood by all in the team. As a
goal post for such VIRTUAL CFO SERVICE may keep changing. That’s why having 5-6
deliverables for a quarter is a better method of working.
It is very critical for CSP and his team to be culturally fit with the client organisation.
‘Execution’ is the most essential element of this service which is much more advanced
than advisory services. For the optimum output, stepping into shoes of the client
culture is very important for CSP and his team.
Result Oriented Approach
VIRTUAL CFO SERVICE is not there to retain its position but to deliver on specific
deliverables within a specified time. Manpower planning for such specified objectives
along with clear progression plans is the key. Restructuring plans, financing,
MIS/SOP, ERP implementation, etc. are time bound executions. Weekly updates to
team and monthly review discussions are tools to gather more support. But at the
25
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
end, only results are to be counted. Efforts counting becomes excuses if results are
not achieved. In certain circumstances, sometime over run may be possible but there
should be absolute clarity about results. It becomes binary to that extent. And this is
not different from anything any professional does in practice.
Return on investment in CSP not only in terms of professional fees but also time
is critical for reporting and even engaging initially. This separates many other
engagements with senior consultants, mostly on the compliance side. Engagement is
strategic in nature and has a vision to bring great changes to the organisation without
disturbing basic fabric structure of organisation. Measurability of contributions and its
concurrent reporting structure is integral part of the engagement.
Project Specific Association/Long-term Advantage to the client
Even though first Association could be in terms of very specific deliverables and
that too from short term Association perspective but the kind of capability VIRTUAL
CFO SERVICE brings to the organization, the idea is to be with the organization on
all strategic levels for a long-term purpose. Most of the time Virtual CFO Service
provider has this intention to be on the Advisory Board of the organization and
keep on coaching, monitoring, advising the organisation team for greater growth
and sustainable business model of the organization. In case of association with SME
where most of the professional fee is linked with success, CSP may be giving a vision
of 3X to 5X growth to the organisation and proposes to achieve it in solidarity,
equity proposition as professional fees is most likely. Idea is to be one of the critical
resources with the company for such targeted growth in turnover, profit and valuation.
SME listing, PE investment, etc. are events when VIRTUAL CFO SERVICE equity in the
organisation gets crystallised.
The idea is to be with origination on a long-term basis building business on
sustainable basis. Although specific deliverables within specified times are still the
rule of the game.
26
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
Fundamentals for effffective
Virtual CFO services
26
27
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Fundamentals
Figure 3 Fundamentals of VIRTUAL CFO SERVICE
Domain Specific Expertise
Domain specific expertise is a key to CFO Service. It may be both functional domain
expertise and industry domain expertise. The leader and manager should be coming
from the domain and should be speaking the same language which the Head of
Department’s (HOD) and promoters are speaking. It is essential for initial pitch as
well as detailed execution of the assignment. A senior CFO level experience from a
specific domain is what attracts a team and promoter for having him/her on board.
Thus a 12 to 15 years’ experience on the part of CSP leader becomes the essentials
for CFO Service. Brand name, Track records, mature process may help as supplements,
but every client wishes to engage with someone who is known in the industry has
already been exposed to a volume of transactions.
Senior Industry Professionals Team Building Is Key to Growth for VIRTUAL CFO
SERVICE
This becomes a key growth driver. A VIRTUAL CFO SERVICE firm capable of engaging
senior industry professionals with it, will have better chances to grow. Engaging/
28
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
28
Associating senior professionals coming from good brands is not an easy task because
they have better opportunities in terms of earning with corporates. Something very
exciting should be on the table to attract such senior industry professionals as
CSP firms may not be able to hire them at comparable cost. In most VIRTUAL CFO
SERVICE assignments, such industry professionals are offered performance linked
incentives which are substantial part of his earnings. They become stakeholder in
client specific engagements. One engagement of such a senior professional with a
CSP firm can lead to another because of precedence.
Detailed and sophisticated processes are required for engaging with such senior
industry professionals as most of the time such professionals may not like rigorous
reporting processes. The key thing is that they must be enjoying the assignment.
Clarity on Business Development (BD) activities and processes should be separated
from only execution-oriented assignments. Many of CSP firms try to carve out these
two parts in a clear manner. BD process for a VIRTUAL CFO SERVICE leader is delinked
with execution assignment to avoid future competition. However, there is a CFO
services platform evolving which allows senior industry professionals to build their own
vertical, to bring clients and get them executed according to laid down processes.
This gives scalability to the idea. On an average, per client targeted revenue for the
year ranges from Rs.50 Lakhs to Rs.1 Crore. Having equity in a client’s business is an
added attraction.
People, Process, Strategy are Fundamental for Execution Strategy
People, process and strategy are fundamental things for any strategic execution, while
as” People” are mostly 90% of everything. Manpower Planning (MP) according to the
business vision/plan is first and foremost and then having it at its best of productivity
is another key thing. MP in Finance & Account (F&A) function is one of the most
deserving aspects to deal with. One’s recruitment at a key position can change the
whole game around productivity of the department. Other processes around people
management are then to be worked upon in other departments as well depending
upon scope of work with the organisation. Engaging with the HR team is one of the
first imperatives. Understanding basics of Delegation of Authority, Unity of Command,
Job Description clarity at every level, Reporting Formats and Patterns, Training and
Incentive process, Organisation Development, Performance Assessment mechanism at
every level etc. are to be analysed for improvements.
Processes are the next big thing to deal with. MIS/SOP at every level to be analysed
to make it more effective, starting with the F & A Department. Utilisation of software
/ERP systems is the next important thing to establish for long term sustainability.
Initiatives are to be taken for shifting people centric organisation to process driven.
Processing yields results should be the mantra. Benchmarking processes against the
best of industry is one of the tools of improvisation.
29
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Strategies are different from regular plans and aim at beating competition. Processes
should be built to incentivise, innovations and tech adoptions at all levels. Monthly
discussion process, across all levels of organisation, on strategy aspects should be
discovered and monitored. Coordination amongst HOD’s and promoters becomes a
unique area of contribution for VIRTUAL CFO SERVICE. Industry domain knowledge
works very well.
Technology Led
There are huge expectation gaps when it comes to technology, everywhere. On the
one hand VIRTUAL CFO SERVICE needs to put all its execution, technology led and
must ensure that technology finds a Centre Stage of overall business of the client.
Even if CSP is not a software expert technically but he needs to be updated of all
new technology updations relevant for the business. We are living in a scenario where:
• Utilisation of basic accounting software like Tally.ERP9 is still to be achieved,
mostly because lack of proper training and motivation level in accounting team
• We have multiple software in the organisation being used in different
department for their different usage, still to be integrated with accounting
system
• ERP software is partially implemented for few of modules and reports are still
to be automated
• Data integrity fetched by this multiple software is still an issue
• A lot of organisation efforts are put every month across department for
reconciliation of data
• History of failed software implementation is hounding everyone in the
organisation
• Software literacy on overall organisation level, particularly at management level
is very low
CSP may be required to guide organisation on
• Which software to used and which to forgo taking everybody in the organisation
in confidence
• Implement ERP and integrate multiple other software
• Integration of software with accounting system
• Benchmarking & Business Intelligence (BI)
• How AI/Block chain/Robotics are going to disrupt the way industry operates and
how organisation should be adjusting to it
30
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
To be able to guide organisations, CSP needs to update on tech aspects in every
aspect of the client domain along with functional domain. Even MS planner type fee
software utilisation can bring magnificent changes to organisation. To be able to do
this, Virtual CFO should have a strong learning process at their end.
Apart from above, CSP organisation needs to be working through tech led
processes. Resource allocations, day/week planning, daily updating, weekly reporting,
and monthly meeting require a simple but robust tech/template driven process.
Technology should be used to make data available in such a way that it could pop
up opportunities for other teams. Regular meetings can be planned amongst different
leaders on assignments to discover cross pitching opportunities.
Template/Formats Driven Execution Approach:
One cannot scale up and delegate properly if mature template driven execution
is not there. Most of the inputs gathering should be done on standard template
basis. It starts with data gathering at the time of assessment of clients before such
VIRTUAL CFO SERVICE engagements. Most of the requirements like Client corporate
profile, internet profile (URL), Last year balance sheet, Current year projections, Group
structure, Group Finance profile, Enterprise Data are required at first place to start
engagement.
These templates are equally important when it comes to internal communication
within CSP firms.
Collaboration Across Geographies
We are living in a virtual world, where what does not exist in the virtual world, does
not actually exist. The same is true for any CSP firm also. In many of the situations
when you are connected with the world across geographies, which provides for
chances of having clients in diversified geographies, not only within the country but
also across the globe. It gives birth to the necessities of having collaboration with
senior professionals across geographies having experience in functional as well as
industry domains. Networking, Association, Processes are required to uphold the whole
system for execution across geography. Added advantage is that you can always
leverage on many capabilities across geographies (clients, capital, demand, people,
etc.). Foreign currency billing becomes an absolute attraction for an Indian VIRTUAL
CFO SERVICE. 60+ countries in Africa continent and south-east Asian countries are
obvious opportunities apart from USA, EUROPE and GULF countries.
Network of professionals (app based), Collaboration with other countries local firms,
Reverse collaborations are different models of collaboration across geographies.
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Business Building Approach
One of the cores on which CFO service practice is developed, aims at supporting
promoters and HOD’s for building sustainable businesses and being with them for
executions. Every action/result is measured in terms of its impact on sales, cost,
profit, and valuation of the businesses. This approach brings magnificent changes to
businesses where businesses are delinked from building balance sheets and provides
mind space to both promoters and HOD’s for growth and innovations.
Senior experienced person from the same industry domain brings a lot of experiences
to the organisation’s team in the form of DO’s and Don’ts and saves a lot of
organisation time to be deployed in decision making processes and executions. For
example, any organisations wanting to decide on ERP suitable for organisation and its
people culture. A mature VIRTUAL CFO SERVICE support in this decision will save a lot
of total organisation time/efforts and cost. The same holds true for an organisation’s
decision about going public. A person with iterated experience and a lot of learning’s
from previous failure is a precious resource in the form of CSP. Here lies opportunity
on the part of VIRTUAL CFO, of participating in mutual wealth creation in the form
of sweat equity.
Coach v/s Captain
A VIRTUAL CFO is inherently a coach working with the team and ensuring
performance through them. He should not be misunderstood as captain and CSP
should make all its efforts to put this perspective to the overall team. HOD’s are
captains. He works through Captain and works as a proxy to the captain. Although he
is responsible for agreed deliverables but most of the time the same shall be achieved
through existing team only. In very few cases, situations may be different where CSP
is appointed to perform a specialised job and lead organisation team within a limited
time frame corporate restructuring. Most of the time, he performs orchestra and
ensures symphony of music coming out of different instruments.
Build, Operate, Improvise and Transfer Model
VIRTUAL CFO’s engagement is to work as an extended team to organisation and lead
on strategic assignments of strategic importance. As a basic essence of engagement
is to initiate things through additional resources and then incorporate the same in
the regular working culture of the organisation, gradually to be done only by the
organisation internal team and CSP might be engaging in other assignments of more
strategic importance. For example: Feeding initial data by the CSP team in a recently
introduced module of ERP, processing it through the whole flow of it, reconciling it
and then letting the automated reports come out of it. There after training about
these processes of the internal team of organisation, hand holding it for some time
and then handing over the responsibility of execution to internal team leader.
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
Types of Engagement
32
33
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Types of Engagement:
Onsite
This is a scenario where Virtual CFO Service Provider is planning to visit client office/
branch office, etc. on a regular basis for different workings. In any assignment, this is
more required during the initial phase of engagements. Gradually most of the things
are doable from VIRTUAL CFO Service’s own office. Of course, weekly meeting routines
with client teams yield better results. A separate working space is ensured for the CSP
team. Project/factory/warehouse visits are done along with the client’s team to gain
better understanding. Generally, trainees are regularly deployed at client office and
managers are frequent in going to such client office. A CSP leader’s weekly or twice a
week visit is planned in such a scenario. In case of distant geography, 3 days monthly
visit is planned to sum up on reporting and coordination. Initially it’s twice a month
3-4 day visit to the client office.
Offsite
After initial detailed engagement with the client team, many of the executions are
routine works that are possible from off location either from CSP’s own office or from
other client location, managers are shared across client engagements.
Other than above, in this virtual world where most accounts/finance executions
are possible, there can be scenarios where everything is possible off site, mostly
for compliance and procedural assignments. Although greater maturity at every
level is required for off site working, reporting and coordination process should be
transparent at every level.
Hybrid
In our view almost all such VIRTUAL CFO SERVICE engagements are hybrid of both
above methods with different degrees and levels. Initially every assignment requires
gross engagements and gradually it starts giving way to offsite working. Important
point is clear communication of these on sites/off site execution processes to all team
members of clients including HOD’s and promoters. Weekly reporting in person gives
a lot of comfort else weekly conference/video calls are an option.
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
34
Categories of VIRTUAL CFO/CSP
Lending a CFO (who shall be working as Interim CFO for a short period of time)
Organisation may request CSP firm to help company appointing regular CFO or
seeking it from CSP firm itself. CSP firm will be billing for such accommodation of
CFO lending to organisations. Such CFO shall be working as CFO on contract basis. He
shall be abiding normal office routine and shall be responsible for day today working
of the organisation. A monthly charge will be fixed for such providence. Generally, this
is for the short term and can also be renewable.
Supporting Permanent CFO on SOS Basis
Every permanent CFO, when working on 3 key priorities of the organisation, has 10
other such important things, still to be initiated and executed and best part is only he
knows it that these 10 things are equally critical. And these 10 assignments are long
due now. The question is “bandwidth”. Both problems and opportunities may make
current bandwidth of a CFO redundant and flexibility is required to deal with it. In
such scenario, some part of it, he manages through outsourcing it to some experts
(consultants) but it becomes bit costly affair and still such permanent CFO has always
wanting shadow support system in the form of VIRTUAL CFO SERVICE where leaders
come from the same background and speaks the same language. Cost of engagement
is any time much lower comfort is anytime higher. Mostly fee commitment is on the
success. Gradually such shadow association will be the norm.
Executions Support to Other Sectors (Other Than Corporates)
CFO services are even more relevant to other sectors (Social, Religious, Non-profit,
Government). Mostly because there is a huge dearth of such senior talent in the
segments. We all might have experienced CEO/CFO like positions in some big nonprofit
organisations and even religious organisations. Organisations in these sectors
are trying to corporatize their workings to have optimum efficiency/transparency
and Accountability. Cost Centres/Profit Centres are being identified for budgeting
purposes and accountability of growth and progressions. The Government and Semi
Government Sector has always been utilising finance professionals for auditing/
certification & other consulting. Most Government sector organisations have been
victim of financial mismanagement and CSP kind engagements can be of a lot of
values. Domain expertise of senior VIRTUAL CFO and concurrent support can be
game changer for Indian bureaucracy. Cluster based approach, where same domain
professional clusters are created to cater for all strategic inputs and executions.
For example - Debt laden government departments can be utilising these kinds of
professional clusters to their advantages and can execute more than one project
simultaneously, benchmarking in technology adoption/fundraising and strategic tie
ups.
35
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Working as Professional Director/Resolution Professionals
Because of extensive domain experience as senior management of corporates, VIRTUAL
CFO Services are best suited to Professional Director Roles and the same holds
good for Resolution professionals. Of course, this VIRTUAL CFO is to acquire relevant
certifications, but these are natural roles to anyone who has been at CFO/senior
position in corporates and currently working as VIRTUAL CFO. He has been working
on the other side of the corporate for long and has been dealing with different risks
and uncertainties. Apart from the procedural part of the engagement, such domain
experience can have a lot of values to all stakeholders. VIRTUAL CFO management
capabilities of financial matters and negotiation skills can be of great value add to all.
Figure 4 Basic category of engagement with clients
All categories mentioned above are self-explanatory except board advisory, where
the client needs such experienced VIRTUAL CFO to engage through monthly/periodic
review meetings only and seek advisory for growth of the organization. Detailed
executions may not be required. Even this kind of arrangement can bring different
industry connections to firms including lender/investor association.
36
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Figure 5 Virtual CFO Eco System
Above is normal eco system vis a vis resources for CFO services
Diversified geographies of executions including one client having multiple business
locations, diversified business segments and diversified functional expertise requires
the above ecosystem. This is imperative for success in CFO services. Playing in a
larger team is one the most sought-after skills in this game. All other fundamentals
of executions remain intact.
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
Execution by
Virtual CFO Firm
37
38
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Virtual CFO Firm Organisation Structure
The Virtual CFO team Organisation structure is very dynamic and very much depends
upon the mix of onsite/offsite/hybrid services offered to the client.
For a CSP - engaged full time for Virtual CFO services or having dedicated Virtual
CFO service division. Talented Management Trainees are one of the key aspects of
resource planning.
Following is organisation structure which is self-explanatory in nature.
Figure 6 Model Organogram of Virtual CFO Service Providers Office
Basics to Initiation
Profiling
Initial profiling of the customer will be required for screening it. Their corporate
profile, size, intentions, market credentials, reference along with group enterprise
data is the first of few documents required before and after first meeting with the
client. An interaction with key management personnel gives insights about the client.
Generally, SOP’s are structured for all these elementary analysis about clients before
taking up the assignment. Such information is captured in a way to retrieve it for
future reference as well on a perpetual basis.
VIRTUAL CFO leader ensures that clients understand capability of CSP firm along with
its credentials even though initial engagement may be narrow.
39
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Scope & Fee
In many cases, clients need a lot of support for crystallising scope and fee
for preliminary engagements. On the one hand, he is anxious about so many
pending plans and on the other he is yet to taste/experience such CFO services.
Leadership rapport with clients plays a key role and initial engagement starts with
few deliverables. It gets broad based in due course against progressions on initial
engagements.
Financing is one of the key achievements of scope in most of the cases. CSP should
be making its efforts to make client organisation management understand that CSP
is not a finance consultant. CSP is supposed to act as facilitator coordinating with
all company’s existing lenders/consultants along with its own capabilities of direct
financing. Ultimately, he is to ensure that the best financing transaction is done, at
best terms possible. His professional fee may be linked with success of financing, for
all such internal documentation/co-ordination yet he should not be seen in parallel
to finance consultants. He is anytime an extended team, internal to organisation,
coordinating with outside finance consultants.
The perspective is long term association. A mix of retainership fee and success fee is
generally the case, mostly keeping in view affordability of the client. Other scope may
be MIS/SOP working, ERP implementation, MP etc.
Execution Periodicity
Unless it is very specific, generally quarterly deliverables are envisaged with at least
a year’s association prospects. Although it is never balling to ball commentary to
management, weekly updates are built in along with monthly reviews. On initial
engagement, it takes some time to communicate with the internal team for CSP roles
/responsibilities and kind of support required. Meeting and having informal rapports
with HOD’s are critical to performance and it also takes some time. Generally, 3
months’ time is required to get CSP settled within organisation culture.
There are few assignments which may take much longer time i.e., corporate
restructuring, manpower planning/recruitment and organisation development, SME
listing etc.
40
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Managing the Assignment
Based upon way of services, CFO services can be provided by:
Through Firms/Ownership Structure (Proprietor, Partnership Firms, LLP, Corporate
entity): One leader having it’s vertical/division to cater to different industry clients,
normally led by experienced Ex CFO capabilities coming from that particular industry
segment.
Collaborative Structure (Through MOU association, Tech Platform or any other form
of collaboration/association basis: This is a very interesting upcoming model of CFO
41
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
services and has potential to establish practice beyond geographical and technical
knowledge experience boundaries. Network and then Network of Networks are
evolving, supported by technologies.
General Execution
HOD Meeting & Clear Communication of Scope and Methodology
Planning with Management and HOD’s:
The qualified professional inspires and motivates high-performing finance teams,
leading change, shaping and embodying a dynamic culture, and setting out a
compelling vision that helps to navigate change.
• As the very first step CSP will organize a key members team meeting with HOD
and promoters to create a work plan with best consensus among everyone
• As a part of Board Advisory, CSP will be working with HODs as a team and
support system, not as a forced position. Its effort will always be to try to
minimize the Agency Cost and to work in favour of the company.
• Organise meetings as and when required with all key members of the team to
communicate the expectation of the HOD and promoters. With consideration of
all suggestions try to create a roadmap to achieve that expectation.
• Once the roadmap is as per the expectation and good to move forward, CSP
will discuss the same under HODs Assessment with the promoters
• After finalizing plan, a detailed study of processes and existing MIS will be done
to acquire knowledge of business
• All Software will be evaluated & Benchmarking will be done for all existing
software so CSP can guide for implementation/integration of software
• Advising on few stuck-up decisions i.e. corporate restructuring, financing, tapping
capital market, valuation of assets, business and brand etc.
• Study will be done which types of excel reports being drawn by different
department and being shared with HOD so CSP can analyse data flows of
Organization
• Understanding corporate structures and investor relationship
Planning with Finance Department
In case the CSP offers services to the CFO for its effective functioning of the role,
it’s very important to align with the existing finance department for best results. The
planning also includes
• Planning of key deliverables under assignment
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
• Training of F&A team
• Redefining roles and responsibility of the finance team
• Authority matrix review and revision, if required
Setup Execution
CSP is serving as a member of the executive team and performing accounting and
financial operations tactically and consistently to move forward with a clear financial
strategy in the future. He also put his effort to:
Accounts, Tax & Compliances
Benchmarking current accounting software/accounting & reporting process in the
department:
In many cases communication structures of the Accounts Department are not well
structured and as are not followed. CSP makes huge contributions in terms of
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
structuring the reporting process across the Department and then implementing
once for the sake of the total team to follow it, other than this it benchmarks current
accounting software capability and accounting system because of his vast experience
with other entities in the same domain using different accounting software’s and
practices.
• Accounting reforms
• Reforming COA to suit budgeting heads and MIS is one of the most valuable
contributions
• MIS Driven compliance Reporting
• Turning Accounts from Payment Department to Control function
Finance
The whole Finance process of the business from very start to end is evolving with the
only objective to maximise the value of the organization. CSP as a mentor or coach
will try to achieve that objective by:
• Creating a MIS format in the finance Department is the first thing or value
addition to the organization. In most of the cases, a loan statement in a
structured manner is not present. When all relevant data are incorporated in a
structured format its better understanding of current leveraging, gives insight
for the opportunity of refinancing and strategic inputs for the next finance
transaction.
• Deciding on leveraging levels based on current and budgeted level of activities
or the best finance mix (different nature of debts and equity) of funding are
other value addition points. It all can be used to fund the investments and then
working for lowest possible cost of funds. Laying down the monthly process of
review, will work as great value addition.
• Developing investment and asset allocation policies for balanced & sustainable
growth. Those policies would be long-term as well as short-term. There can be
a quarterly review process to match actuals with laid down policies.
• Budgeting cash flow on weekly, monthly, quarterly and yearly basis to answer:
o Related to periodic cash flows gaps
o Planning for filling in the gaps
o Streamlining short term surpluses and long-term gaps
o Allocation of long-term surpluses
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Actually, there are many factors to be considered at cash flow statement levels for
example reforming charts of accounts using best of the best utilities of current
accounting system software, ensuring daily/weekly/monthly closing process of
accounting etc.
Manpower Planning and Deciding on Organogram of Finance & Accounts
Department
Generally, this is the area where a lot of improvements are required because
promoters are not equipped to hire and retain talent in the F & A department. We
professionals have vast experience of reciting, retaining and developing resources in
the account and finance department which works very well for the company and the
promoter.
Total finance and account department are to be segmented in functions like Accounts,
Billing, Payment, Banking, Tax, Secretarial, Finance and Audit. Further to it, in many
cases promoters need advice as to what services need to be retained internally and
what services need to be outsourced, to be done by external consultants.
Ensuring best out of outsourced consultants depends as to whether we have a
competent internal team or not. Having CSP also helps in presenting companies
before to the outside world like Bankers, Tax Authorities in a better banner.
Crystallising on the organogram of finance and account department is the first step
to crystallise on resource requirement, their competency, experience, reporting pattern
and ultimately becomes fundamental to organization development. Overall structure
of the people process is created on this basic exercise. Golden rules of manpower
planning like pre-hiring, building capacity first, etc. paves way for better organizational
strength.
Other than extensive support in recruitment CSP also helps in deciding performance
matrix indices for all team members in the finance and account department and
thereafter monthly and quarterly appraisal systems. Drafting policies around incentive
and training systems within the Department is only possible because of CSP’s vast
experience.
Preparation of MIS/SOP’s with all the financial information and impact of those
financials on our process efficiency so we can enhance productivity and make it
system driven.
Implementation of ERP system for improved collaboration and better analytics with
simplified compliance and risk management system.
Bringing strategic investor/transaction to group as per discussion with HOD. Strategic
Partnerships give your business access to additional expertise and resources with a
competitive edge it needs to surpass its competitors.
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Risk & Governance
Timely compliances save business from penalties and interests this is an area where
unnecessary cash outflow happens. CSP’s approach will be to minimise this cash
outflow by following steps:
• Compliances will be MIS driven so it will be much more effective to be proactive
and take advantage of the opportunity to not only revamp systems and
processes to meet new standards, but also to improve performance and visibility.
• Training & incentive systems to be built for making it self-driven and staff will
be prepared when a new regulation or change to an existing regulation is
announced.
• Business friendly/customer friendly approach
Commercial Excellence
In today’s complex business environment, it’s very important to become more
competitive with the current domain. CSP will help to develop and implement various
tools and processes to achieve the highest level of commercial excellence in the
process.
At base level the process of commercial excellence will be:
• Projects will be cash flow driven. On a timely basis CSP will be evaluating
progress of the project by creating periodical cash flows of the project.
• MIS driven organisation to avoid ado decision. CSP’s effort will be to develop
the MIS framework in such a manner so CSP can achieve maximum output with
available resources.
• Cost Control Mechanism in place with the goal of value proposition, competitive
advantage and sustaining profitable growth, targeting 3% efficiency to best of
costing
• SOP’s for greater work efficiencies so e.g. CSP will help to develop the
framework which will be basically similar to the triangle in which there will be
an advanced capability at the top and then there will be foundation capabilities
and at the bottom there will be the enablers with all level of specific goals
• Maximum control on the commanding drivers to achieve the target
Sales Deciding on Organogram of Department
From a sales perspective, CSP will help design and manage the cost of sales,
compensation, product pricing, channel planning, partnerships and forecasting
• CSP support will be to the department to achieve more, within broad framework
of cash flow budgeting
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
46
• Suggesting in capability gaps of department and then building it through proper
manpower
• Planning, training & rationalising incentive systems
• SOP for bringing out the best out of channel partners
• Equal emphasis on volume, unit economics, cost of sales
• Mock interviews with best of industry sales leaders for benchmarking our
capabilities
• Proper Internal control systems will be made to avoid revenue leakage
• CSP will make sales department a customer centric/feedback driven department
Marketing
A strong finance marketing relationship can spell the difference between high growth
organizations and those left behind
• CSP will create a system of “what it should be” starting with deciding on short
term/long term budget of marketing (cost/leads/sale efficiency)
• Benchmarking will be done for above with industry’s best practices
• Performance driven marketing expense and tight budgetary control system
• Technology enabled marketing automation
• Customer/business/geographical segmentation to be mapped on monthly basis
Human Resource
• CSP will help the respective HR team to do manpower planning for next 3
years business plan executions as this is a major part of its financials and better
control over manpower will give better control on the company’s financial
position.
• Required functional training to employees for process efficiency and to make
them comparatively more confident about their profile and projects on which
they are working.
• Incentive systems across departments to motivate employees to perform their
best. Incentive will not be monetary necessarily. It can be in any form like
promotion or family tour. The final decision will always be with the mutual
consensus of HOD
• MIS & SOP’s around HR function
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STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Miscellaneous Areas
• Overall efficiency will be improved by having MIS/SOP/ERP system
• Advising department heads on people process as this is first capability process
• Working with departments for enhancing their efficiency through budgeting of
cost/revenue/performance
• One innovation per person/per month will bring drastic changes
Training as Basic Execution Method
“Training” and “Incentives” are two strong pillars for great execution on a sustainable
basis. This should be carefully planned at every level even within CSP organization or
within client organization also. Training routines increases morale of employees and
ultimately enhances productivity. Suitable incentive structure across organisations is
still a rare thing to find and here lies great opportunity for CSP. We have already
discussed earlier that the organisation’s team is CSP’s team. These fundamental
reforms will yield visible improvements in very short time and will also bring trust
faster between client team and virtual CFO
Organisation team training is equally critical for performance. It yields loyalty from the
organisation team and results in fast informal bonding of both the teams. Bonding
comes first to solidarity. Weekly meetings are separate from weekly training and 50%
of such training of organisation internal team training is not very technical.
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
Reporting and Specifific areas
of execution
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Reporting
Figure
Reporting to CSP by its Team
Generally, 2 tier resource planning is there for CSP deliverables i.e. manager and
then management trainee (3rd year CA trainee capability). Manager is 3-5 years of
experienced resource dedicated to the job for at least the first 3 months. After a 3
months period other clients may be tagged to such a manager as a major portion
of working is set with the current organisation. Apart from this internal team, the
entire organisation’s capability is there for CSP to utilise it to its best except certain
exclusions agreed at initial level of discussions.
Daily/weekly reporting pattern with standard reporting formats are there to reflect
on
• Stuck ups and support required either from CSP leader or from HOD’s/Promoter
• Major pendency, reasons, and next dates
• Major understanding gaps at any level
Reporting by CSP to Client Organisation
Board reporting is an attempt to update the financial reporting process. By way
of board reporting, the directors are provided meaningful and timely financial
information. It is a preparation of a complete checklist for the senior management
explaining the critical performance indicators. It can be understood as consolidation
and redesigning of financial reports, investment reports, business analysis reports,
budget reports, etc. Hence, this involves both internal and external reporting by
preparing detailed MIS reports
Weekly reporting for updates is done in standard format on specific deliverables,
already identified. One to one meetings with relevant HOD’s to have their feedback
on draft reporting on a weekly basis is essential before sitting with management
on this report and discussing for next week’s plans. It is designed in such a way to
50
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
pave way for monthly/quarterly reports instantly. HOD’s meeting may be required to
seek attention on outcomes of reports, which is done under due discussion of the
management.
CSP leader reporting to own organisation
In a reasonable size of organisation, tech enabled reporting systems are in place
to reflect on daily time deployment on specific subjects at every level of Virtual
CFO. Priority wise team allocations are done, and weekly plans are laid out to map
daily resource time allocations. This paves the way for weekly reporting. This format
incorporates other opportunities with the client organisation to be tapped by another
team, concurrently or in future.
Succession Planning
At the time of the last stage of the assignment completion, it is very important for
the CSP to have succession planning. This step is most crucial to ensure that the
performance of the CSP is carried forward in his absence and the positive momentum
he has brought in the organisation continues for the longer period.
During succession planning, it may also require support to recruit a new CFO for
which the CSP can provide the exact job description, roles & responsibility, experience,
and inter-personal value of the new CFO.
Handover & Exit
After successful execution of succession planning, the CSP handover the requisites to
the new CFO/management and takes a successful exit
The handover may be in the form of report of the key performances, reports on
various to-do and do not list for the successor, revised SOP’s or documented new
processes, To Do list for upcoming statutory and financial compliances.
Few Execution Areas
Execution in SME
SME’S are an integral part of any economy contributing a major portion of GDP. They
are also great in numbers as most of the time SME cannot afford high quality high
cost professionals in their organization CSP fits in these kinds of organizations. CFO
services are right fit in these organisations. Most of their problems are universally
the same such as inefficient accounting systems, poor financial management, credit
line difficulties, high levels of receivables and inventory levels, unstructured processes
and reporting, absence of cash flow management/budgeting process. CSP firm is best
positioned to help SME’s in all its efforts for growth and sustenance of business.
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
A lot of SME virtual platforms are being created to bring their collective demand and
supplies at one place. Even a cluster-based approach is being adopted to serve more
than one SME by the same CSP through collective processes. Number of SME’s and
their distributions across geographies are mind blowing, CA fraternity has been taking
care of their compliances/auditing for long. Now is the time for CSP’s to engage with
them for business growth.
In such scenarios one manager and associate can be serving more than one
SME at a time and that too bit diversified businesses under due guidance of CSP
leader. Resource pooling from different Virtual CFO Service Providers is key to such
executions.
Execution in Local Vicinity (Where CSP Firm has Its Office & CSP Leader Locally)
Mostly executed through conventional organisation structure
CSP leaders can supervise 4-5 executions concurrently and even managers can also
be allocated to more than one assignment as and when required. CSP leaders pay
a weekly visit (once or twice) as per requirement and ensure close coordination.
Physical proximity helps discovering other opportunities with the group. Broad base
service offerings and local references play a larger role. Local liaison strength can be
easily reflected on HOD’s and promoters to garnish better credentials for diversified
opportunities with the group. Comparatively much easier with a lot of flexibility for
on the part of team and team of client organisation.
Other Locations (Where Local Office/Local CSP Leader is Not There)
Generally, two visits a month is a process on the part of the CSP leader. Manager may
be required to have a longer stay with the client team (initially 7-10 days managed
in one or two visits). It is always advisable to manage associates and trainees locally.
We can collaborate with any local CA/CMA firms on this. Client finds a lot of comfort
when CSP team members are around and accessible, even if they are associates and
trainees. Based on prospects, planning for a local office can be done. Multiple types
of arrangements are possible with local capabilities across geographies.
It becomes blessings in disguise as most of the time, CSP concept is new to such
territory and existing clients can be made a reference point for discovering other such
client prospects. For them you are being present at a financial hub like Mumbai (and
other international financial centres also) can be great strength in terms of fundraising,
discovering capital market options etc.
International Assignments
This kind of practice has universal appeal as in many of the countries, SMEs are facing
the same problems. Indian professional’s cost arbitrage is at any time an advantage
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STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
and helps competing for providing CFO services across the globe. For example, Africa
is a continent where there is huge talent dearth and they require such services the
most. Dollar billing is the biggest attraction. Same way, these kinds of services have
good scope in Europe and in growing south-east Asian countries. Following things
will help any CSP firm to grow its wing both in networking with other professionals
and for acquiring clients:
i. ICAI MOU with professional accounting bodies to recognise CA’s for different
professional services
ii. Indian CA’s presence/working in these countries and their presence on Indian
diaspora and connects with business communities of those countries
iii. Possibility of Future “app to app professional collaboration” with Indian
professional groups. ICAI manual MOU should get extension of having all
such partnering countries professional body’s members on app for member
to member collaboration. Technology is paving the way for all these powerful
models of collaboration.
Physical meeting/coordination part can be managed by local CSP leaders either
through CSP own local offices or through collaborations with someone already based
at those locations and remaining almost 80% virtual executions can be managed from
remote locations. Timing differences can also be utilised to execution advantages.
Most of the things can be completed in India for a US client while his team is still
sleeping there. Initially the collaboration model would be more effective. Later on, our
own team gets trained for different local executions. Local CSP leaders become one
more layer to the structure. Technology and investor relationships are a huge arbitrage
of working in such diversified geographies.
Virtual Platform
We are living in the virtual age of aggregation & Platforms. Platforms for CFO services
are going to be the norm. Professionals and demand for professionals will be acquired
on different platforms both national and international and bipolar (either in job or in
practice) world of professionals will have paradigm shifts. This will provide a lot of
flexibility of choice on the one hand for professionals and cost-effective solutions to
clients at distance on the other. There will be third mainstream options available with
professionals to work through these platforms for their variety of choices. International
opportunities for professionals will be more prominent without the compulsion of
shifting their families and without opting for jobs at distant locations.
Above will greatly impact demand supply of professionals and we all need to be
prepared for it.
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
How CA’S in practice should be prepared for such professional opportunities
Firstly, a detailed counselling by any senior CFO Service provider is required to
understand the nitty-gritties of it. Following are some fundamentals:
• Outsourced compliances services (Tax filing, etc.) is very different from CFO
services
• More focus on credit side of the business (sale growth, Profit growth, financing
& Strategies)
• Industry domain expertise is more prominent than functional strategies
• Team from industry experience will be of importance
• Top down approach of execution will work
• Networking with senior industry professionals and working through them will
work if you do not have skill set acquire it through association with senior
industry professionals
• Team building is more important than individual skills
• Value add/ROI to customer is more prominent than governance and compliance
This practice starts with acquiring one senior CFO experience professional with
industry focus. Starting with one transaction where such a practitioner can be learning
everything around CSP progression led by such experienced associates is the best
method of starting on this. In parallel, one consulting LLP can be created where he
can be one of the key executives. Under the provisions of CA institute guidelines,
it may also be seeking appropriate permission to become a partner in such LLP.
Likewise, any corporate entity can also be visualised. Other regular workforce of the
CA in practice can be utilised for CSP assignments.
In parallel to above, other branding (creating separate website and social media
presence) activities can also be planned. Digital presence is absolutely necessary.
Again, precautions will be required to not to go beyond institutes guidelines to
market yourself/your CA firms while branding this entity/logo engaged in CFO
services. The most important point will be to develop industry wise CSP verticals
in due course. Going forward use of technology for team management, sharing of
resources, standardisation of execution will be key strategies.
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
SOLUTION DRIVEN
APPROACH
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VIRTUAL
GLOBAL SERVICE
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BUSINESS GROWN
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Setting up Practice
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Setting Up of CSP Practice for Members in Industry
A reasonable experience will be required before you opt for these high level (in
terms of management) advisory services where execution is the name of the game.
Normally an experience above 10 years and any domain experience may be initial
things to start with. But in many cases, we are seeing even lesser experienced CA’s
opting for CSP services for example in start-up filed even 5+ years of experience can
be seen working as quasi CFO. It will be advisable to have association with senior
finance professionals (preferably with reasonable CFO experience of relevant industry).
In the majority of cases, promoters of companies/groups look forward to the same
industry experience and senior guy as team leader, irrespective of your capabilities.
Collaborating with CA’s in practice with a reasonable size of team and clients will yield
immediate effect as you do not have to look for initial infra & solidarity.
Another way is to join any existing small, mid-size CFO Service firm to open new
industry verticals in partner capacity negotiating partnership shares in such vertical
buildings. This will be best if one does not wish to build his own brand name.
CFO Services & CXO services
Few salient differences between CFO services & CXO services are
Performance Areas Virtual CFO Virtual CXO
Key Result Area Finance & Accounts,
Processes,
Functional specific area such
as Operations, Marketing
Roles Strategic with hands on
support on operation
HOD
Must have Expertise knowledge of
Finance with dynamic skills
of planning & Execution
Domain Specific Rich
Experience of TOP level
Involvement at Strategic Stage Operational stage of
respective function
Integration Must have integration
across all department of
organisation
Generally limited to
respective department of
organisation
Assignment
Duration
6 months to 30 months Assignment based
Larger Term is also possible In General, 12 months to 36
months
Complexity More complex as its mixed
blend of Strategic &
Operations and across all
departments
Relatively less complex. As
its limited to a functional
role
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SOLUTION DRIVEN
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GLOBAL SERVICE
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BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
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The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
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Others Execution Strategies
Trainee in Every Department Strategy
CSP firms have a lot of things to initiate upon and improvise. Even most of the time,
all these gaps for improvements are known to the whole of the organisation team.
It all needs a cushion of resources to start on many things. Gradually organisation
team’s participations are ensured through on the job training to make them
comfortable with all these initiatives and executions.
Trainee in every department is a powerful strategy for the above. It brings magnificent
changes to the organisation without much of cost and disturbances to organisation.
CSP firms become the first cushion for this. Going forward, trainees can be arranged
through consultants already in the ecosystem of the organisation for a limited period
and that too for specific executions. All supervision is to be made by either Virtual
CFO Service Provider or any HOD/manager of the organisation. These trainees are also
utilised for multiple trainings of department team and HOD’s (finance or non-finance
types). Few of training types are as under:
i. Accounts/Finance team - training around Ms Excel, Tally advance function, how
to write mails, daily/weekly reports.
ii. Storekeeper/Supervisors training (on site) – for inventory record keeping, MIS,
Escalation matrix, etc.
iii. Finance for non-finance – To HOD’s and key managers – on different aspects
of importance from finance perspective and why a weekly co-ordination with
finance team us very important
Likewise, other trainees in other departments (Engineers & MBA trainees in sales,
projects and other operations) can be utilised for different department trainings. Most
of it has negligible cost implications and works wonderfully well. It is said that the
difference between an average performer and excellent performer is approx. 8 times.
Training helps to upgrade productivity by manifold.
Gradually, encouraged by above, these organisations can get themselves registered
with CA/CS/CMA institutes and can be building a flow of long-term trainees within
organisation. Excellent performers amongst these trainees can be placed in MD camp
office to enhance MD’s/Directors daily productivity. Likewise, other department heads
can be engaging with different premier institutions for bringing high quality trainees
from these institutions and making regular flow of it. Such trainees’ benchmarks
existing team performance from every standard and help build a strong frontline of
the organisation and break inefficient flow of work where managers, most of the time
are doing their juniors’ job. It saves a lot of organisations time across levels.
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STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Benchmarking process for every HOD/department:
This is one of the most crucial aspects of any CSP engagement. It starts with
benchmarking at organization level by benchmarking financial performance against
the leader’s financial performance in the industry (both listed and unlisted as
annual returns are available on MCA site) and then flows down to benchmarking at
HOD level. Creation of the Advisory Board (of multi-disciplinary legends) is one of
such important processes of benchmarking. Training by industry veteran heading a
department of a bigger/better organisation can be another way of benchmarking at
Department level (for all its team capabilities/motivation level and processes). Top
down gradual approach is required to build this as the basic structure and culture
of the organisation. Think about a situation where CSP, during its initial period of
engagement, brings stories about industry leader processes/financial performance in
an organised form and let promoters and HOD’s do their introspection for different
reforms required, rather than telling it upfront in the referendum format.
Mock interviews
Mock interviews are one of the best methods of greatest learning. Senior
management and HOD’s of industry leaders are scheduled for mock interviews for
a quick benchmarking and gathering strategic inputs about the industry. In many of
the cases it helps decide management for the next level of team building and puts
Yaksha Prashna in business building. This process may be built for junior roles after
reaching maturity. Businesses after the initial journey are nothing but team building
for promoters. Mock interviews bring the best of knowledge about team building to
promoters and HOD’s. It helps in succession planning also by shelving key prospects
against sudden exit of critical resources.
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
58
SOLUTION DRIVEN
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VIRTUAL
GLOBAL SERVICE
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Importance of Tools
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SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Importance of Tools
By now we have very well understood Why, How and Types of Virtual CFO (VCFO)
services and also learnt about the target clients. It is time to understand the basic
tools and templates as well which can be used and followed for best services to
proposed clients.
Currently, there is no official requirement as to the qualification that a VIRTUAL CFO
should hold. However, it is generally expected for a VIRTUAL CFO to have finance
related university degree, professional accounting qualification and sufficient relevant
experience.
In addition, Virtual CFOs can obtain the professional certification which is available
both in domestic and international forums. However, ACCA, ICWA, CFA, CPA are
equally equipped with providing these services.
A qualified accountant from ICAI is the best preferred alternative in Indian business
scenario.
When we are using it for building those spread sheets for CAPEX, projections,
performance analysis, equation break and the like, we spend hours together. However,
it becomes difficult for the stakeholders to understand what is going on. Therefore, it
is very important to make it user friendly and to the point at the same time as well.
There are various software available in the market offering various tools for efficacy
and efficiency of services as VIRTUAL CFO. However, for a CA in India “excel” based
tools are very important as they are highly acceptable across industrial segments.
Hence, sticking basic accounting, control and other tools and formulating them in
spread-sheets precisely becomes very important.
Selection of tools based on the nature of business of the client is very important.
The behaviours and experience level of stakeholders also play an important role in
designing and modelling a particular tool for controls and administration. In the
coming pages, we will try to understand the basic tools available for VIRTUAL CFOs
which they can select as use for their respective clientele.
Tools used by VIRTUAL CFOs
When we are referring to tools, they are nothing but regular tools which a financial
expert should be using to gain overall control on the business of the given client. As
we all know that being a VIRTUAL CFO is not only acting as a financial controller for
any business but also its partnering with the promoters and stakeholders of the very
business organization.
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SOLUTION DRIVEN
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VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Here on and in the pages to follow, we will be discussing various accounting,
controlling and financial tools available and their importance to a VIRTUAL CFO
and the business as well. We will also try to understand how the use of these tools
can help service a client in the most professional way mutually beneficial to all
stakeholders involved.
Below is the illustrative list of various tools and techniques which have proved their
worth for VIRTUAL CFOs. Each one of them will be dealt with in detail subsequently.
Sr.
No Brief description Function
1 Financial performance on regular intervals. Profitability
2 Comparison of actual performance with budgets,
previous periods of current year and previous year.
Variance Report
3 Cash-flow statements Liquidity
4 Productivity and volume analysis. Productivity
5 Gap analysis for management bandwidth.
(this may not be a regular phenomenon)
Exceptional
6 Fixed assets register, usage, possession. Asset Management
7 Statement of Changes in working capital (from
one period to another)
Usage of Funds
8 Periodical statement of receivables and aging
schedule thereof.
9 Inventory analysis, aging and treatment of
obsolete and/or slow-moving goods.
10 Optimal usage of available resources for working
capital.
11 Projections for coming period(s); working out IRR. Strategy/Planning
12 Working out any additional requirement of CAPEX
and manpower to achieve targets.
Strategy/Planning
13 Working out the requirement of funds to take care
of projections/targets.
Note : Tools from (9) and (13) above are mainly simple analyses which are
more of self-compute and calculative based on projections and business of the
company. Rest all we will discuss in detail with relevant usage, importance,
advantages and limitations in forthcoming pages.
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SOLUTION DRIVEN
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VIRTUAL
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The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
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Western India Regional Council of The Institute of Chartered Accountants of India
a) Profitability Analysis
Every business enterprise, its promoters and owners are mainly concerned about
profitability in the first place. Even in the case of non-profit organizations,
though the main focus remains at other causes for which they are incorporated,
the profitability still remains at focus to cover all costs in any business
organization.
Depending on the size and nature of the business of the client, a VIRTUAL CFO
primarily focuses on profitability and design an information system to ascertain
that true profitability of any business duly bifurcated into each of its segments.
Profitability analysis mainly consists of overall performance of business, customer
wise profitability analysis, product wise profitability analysis, geography wise
profitability analysis, etc. Depending on the business of an enterprise there may
be further analysis as branch wise, salesperson wise, and the like.
Various advantages and disadvantages of profitability ratios should be
considered before utilizing these ratios in analysing a company. The ratio
analysis is one of the important fundamental analytical tools, one can perform to
judge whether the company is among the plausible investment categories. One
can do the ratio analysis of a company on a standalone basis or by comparing
with the industry peers.
Amongst various categories, we are going to discuss the pros and cons of
profitability analysis first. Profitability ratios as one of the categories have
subcategories. Whenever we deal with profitability ratios, we always think of
profit as a percentage of something.
Let us take some of the important ratios that represent the entire profitability
ratio’s category and discuss the advantages and disadvantages of the same.
E.g. Main profitability ratios are: -
1) Net profit margin ==> Net income/Total sales
2) Gross profit margin ==> (Revenue - cost of goods sold)/Revenue
3) Return of assets ==> Net income/Average of opening and closing assets
of a given period
4) Return on equity ==> Net income/Average of opening and closing equity
of a given period
5) Return on capital employed ==> Earnings before interest & taxes/(Total
assets - Total Liabilities)
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1. Net Profit Margin
Net profit margin is also termed as a conclusive ratio by many financial
experts. The main reason being very simple, if this ratio performs well in
the given year and the trend is favourable, most likely the company is
doing well and is on the tract on which it intends to be.
The main reason why financial experts termed it as a conclusive ration is
because, any issue with other ratios and the performance of the Company
will have a direct impact on its net margin. Hence, it is always suggested
to first look into this ratio.
Since different industry sectors will have their own way of operating; it
is very difficult to compare the companies from different sectors based
on only Net Profit Margin, and this works as the only disadvantage of
this ratio. For expansion strategies and launch of new products in the
competitive market; the companies may opt for low profit margins initially.
2. Gross Profit Margin
Gross Profit Margin, as we all know, is the difference between the gross
sales and cost of goods/services sold. If the gross profit margin is, say
25%, of the sales, this means 25% takes care of general and administration
expenses and net profit. Therefore, a higher gross profit margin will
increase the chances to improve the net profit margin as well. In case there
is any problem in the efficiency of operations of a company, this ratio
immediately points out the same. In order to not have any adverse impact
on the desired net profit margin, the company has to ensure that the gross
profit margin is sufficient enough to cover the general and administration
expenses and leave sufficient balance for net profits.
This ratio only helps to investigate upto the operational efficiency of a
company. Hence, this cannot be termed as a full and/or a conclusive ratio
as net profit margin. Further, like net profit margin this ratio also is of
not much help in case of comparing companies from different industrial
segments. Last but not the least, without having a look at the net profit
margin, this ratio alone cannot be interpreted.
3. Return On Assets
One has to be cautious while using this ratio as there various methods of
amortization and depreciation available with the management and they can
easily manipulate the financial statements by overvaluing or undervaluing
and also by merely changing the method of depreciation.
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4. Return On Equity
If one just wanted to stick to his investment, he will always have an eye
on the profit his investment is making. Return on Equity is popularly
used alongside the net profit margin. We have seen that the net profit
margin has its inbuilt disadvantage while comparing the companies
across the business verticals, this ratio overcomes that disadvantage as
it is comparable across company’s peer groups. For an equity investor,
the profit generated on their equity matters the most. This ratio is used
in calculation of residual income valuation. Residual income valuation is
used in calculating the intrinsic value of equity. Therefore, greater the ROE
higher will be the intrinsic value of equity shareholders and as a result it
will maximize their wealth.
One should be careful about the fact that the return on equity is not
increasing just because the value is being created in the company by
passage of time. The management of the company, in the urge of attracting
the investors, may manipulate this by buying back its own shares which
result in lesser number of equity shares and hence increase in the return
on equity.
5. Return On Capital Employed
In order to judge the performance of the management of a company this
ratio is widely used. This ratio helps us know about the management’s
performance in putting the capital to its most efficient use. In many big
companies the management compensation is based on set targets of this
ratio. Like Return on Equity, this ratio also can be compared with the
companies across different industries. This ratio judges the overall utilization
of funds of the company which makes it advantageous to the analysts.
Further, this ratio covers both, the equity as well as debt.
Since this is calculated on the book value of the assets of the Company,
one needs to consider the market value of the assets of the company while
computing this ratio. Only then, this ratio becomes more relevant.
b) Variance Analysis
Every business makes forecasts and projections for the coming period. When the
plans are implemented, there is a possible chance of deviation, either favourable
or unfavourable.
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Variance analysis helps the analysts as it is the study of deviations of actual
versus forecasts and projections in budgeting or management accounting. This
helps one to understand:
a. The assumptions on which the forecasts and/or projections are made were
relevant.
b. The actual performance was exactly in line with as assumed at the
projection stage.
There are two steps of Variance analysis viz.:
1. Calculating the variances.
2. Identifying and understanding the cause of each variance.
Reasons for variances can be either of the following
1. The market conditions can change from the stage of making projections and
the actual performance and this may cause the standard budgeting practices
unrealistic, for example Short supply of raw materials causing suppliers to hike
prices.
2. Many assumptions such as standard output and standard man-hours may not
hold good in real implementation stage.
3. In case of delivery of services, the actual working conditions may differ from
what we projected and this may cause variance.
4. Certain areas such as “level of occurrence” and the like has discretionary basis
for planning, e.g. Output of creative activities can be benchmarked to a high
level of accuracy.
Variances may be classified under the below mentioned heads
1. Material Variances:- These arise from the difference between actual costs of
materials used in production and standard costs of materials specified for the
goods produced. This comes into play because of the difference in quantities
consumed and quality initially allocated for production. This can also happen
due to the difference in price paid and price budgeted for materials used.
2. Labour Variances:- This denotes the actual wage paid to workers versus the
standard wage prevalent for the output specified. When the actual labour costs
are more than budgeted ones, the variance is unfavourable.
3. Overhead variances:- It may be defined as the sum total of indirect material,
labour and expense costs. Overhead variances may arise due to the difference
between standard overhead costs budgeted and the actual overheads incurred.
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Seldom is a business going to be successful without using proper managerial tools
to evaluate how the business is performing. At the most basic level, every business
needs to prepare an annual budget. A budget is often used as a road map, outlining
the organization’s performance objectives for a given period of time.
In order for a budget to be considered useful, it needs to be used as a comparison
tool when the business results start rolling off the computer. This is referred to as
Budget Vs. Actual variance analysis. By comparing a line item budget to actual line
item results, VCOs can learn a lot about the business of their clients.
This will enable them to make key adjustments and business decisions that might
make the company more profitable in the future. It’s important to note that a variance
analysis does not answer questions about business performance. Instead, it gives an
indication of where to look for possible material issues.
Budgeting is not an exact science. It’s an estimate of expected results based on
certain criteria. Even experienced business managers can have difficulty preparing a
budget. Once a variance analysis has been completed, the task at hand is to focus
on investigating “material” variances. Every organization is going to use different
parameters to decide what they believe are material. As a good rule of thumb, any
20% or greater line item variance should be subject to further investigation and
explanation.
Key benefits of Variance Analysis
1. Identifying budget problems
If a variance analysis renders a set of results that create large variances
throughout the report, it might be an indication there are significant issues with
the way the budget is being prepared. The issues might relate to the use of bad
data or input or perhaps there are formula mistakes in the spreadsheet being
used to prepare either the budget or the actual variance analysis. In essence,
a variance analysis becomes a good method for evaluating the company’s
budgeting process. By taking the time to improve the budgeting process, the
company should become more efficient.
2. Identifying revenue/expense issues
In the case where only one to several line items indicates a material variance,
further investigation of each of those items becomes necessary. If a revenue
item is out of whack, it is critically important to determine if the source of the
problems relates to sales volume or perhaps to pricing issues. Either way, a
responsible VIRTUAL CFO would want to sit down with the company’s revenue
generators (salespeople) and figure where the actual problem lies.
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As variances relate to expenses, the results could be an indication of careless
spending. It might necessitate accounting personnel working closely with those
who are making purchasing decisions to find ways to secure better volume
discounts or improving the bidding process in order to secure the best prices
in the marketplace.
Sometimes, variance in both revenue and expenses might be related. If
revenues show a positive variance while expenses show a negative variance, the
explanation of both variances could be that business is better than expected. If
the profit margins are close to budget, there might not be a problem at all.
3. Identifying needed changes in the overall business strategy:
In some cases, budget Vs. actual variances might point out the need to
re-evaluate the company’s product line or target customer base. A lot of
assumptions go into preparing a budget. If those assumptions are causing the
budget to blow up, it might be because related projections are simply wrong
for a variety of reasons. It might be as simple as a change in the economy or
as complicated as delays in getting products out to customers. At the end of
the day, necessary changes within the business might be indicated.
4. Identifying managerial issues
At times, a variance analysis can provide insight as to how well or poorly the
company is being managed, In the purchasing example mentioned above, the
inability to lock down reasonable volume discounts or secure competitive bids
might indicate personnel problems in the purchasing department. Furthermore,
weak sales might be an indication of salespeople being improperly trained or
motivated. By addressing these types of issues, the variances might disappear
as the company gets on track.
5. Identifying criminal issues
It’s not something people want to think about, but employee theft is likely
to rear its ugly head where and when business managers least expect it.
More often than not, theft issues tend to appear as variances in the expense
categories. If employees are stealing product, sales numbers won’t match
inventory levels when cost of sales calculations are done. If money is being
embezzled, cash expenditures will exceed expenses reported. It’s not fun, but
variance analysis has long been one of the most effective ways to identify
possible internal crime issues.
While a budget Vs. actual variance analysis might not provide all the answers,
it has certainly proven time and again to be an important tool for the
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management to use when making decisions about the business. Without a
variance analysis, a budget ceases to be a working document and becomes
little more than a presentation slide for the benefit of business owners and/or
prospective investors.
c) Cash Flow Analysis
Statement of Profit & Loss and statement of cash flows are two statements
which a company prepares religiously for a given business cycle. First shows the
profits made or loss incurred during a business cycle by a company and later
shows the cash position of the company.
A cash flow of a company at any given point is the difference between its cash
available at the beginning of an accounting period and at the end. The cash
includes loan proceeds, investment income, and the sale of assets, and spent for
paying the operating expenses, direct expenses, principal debt service, and the
purchase of assets such as equipment. Cash is kind and one can be profitable
on paper, but cash poor. This position is dangerous and a company is soon at
the verge of running out of cash.
The various sections in forthcoming paragraphs describe cash flow statements
from various aspects. The study would help us find out how to do cash flow
analysis in order to increase an enterprise’s cash flow. We will also get to know
about cash budgets and statements of cash flows and understand how to
analyze them. This knowledge and understanding are key to properly analyzing
and operating the business.
How to do cash flow analysis?
Cash is an utmost requirement that makes any business function. And to check
the health of a company, a cash flow analysis is used. Cash flow analysis is
the study of the movement of cash through business; some may call it a cash
budget, to determine patterns of how we take in and pay out money.
Cash flow analysis should not be confused with statements of cash flows of a
company. Keeping track of cash flow is essential for the survival of any business,
big or small. However, financial experts sometimes speak about the cash budget
and a more comprehensive statement of cash flows.
The first step in analysing a statement of cash flows
A business state-holder must look at the last two years of the company’s
balance sheets and compare the difference between the two in order to develop
the statement of cash flows.
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With information from an income statement, such as profit or loss and
depreciation, as well as the information from the comparative balance sheets,
particularly how current assets and liabilities may have changed, one can
develop a statement of cash flows.
Preparing and analysing a statement of cash flows
The cash flow analysis mainly is comparing the uses and sources of funds from
the comparative balance sheets, which allows a company to better see its future
cash needs.
The statement of cash flows provides valuable information about a company’s
gross payments and receipts and allows insights into its future income needs.
The cash flows statement consists of three sections: operating activities, investing
activities, and financing activities.
The indirect method of preparing a statement of cash flows begins with the
net profit from the income statement, which is then adjusted for non-cash items,
such as depreciation
Cash flow from operations - elements one need to complete on section one
are earnings before interest and taxes (EBIT) and depreciation. Depreciation is a
planned reduction in the value of a fixed asset as it is used. For the purpose of
cash flows from operations, add all of depreciation expenses together to arrive
at total depreciation expenses.
EBIT is a representation of the ability of the firm to earn from operations. This
means that the value represented by EBIT does not have any finance costs
(interest) or government influences (taxes).
EBIT is derived from net profit in the following equation:
Net profit (minus) interest expenses (minus) income tax (equals) EBIT
Cash from operating activities is calculated in the following equation:
EBIT (plus) depreciation (equals) cash from operating activities.
Cash flow from investing activities - This section a summation of the
investment gains or losses a company encountered in a period. It includes
purchasing or selling fixed assets, such as a plant or equipment.
Other activities include purchasing of investments, settlement collections, loaning
money, or collecting on loans made. This section deals with investing activities,
like purchasing shares of stock, not financing activities such as securing funding.
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When a company purchases assets, investments, or creates new loans, it
documents a negative flow of cash. Similarly selling them or collecting on a
debt, it records a positive cash flow.
Cash flow from financing activities - This is a section that shows the financial
activities not recorded in investing activities that were a result of transactions for
long-term funding or return of the funds. Activities in this section are a direct
result of receiving and making payments on loans.
The sale of company stock for financing can be recorded in this section, along
with repurchase of stock, dividend payment, debt repayment (as long as it is for
a financing activity). Any payments going out are negative cash flows, and any
payments received are positive cash flows.
Advantages of cash flow analysis
Knowing when your money comes in and when you pay invoices gives you
a perspective on your financial situation, a budget, profit and loss statement
general ledger or balance sheet can’t. Even if your business is profitable, poor
cash flow management can lead to costly or embarrassing situations you might
have easily avoided. That’s why it’s beneficial to do a cash flow analysis.
Maintain adequate cash reserves
Knowing when your customer’s payments will arrive and when your outstanding
is due to be paid will enable you to have enough cash on hand to pay your
bills. If you book a Rs.20 crore sales that costs you Rs.10 crores to fulfil, that
sale might hurt you if you pay your suppliers and employees that 10 crores
within 30 days but your customer won’t pay the 20 crores bill for 60 days.
A cash flow analysis allows you to maintain adequate cash reserves to cover
situations such as these.
Manage credit better
If one uses credit to pay one’s bills, a cash flow analysis helps him to prepare
enough credit availability or arrange for a loan in time. In addition to estimating
cash flow based on expected expenses and income, build in a cushion for cost
overruns and late payments or bad debt. Mismanaging your credit not only
leads to an inability to pay your bills, but it can also result in declined charges,
interest penalties, fees and damage to your credit report and score.
Helps you adjust
Knowing your cash flow situation will help you make adjustments to keep your
business operating. For example, if you are paying down debt each month, a
cash flow analysis might alert you to the fact that you need to save that cash
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to build your reserves every quarter. You might be able to reduce your spending
in a specific area during a period of slow receivables. In some instances, you
can defer your salary. You might ask customers to pay earlier or work with your
creditors to delay payments to help you through a short-term cash crunch.
Avoids production interruptions
If you have huge profits on paper, that won’t help you to keep your staff
working or suppliers sending materials if you can’t pay them on time. When
you can’t make payroll, put down deposits or order supplies and materials,
you can lose your ability to make your product or provide your service. Even
a temporary loss of production can put a significant dent in your profits and
throw your budget out of whack. In addition, an inability to fill orders starts
rumours spreading about your company and might cause your customers to
find a new supplier.
d) Working Capital Analysis
Like cash flow analysis working capital analysis is also one of the most
fundamental concepts of financial analysis. Once is about the company’s financial
statements as a whole and another is associated with the balance sheet on a
company’s financial statement.
As all the sections of a financial statement, in a way or other, impact one
another, and hence, the changes in working capital affect the cash flow of
a company. Therefore, it’s important to understand each of the components
separately.
The amount of money which a company has to pay its short-term expenses
and liabilities is called working capital, we may also call it net working capital.
It represents the difference between a company’s current assets and current
liabilities.
When a company has more current assets than current liabilities, it means it
has a positive working capital. This means that the company is fully equipped
to pay its short-term liabilities as they come due in next 12 months. It is a sign
of financial strength. One has to be cautious that having an excessive amount
of working capital for a long time might indicate that the company is not
managing its assets effectively.
Reverse is in the case of negative working capital, when the current liabilities
exceed the current assets. Working capital could be temporarily negative if the
company had a large cash outlay as a result of a large purchase of products
and services from its vendors. But having a negative working capital for a longer
period, may cause for concern, as it indicates that they are struggling and are
relying heavily on borrowings to finance their working capital.
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Since we have sufficiently discussed cash flow in previous topics, we will only
refresh it here to keep our understanding in this regard readily available to
understand effects of changes in working capital on cash flows of a company.
Cash Flow is the net amount of cash and cash-equivalents being transferred in
and out of a company.
Does Working Capital Impacts Cash Flow……...How?
If a transaction increases current assets and current liabilities by the same
amount, there would be no change in working capital. For example, if a
company received cash from short-term debt to be paid in 60 days, there would
be an increase in the cash flow statement. However, there would be no increase
in working capital, because the proceeds from the loan would be a current asset
or cash, and the note payable would be a current liability since it’s a short-term
loan.
If a company purchased a fixed asset such as a building, the company’s cash
flow would decrease. The company’s working capital would also decrease since
the cash portion of current assets would be reduced, but current liabilities would
remain unchanged because it would be long-term debt. Conversely, selling a
fixed asset would boost cash flow and working capital.
e) Aging Analysis
Aging analysis of the Accounts Receivable is a critical tool for managing the
business and is widely used by the CSPs. Most of the financing company
will analyze the Accounts Receivables of a company as part of its appraisal
to understand the quality of receivables of a company. Surprisingly, several
companies do not have this valuable report available which is a sure indication
that they are not using it. This part of discussion helps us understand the AR
aging report and why it is important.
What is an aging report?
An aging report groups outstanding invoices into date categories. The categories
are usually on the basis of type of ageing which an analysis would like to make
depending on the size and nature of the business:
The example could be:
Current - Invoices that are within terms.
1 - 45 - Invoices that are 1 to 45 days past due.
46 - 90 - Invoices that are 46 to 90 days past due.
91 -180 - Invoices that are 91 to 180 days past due.
> 180 - Invoices that are more than 180 days past due.
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Uses of Aging Analysis of Accounts Receivable:
An aging report is useful because it gives a snapshot of the money that is
outstanding and due to the company by its customers. It also helps identify
the quality of customers and categorizes them in good and bad. Also, it
helps understanding the customers that are failing behind on their payments
which is a clear sign of an underlying problem. Note that slow payments do
not always indicate financial problems; it could indicate a possible dispute or
misunderstanding. Many companies use this report when planning collections
calls and when trying to forecast their cash flow.
Financing companies, mainly those involved in the business of factoring, will
ask for the aging report because it helps them understand the outstanding
receivables and their quality. This report, in combination with commercial credit
reports, to determine the state of receivable portfolio and its value. As such, the
aging report is a critical component used to create factoring proposals.
Also, the aging report is used in the due diligence process to detect invoices
that pay slowly. The report helps identify possible collection issues. Since
receivables quality directly impacts the cash flow of a company, the aging report
becomes a crucial tool for any finance head of a company.
f) Cost – Volume - Profit Analysis
In the ever-changing business environment in which a company operates, cost
and volume keep changing. In order to understand the behaviour of profitability
of a company, Cost Volume Profit Analysis (CVPA) is used. We can also say
that CVPA is an analysis presenting the impact of cost and volume on profit. It
helps in finding a no-profit-no-loss situation which technically is called breakeven
point of a company. In a similar fashion, CVP analysis can also explain the
number of units of sales required to achieve a targeted operating income.
This analysis operates on a number line, base point is ZERO, below that comes
negative numbers and above that are positive ones. We see the phases in a
company wherein we first see losses, then no-profit-no-loss and then a company
makes profits. In order to safeguard its investment, the company has to achieve
the breakeven point soonest possible. The question is: How much volume of
sales/activity can achieve a breakeven point for a business?
Following are the assumptions of CVP analysis:
It assumes that the total variable costs and revenues would increase or decrease
only due to change in number of units. There are no factors that will affect it.
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The assumption “costs are either variable or fixed” says that all the costs are
either variable or fixed. In other words, it says that there are no semi-variable
or semi-fixed costs.
CVP analysis assumes that there are no changes in the price and variable
costs per unit irrespective of change in time period and relevant range. If we
see closely, it is neglecting the chances of changes in prices due to inflation,
economic conditions etc. Also, neglecting the bulk order discounts and small
order premiums.
CVP analysis helps the management to find out the breakeven point and target
operating income. This technique is mainly used to evaluate any investment
proposal. It also helps setting a sound base for planning the business strategy
of the business.
Since the assumptions used in CPVA may not hold good in a current dynamic
business environment, the management is forced to react and make necessary
changes in prices and costs due to change in economic conditions, customer
bargaining powers, competitors etc. Similarly, all costs cannot be simply
classified as fixed or variable. Finally, the number of units is not the only driver
of total costs and revenues.
nnn
Virtual CFO Service is a great opportunity for all Chartered
Accountants. The different facets of this service is explained in
this publication and it is enticing to share some practical case
studies by comprehending the client requirements, outsourced
CFO role and the impact delivered.
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GLOBAL SERVICE
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BUSINESS GROWN
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The Institute of Chartered Accountants of India
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CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
Practical Case Studies
74
75
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Case Studies: Universal Evolution Advisors (UEA)*
Universal Evolution
Advisors (UEA)* is a
strategy and policy
advisory firm. Founded
in 2001, the company
specializes in global
development. UEA* has
worked in over 90
countries with over 400
clients including
governments,
foundations,
international agencies,
non-governmental
organizations, and
Fortune 500 companies.
Company Profile
Facts
Deal Summary
Industry Ownership Management # of Employees Social Impact
Consulting MNC Professional 50-250 * Names masked for confidentiality.
Client Requirement
 Study the past experience of all employees of the
finance & accounts department as well as current
JDs to understand their roles and responsibilities.
 Buddy- sitting exercise to undertaken with each
F&A team member, to understand their current
roles & the responsibilities taken up by each of
them , time allocation for each task, efficiency
levels etc.
 Review the contract with the outsourced service
provider for accounting, payroll processing &
statutory compliances. A buddy sitting exercise
was also conducted to understand the activities
they are currently doing.
 Since KRAs and KPIs were not predefined,
Outsourced CFO was expected to build and
define KRAs and KPIs for the entire F&A team
Outsourced CFO Role
 Study the current Finance and Accounts
(F&A) structure of the company
 Employees were provided with defined JDs
in accordance with their expertise.
 F&A organization structure were defined to
evaluate optimal team size keeping in view
future requirements & expectations from
F&A
 Appraisal process was based on pre-defined
KRAs/KPIs for F&A team.
 Maker Checker to be built into F&A
processes & incorporated in JDs as well.
 Propose new F&A structure for maximum
efficiency of the F&A team
 The proposed significant increase  Better control functions like as per Outsourced  Lesser review output from  Moved Tally remained when statutory purposes.
 Every team his/her responsibilities resulted in 20- Reduce cost a span of 4 Industry Ownership Management # of
Employees Size Project
Duration
Social Impact
Consulting MNC Professional 50-250 $ 7-10
million 1 month
Facts
1 – Case Studies: Universal Evolution Advisors (UEA)*
Company Profile
Universal Evolution Advisors (UEA)* is a strategy and policy advisory firm. Founded in 2001, the
company specializes in global development. UEA* has worked in over 90 countries with over 400
clients including governments, foundations, international agencies, non-governmental organizations,
and Fortune 500 companies.
*Names masked for confidentiality.
Client Requirement
• Study the past experience of all employees of the finance & accounts department as well as
current JDs to understand their roles and responsibilities.
• Buddy-sitting exercise to undertaken with each F&A team member, to understand their current
roles & the responsibilities taken up by each of them , time allocation for each task, efficiency
levels etc.
• Review the contract with the outsourced service provider for accounting, payroll processing &
statutory compliances. A buddy sitting exercise was also conducted to understand the activities
they are currently doing.
• Since KRAs and KPIs were not predefined, Outsourced CFO was expected to build and define
KRAs and KPIs for the entire F&A team
Outsourced CFO Role
• Study the current Finance and Accounts (F&A) structure of the company
• Employees were provided with defined JDs in accordance with their expertise.
• F&A organization structure were defined to evaluate optimal team size keeping in view future
requirements & expectations from F&A
• Appraisal process was based on pre-defined KRAs/KPIs for F&A team.
• Maker Checker to be built into F&A processes & incorporated in JDs as well.
• Propose new F&A structure for maximum efficiency of the F&A team
Impact Delivered
• The proposed F&A structure ensured that there was no significant increase in cost of
operational staff.
• Better control & efficiency was obtained by moving core functions like tally accounting &
statutory payments in-house, as per Outsourced CFO’ recommendation
• Lesser review time of internal staff due to better quality of output from the in-house staff.
• Moved Tally accounting inhouse so that no legacy issues remained when the company shifted
to quick books for Indian statutory purposes.
• Every team member was given a new time allocation for his/her responsibilities for optimizing
time management that resulted in 20-45% time saving in all F&A team members.
• Reduce cost of external outsourced F&A team by over 90% in a span of 4 years.
Deal Summary
76
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of
Employees
ROI on
Fee Size Project
Duration
NBFC Majority
PE Owned Professional 50-250 ~4.8x $ 7-10
million
40
months
Facts
2 – Case Studies: Loan Mate*
Company Profile
Loan Mate* is a company operating in the unsecured financing space. The company is principally
engaged in providing unsecured loans to people who cannot access the normal banking channels.
Outsourced CFO has been involved with this company for the last 40 months
*Names masked for confidentiality.
Client Requirement
• Assistance in building multiple scenarios & sensitivity around the exiting business plan
• Assistance in putting in place and tracking performance management metrics
• IT enabling the business through implementing an ERP
• Putting in place mechanisms to track efficiency of sales and marketing efforts of both the
‘internal sales team’ and the ‘DSA’.
• Cash flow management and forecasting, Building internal controls on cash management
• Development of a costing and pricing model
Outsourced CFO Role
• Revenue streams & Fixed costs were identified
• Costs were also split into discretionary (Specific marketing costs) and non-discretionary and as
direct and indirect
• Introduced the concept of actual (accounting based on accrual) and notional (notional cost of
equity/capital) costs which allowed the company to track the P&L based on both the aspects
• Introduced a 3 level margin analysis (a) Gross Margin (Interest income minus interest expense) (b)
Gross Margin 2 (Gross Margin minus direct cost involving business development costs as well as
notional provision for NPA/bad debts and (c) Gross Margin 3 (Gross Margin 2 minus corporate
overheads)
• Costing at a customer or portfolio level allowing the company to track profitability at a Sales
person/DSA level
Impact Delivered
• Complete alignment on the definition of how business performance would be measured
(borrower, portfolio, geography, channel and company level) and in pursuing discussions with
the CEO & business heads
• Multiple cost dimensions allowed the company to tag the costs at a transaction level thereby
making it easy to slice and dice costs across various dimensions. Assisted in setting clear ‘cost
reduction’ targets
• Customer and portfolio profitability allowed the company to make decisions on to lend or to
invest the funds into liquid mutual funds which eventually gave ‘margins’ of 8%
• The notional P&L allowed the company to track performance based on ‘Cost of capital’ or
‘Opportunity cost’
• The 3 level margin analysis allowed the management to understand the impact of costs at
various levels at any given point in time and helped to decide the pricing and take quicker
decisions without the need to check with the head office
Deal Summary
Case Studies: Loan Mate*
Loan Mate* is a
company operating in
the unsecured financing
space. The company is
principally engaged in
providing unsecured
loans to people who
cannot access the
normal banking
channels. Outsourced
CFO has been involved
with this company for
the last 40 months
Company Profile
Facts
Deal Summary
Industry Ownership Management # of Employees ROI on Fee Size NBFC Majority PE Owned Professional 50-250 ~4.8x $ 7-10 million * Names masked for confidentiality.
Client Requirement
 Assistance in building multiple scenarios &
sensitivity around the exiting business plan
 Assistance in putting in place and tracking
performance management metrics
 IT enabling the business through implementing
an ERP
 Putting in place mechanisms to track efficiency of
sales and marketing efforts of both the ‘internal
sales team’ and the ‘DSA’.
 Cash flow management and forecasting, Building
internal controls on cash management
 Development of a costing and pricing model
Outsourced CFO Role
 Revenue streams & Fixed costs were identified
 Costs were also split into discretionary (Specific
marketing costs) and non-discretionary and as
direct and indirect
 Introduced the concept of actual (accounting based
on accrual) and notional (notional cost of
equity/capital) costs which allowed the company to
track the P&L based on both the aspects
 Introduced a 3 level margin analysis (a) Gross
Margin (Interest income minus interest expense)
(b) Gross Margin 2 (Gross Margin minus direct cost
involving business development costs as well as
notional provision for NPA/ bad debts and (c) Gross
Margin 3 (Gross Margin 2 minus corporate
overheads)
 Costing at a customer or portfolio level allowing the
company to track profitability at a Sales person/
DSA level
Impact  Complete alignment on the performance would be measured geography, channel and company discussions with the CEO &  Multiple cost dimensions costs at a transaction level and dice costs across various clear ‘cost reduction’ targets
 Customer and portfolio profitability to make decisions on to lend mutual funds which eventually  The notional P&L allowed based on ‘Cost of capital’  The 3 level margin analysis understand the impact of given point in time and helped take quicker decisions without head office
77
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of
Employees Size Project
Duration
F&B Private Limited
Company
Family
Managed 100-250 $2-4
million 36 months
Facts
3 – Case Studies: Arab Cuisine*
Company Profile
Arab Cuisine* founded in the year 2000, is a fast growing Arabic restaurant chain with over 14 outlets
largely in Mumbai and Pune. The Chain is PE invested.
*Names masked for confidentiality.
Client Requirement
• Lead the F&A team under the CFO role
• Take on multiple responsibilities under a 180-day operating plan
• Review the internal processes and implement key internal controls
• Manage Inventory management tool and ERP system
• Improve cash flow management and weed out inefficiencies in the working capital cycle
Outsourced CFO Role
• Championed the process of finalizing the budgets and financial forecasts
• Incorporated key metrics for CEO and Professional Investor in monthly MIS
• 1 – hour weekly review of all 180 day initiatives, a single window to the Promoter to
check progress, take decisions and clear road blocks(if any)
• Monitored internal audit, framed key accounting policies and SOPs for finance processes
Impact Delivered
• 30% time reduction in budgeting and tracking performance
• 40% improvement in the average debtor collection period
• Better visibility on measurement and reporting of key performance metrics resulted
in better business management
Deal Summary
78
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership
Management # of Employees
ROI on
Fee Size
Size of
Global
Parent
Project
Duration
Packaged
Foods MNC Professional 250-500 3.2x
$100-
$250
million
$25-30
billion 2 months
Facts
4 – Case Studies: Nutriland*
Company Profile
Nutriland* is a INR 600 Cr FMCG MNC started business in 2012, through the acquisition of the
nutrition business owned by Wockhardt Group. The challenges faced by the FP&A team lead to the
thought & decision of developing a tool for - Multiple reporting requirements globally, Increased
frequency of reporting forecasts, Budgeting/forecasting activity being considered as finance kitchen,
ownership issues on the numbers used for forecasting & Lack of complete visibility & accuracy on
back end data used for forecasting by business
*Names masked for confidentiality.
Client Requirement
Outsourced CFO had been mandated of developing an excel based ‘Rolling Forecast Tool’ for their life nutrition
business. Outsourced CFO Role included,
• Implementing a robust monthly/quarterly ‘Rolling Forecasts’ Reporting model.
• Reviewing the current process & putting together a framework to involve all departments in the process.
• Enabling variance analysis using different parameters & at different granularity levels
• Building capabilities for simulations & for evaluating ‘what if’ scenarios
• Identifying key variables/drivers both external and internal & using them to build the model.
• Dashboarding to report key financial and operational parameters which can be used in management meetings
Outsourced CFO Role
Outsourced CFO’s approached by conducting a one month diagnostic followed by the model building phase
• Buddy sitting with HODs to understand their expectations
• Sessions with HOD nominated SPOCs for in-depth understanding of the existing forecasting process &
templates being used currently
• Presentation of the ‘Approach Paper’ with timelines based on above.
• Developing the structure of the excel templates
• Sign -off of SPOCs/HODs and F&A team on the structure
• Model building using the agreed structure.
• Testing & Interim reviews by SPOCs & F&A team
• Final review & sign-off by HODs & CFO
Impact Delivered
• Complete alignment on the definition of how business performance would be budgeted & measured
(variables & business drivers) and Establish a clear hierarchy for decision making
• The model with Driver-based planning and scenario management provided improved visibility and
monitoring capabilities
Estimated time saving of the F&A team and the CFO w.r.t the activity of forecasting.
Resources Involved Before Outsourced CFO’s Model
(days per month)
After Outsourced CFO’s Model
(days per month)
CFO 2 0.75
FP&A Team 9 3.5
Deal Summary
79
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of Employees Size Project
Duration
FMCG Family Owned Family Managed 700-900 $80-100
million 24 months
Facts
5 – Case Studies: MAAL Group*
Company Profile
MAAL Group* is a UAE based, family owned company running a chain of hypermarkets & supermarkets. The
company’s annual sales revenue is around AED 500 Mn last year (Over INR 900 Cr). MAAL runs 27 retail and
2 C&C stores spread out in Abu Dhabi, Sharjah & Dubai and employs more than 1000 personnel hailing
from multinational and multicultural background
*Names masked for confidentiality.
Client Requirement
• Procurement Process and Internal control improvement in the specific areas
• Review, Direct, Co-ordinate Planning and Budgetary function, Inventory management and Cost optimization,
New project feasibility,
• Monthly financial performance and reporting with variance analysis
• Assurance Audit for the year 2013, 2014 and 2015
• Competitors Benchmarking
• Assistance in Microsoft AX migration and implementation
Outsourced CFO Role
• Identified issues and inefficiencies by thorough analysis of data - Analyzed top SKU’s and imported SKU’s to
understand AED 7.33 Mn valued SKU’s were overstocked on which additional estimated financial charges of
AED 365K was incurred
• Identify and evaluate the opportunity of further improvement and cost reduction in specific areas like
Logistics, Employment Cost and DMD Function
• Implemented best processes, restructured approval hierarchies and Chart of Accounts, vendor master, location
master, etc. – Assistance in Audits
• Initiated detailed MIS pack and dashboards for visibility and started formal review mechanism to highlight
key gaps or issues
Impact Delivered
• Replenishment Lead time for all SKU and avoiding the over and under stock - Current avg. margin of 23
different categories is 15% which to further increase this up to 16% to 16.5%
• Analysis results showed Optimization of vehicle maintenance, Standardization of manpower at stores
and Offshoring of DMD function will annually save more than AED 1Mn
• Feasibility reports & Analysis reports assisted in faster and informed decision making for newer stores or
products. Improved Coordination between the management team
• Reduced Current Shrinkage of inventory reported (2%) of sales to between 0.5% to 1% in line with
Industry benchmark of 0.5%
• To check on the YOY increase in debt - Made the First draft of 3 years Martial Plan to bring down the
long term debts up to level of annualized EBIDA in 3.5 years
• Assistance in providing PL Visibilities to divisional heads and identification of multiple areas for cost
optimization – implementation is work in progress
Deal Summary
80
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of Employees Size Project
Duration
Automobile Family Owned Family Managed 125-250 $10-15
million 12 months
Facts
6 – Case Studies: JAL*
Company Profile
JAL* is a manufacturer of gears and gear shafts for automotive, agricultural, earth moving equipment and
industrial applications. JAL* was incorporated in the year 1980 and started manufacturing gears in the year
1996. From 1881 to 1996, the company was in the field of manufacturing automotive bulbs. Today JAL*
manufactures 15 million gears with an annual turnover of around ₹ 100 crores.
*Names masked for confidentiality.
Client Requirement
• ERP Optimisation
• MIS and Budgeting
• Cost Optimisation
• Working Capital Management
• SOPs
Outsourced CFO Role
• Re-organization of entire Finance and Accounts team
• Set-up MIS and review frameworks, which involved setting KPI’s, preparing MIS
templates, setting review mechanism, etc.
• Automation of finance process through optimum utilization of in-house ERP
• GAP Analysis
Impact Delivered
• Time savings of around 35% for F&A team
• Monthly close by 7th of the following month
• Savings in working capital to the tune of around 2 Crs. In a period of 3 months by
multiple measures including reduction in DSO
• Plan for better profitable growth by introducing budgeting system
Deal Summary
81
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of Employees Size
Consumer Goods Family Owned Professional 150-200 $50-75 million
Facts
7 – Case Studies: Comfit*
Company Profile
Comfit* is a member of International Sleep Products Association [ISPA] and a leading Indian & international
brand manufacturing sleep products. Over the years Comfit has evolved from mattress manufacturing plant
to a sleep products company with wide range that includes pillows, cushions, spring mattresses, polyurethane
foam and high tech comfort system. Comfit has 6 factories across 3 Indian states and caters to customers
in 16 states
*Names masked for confidentiality.
Client Requirement
• Conduct a Process Study to provide recommendations on the present gaps in the processes
and possible improvement plan
• Play a hands on, practical implementation team doing a detailed study and review the As
Is processes and map it against the To Be processes
• Assistance in improving the existing controls specially for inventory management
• Define performance indicators for the business
• Assistance in building a robust costing system.
Outsourced CFO Role
• Outsourced CFO competed the project by studying the process in a phased manner for the
6 factories
• Reviewed and studied all the processes and activities within the factory
• Designed As Is process maps covering minute activities with all processes and sub processes
within the factory
• On completion of process mapping gap analysis was under taken highlighting risk and
challenges in process
• Efficiency studies were undertaken for each area within factory
• Simultaneously operational MIS for factory was undertaken.
Impact Delivered
• Comprehensive document with As Is process (the document mapped all processes)
• Detailed gap analysis study along with controls/suggestions to address the gaps
identified in process
• Reduced operational ambiguity and showcased areas for Machine/Process efficiency,
Space efficiency and Power efficiency
• Greater efficiency (and cost savings) with existing applications and processes like FTE
and manpower
• Regular in time MIS & Tracker assisted in improved decision making Weekly & Monthly
Factory/Sales MIS.
• Assisted in documenting Costing and Inventory Valuation guidelines, Greater team
satisfaction as collaboration and best practices
Deal Summary
82
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of Employees ROI on Fee Size Project Duration
Social
Enterprise
(Education)
Social Impact
Fund of Large
MNC
Professional 25-50 ~$2 million $55-60
billion 18 months
Facts
8 – Case Studies: EduMate*
Company Profile
EduMate* is a 3 year old, Social Impact venture, funded by two renowned social foundations. EduMate
provides easy access to quality education to under privileged children. It runs more than 70 centres in
different communities in Delhi. Management is professional but on ground execution is heavily dependent
on local staff with limited managerial and leadership capability.
*Names masked for confidentiality.
Client Requirement
• Stabilise a nascent business model that will minimize cash burn while maximizing efficiency (cost
per student)
• Develop sensitivity analysis and scenario mapping to help the CEO run the business better
• Implement performance measurement systems, to provide on-time, regular and accurate inputs
to field staff
Outsourced CFO Role
• Studied the existing business model, processes and team capability and came up with practical
action points, keeping in mind severe constraints in terms of market pricing, new centre roll outs
and stability of student numbers in classes
• Gradually won the support of the field staff and helped in moving accountability for performance
from the COO to individual team members on the field
• Engaged in weekly reviews with under-performing centres, fortnightly reviews with area level
managers and monthly reviews with Management/Board, on operating and financial metrics
• Engaged at a Board level to draw on the Board’s experience in running similar social impact
models, aimed at the bottom of the pyramid; helped the company to get better direction and
decisions from the Board, on centre expansions and cash utilization
• Helped in the development of detailed budget, down to centre-level economics, against which
actuals are now being tracked
Impact Delivered
• Timely and accurate Operating and Financial MIS by 5th of next month and target setting
and weekly monitoring at a company, area, community and centre level
• Helped in deciding to shut down chronically under-performing centres, saving on cash losses
and turned around performance in 7 out of 12 under-performing centres
• Deployment of investable surplus in liquid funds to generate interest income (outcome of
reliable rolling cash flow forecasts)
• Tighter control on procurement of materials, reducing working capital by 10%
• 100% compliances on time; complete ownership of F&A team freed up significant time for COO
to focus on business operations
• Board Pack circulated to Board 10 days before every Board meeting
Deal Summary
Case Studies: EduMate*
8
EduMate* is a 3 year
old, Social Impact
venture, funded by two
renowned social
foundations. EduMate
provides easy access to
quality education to
under privileged
children. It runs more
than 70 centres in
different communities in
Delhi. Management is
professional but on
ground execution is
heavily dependent on
local staff with limited
managerial and
leadership capability.
Company Profile
Facts
Deal Summary
Industry Ownership Management # of Employees ROI on Fee Size Project Duration
Social Enterprise
(Education) Social Impact Fund of Large MNC Professional 25-50 ~$2 million $55-60 billion 18 months
* Names masked for confidentiality.
Client Requirement
 Stabilise a nascent business model that will
minimize cash burn while maximizing efficiency
(cost per student)
 Develop sensitivity analysis and scenario mapping
to help the CEO run the business better
 Implement performance measurement systems, to
provide on-time, regular and accurate inputs to
field staff
Outsourced CFO Role
 Studied the existing business model, processes and team
capability and came up with practical action points, keeping
in mind severe constraints in terms of market pricing, new
centre roll outs and stability of student numbers in classes
 Gradually won the support of the field staff and helped in
moving accountability for performance from the COO to
individual team members on the field
 Engaged in weekly reviews with under-performing centres,
fortnightly reviews with area level managers and monthly
reviews with Management/ Board, on operating and
financial metrics
 Engaged at a Board level to draw on the Board’s experience
in running similar social impact models, aimed at the bottom
of the pyramid; helped the company to get better direction
and decisions from the Board, on centre expansions and cash
utilization
 Helped in the development of detailed budget, down to
centre-level economics, against which actuals are now being
tracked
Impact Delivered
 Timely and accurate Operating and Financial MIS by 5th
of next month and target setting and weekly monitoring
at a company, area, community and centre level
 Helped in deciding to shut down chronically underperforming
centres, saving on cash losses and turned
around performance in 7 out of 12 under-performing
centres
 Deployment of investable surplus in liquid funds to
generate interest income (outcome of reliable rolling cash
flow forecasts)
 Tighter control on procurement of materials, reducing
working capital by 10%
 100% compliances on time; complete ownership of F&A
team freed up significant time for COO to focus on
business operations
 Board Pack circulated to Board 10 days before every
Board meeting
83
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of Employees Size Project
Duration
Business
Management Private Professional 200-350 $4-6 million 1 months
Facts
9 – Case Studies: SIMS*
Company Profile
SIMS* is a captive DPO for the Simba* group, a separate entity, a private limited company with a topline of
about INR ~35 crores, assisting the larger sister concerns of the Simba* Group, such as Simba* Tractors and
the Auto Commercial Passenger segment. Simba* is a large group, comprising of about 60-70 odd entities.
*Names masked for confidentiality.
Client Requirement
• Assess the finance and support functions of the SIMS
• Assess the CFO’s function and the role that he played
• Gain an understanding of the process and systems adopted by the finance and accounts
functions
• Discuss the key observations and recommendations with the SMIS management to agree upon
action plans and timelines for implementing said recommendations
Outsourced CFO Role
• Conducted an independent assessment of the CFO’s function, in terms of people, process and
systems
• Provided a list of recommendations to improve the functions considering the size, nature and
complexity of MIBS operations.
• Realized the need of practical risk management, which until now was only a concept was only
applied on paper. Outsourced CFO developed a risk and control matrix additionally to look at
internal control systems in a very stringent manner, which was not done in this case
Impact Delivered
• Developed a CFO’s functional assessment dashboard, in order to understand the areas where
skills were matured, work in progress projects and their weak areas
• Provided an independent validation of the role being played by the CFO’s office, both from a
strategic perspective and a finance operational perspective
• Moved them from a SAP module (which Outsourced CFO felt was too sophisticated for a INR
30cr business) to a much simpler accounting system. Outsourced CFO used a similar ‘critique’
lens over their timesheet systems, RMS, planning, forecasting and budgeting systems
• Positioned the CFO as a strategic advisor to the business for strategic agenda development or
strategic business monitoring.
• Strengthened the role of the CFO in contract negotiation & contract pricing
• Outsourced CFO recognized the need for SOPs to be drawn up for monthly closing process,
accounts payable, budget setting, payroll finalisation and client invoicing
Deal Summary
84
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of Employees Size of Global
Parent
Project
Duration
Telecom MNC Professional 5000-5500 $80-100 billion 33 months
Facts
10 – Case Studies: TTBS*
Company Profile
TTBS is one of India’s leading enabler of telecom services and is part of a $80 billion conglomerate. With
services ranging from connectivity, collaboration, cloud, security, IoT and marketing solutions, they offer the
largest portfolio of ICT services for businesses in India.
*Names masked for confidentiality.
Client Requirement
• Improve company environment & reduce attrition rate
• Help the company navigate its way through industrial change
• Staff augmentation to enable better handling of projects
• Help with data gathering and due diligence for pending deals
• Help fulfil any other pending tasks
Outsourced CFO Role
• Providing candidates across different departments
• Departments included Taxation, FP&A, M&A and R2R
• Provide candidates and also to give them guidance
• Provide a SPOC from our team to discuss with the managers their issues and visit them on
weekly basis
Impact Delivered
• Provided 11 candidates across different departments to help with necessities like MIS,
Payments, etc.
• Provided expertise in departments like Taxation, FP&A, Due Diligence, M&A, R2r & Audits
and help close deals still in the pipeline
• Started with 06 months and then extended by another 06 months
Deal Summary
85
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of Employees Size Project
Duration
Healthcare –
Pharmaceutical Public Professional 126,000-150,000
globally $ 50-75 billion 6 months
Facts
11 – Case Studies: NRT*
Company Profile
NRT* is one of the largest multinational pharmaceutical companies in the world. As a part of its global
product portfolio transformation, NRT spun off its Over-The-Counter Division (OTC Division) in one of its
global subsidiaries to a Joint Venture with OGS (Acquirer). The transaction was structured as a ‘sale of
business’ for a consideration of ~USD 20million. Practus was called in by NRT as Interim CFO for the OTC
division to project manage the transition of accounting and financial processes.
*Names masked for confidentiality.
Client Requirement
• Delivering on-time, regular and accurate reporting data as per Global Reporting standards of NRT
till ‘Closing Date’ and as per OGS standards from the Closing Date
• Deliver variance analysis and management commentary for decision making to ORG on a monthly
basis
• Contract novation
• Finalising ‘cut over’ of data from legacy system (SAP)
Outsourced CFO Role
• Old outstanding vendor balances were settled and No Dues Certificate was obtained from all
major vendors
• Novated contracts of ~130 active vendors and ~65 active customers
• Facilitated stock count and transfer of ~1,300 SKUs of Raw Material and Finished Goods inventory
• Computed provisions for dues to Distribution Agents
• Facilitated de-activation of all GL Codes and Cost Centres relating to OTC Division in legacy SAP
• Warehoused all pending litigation and tax matters relating to OTC division
Impact Delivered
• All vendor accounts settled within ~45 days of Closing Date
• Month closing of OTC division completed in OGS’ ERP (Oracle) within 50 days of Closing Date
• 90% of contract novation’s completed within 21 days of Closing and 99% within 45 days
• 100% compliance with Financial and management reporting timelines to NRT and OGS, for
all months of the engagement
• Coordinated and ensured 100% compliance with actions agreed for Finance and Accounts
matters, in weekly Steering Committee meetings
• Traced, quantified the exposure and ensured systematic documentation of ~100 legacy
pending legal and tax matters, for further resolution by NRT team
Deal Summary
Case Studies: NRT*
NRT* is one of the largest
multinational
pharmaceutical companies
in the world. As a part of
its global product portfolio
transformation, NRT spun
off its Over-The-Counter
Division (OTC Division) in
one of its global
subsidiaries to a Joint
Venture with OGS
(Acquirer). The transaction
was structured as a ‘sale of
business’ for a
consideration of ~USD
20million. Practus was
called in by NRT as Interim
CFO for the OTC division to
project manage the
transition of accounting
and financial processes.
Company Profile
Facts
Deal Summary
Industry Ownership Management # of Employees Healthcare –
Pharmaceutical Public Professional 126,000-150,000
globally $ 50-* Names masked for confidentiality.
Client Requirement
 Delivering on-time, regular and accurate
reporting data as per Global Reporting
standards of NRT till ‘Closing Date’ and as
per OGS standards from the Closing Date
 Deliver variance analysis and management
commentary for decision making to ORG on
a monthly basis
 Contract novation
 Finalising ‘cut over’ of data from legacy
system (SAP)
Outsourced CFO Role
 Old outstanding vendor balances were settled
and No Dues Certificate was obtained from all
major vendors
 Novated contracts of ~130 active vendors and
~65 active customers
 Facilitated stock count and transfer of ~1,300
SKUs of Raw Material and Finished Goods
inventory
 Computed provisions for dues to Distribution
Agents
 Facilitated de-activation of all GL Codes and Cost
Centres relating to OTC Division in legacy SAP
 Warehoused all pending litigation and tax
matters relating to OTC division
 All vendor accounts Date
 Month closing (Oracle) within  90% of contract Closing and 99%  100% compliance reporting timelines engagement
 Coordinated agreed for Finance Steering Committee  Traced, quantified documentation matters, for
86
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of Employees Size Project
Duration
F&B Privately
Held Professional 500-750 $250-300
million 18 months
Facts
12 – Case Studies: SF Foods*
Company Profile
SF Foods is a food services and a restaurant company operating stores across various brands: KFC, Pizza
Hut and Delifrance.It is one of the two key franchisees in India for an American fast food operator of Taco
Bell, KFC, Pizza Hut and Wingstreet. SF Foods has taken over around 280 outlets in India & Sri lanka. SF
today is company having more than 9000 people and turnover of around 700 Crores . Post acquisition, SF
has operating and having development rights in 15 states of India
*Names masked for confidentiality.
Client Requirement
• Identify & study the existing processes of the franchisees, recommend and implement best
practices
• Assist the client in pre-deal closure and obtaining/transfer all the operating licenses to the new
company
• Assistance in getting all statutory Registrations at Pan India Level
• Collating required data from different ERPs and IT Systems
• Significant increase in business & financial reporting request from the Investors & promoters
Outsourced CFO Role
• Implemented best processes & comprehensive SOP documents, Developed of Approval
Hierarchies, Chart of Accounts, vendor master, location master, etc.
• Set up of entire Banking & Treasury, Finalized the vendor Invoice processing, AR processing,
Project Accounting & FA managements
• Various Automations & Customizations in ERP system for Accurate & timely financial &
management reporting
• Building operating Budget for 2016-17 to track actuals vs. Budgeted
Impact Delivered
• Acquired operating licenses and statutory Registrations at PAN India level
• Started Pan India level operation of Initial 100 stores within 2 months of our engagement
• Implementation of best practices & integrated IT systems
• Positive EBITA post consolidation of the business
• Manage the entire volume of Finance function and operation in spite of unavailability of
clients finance team
• Assistance in taking business decision through robotics MIS, Dash Boards & BI tools
Deal Summary
87
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of Employees Size Project
Duration
Professional
Services PE Backed Professional 20,000-22,000 $100-200
million 6 months
Facts
13 – Case Studies: Paypro*
Company Profile
A large India and Southeast Asia focused Private Equity firm acquired a global human resource firm’s (AH*)
payroll processing business (Paypro*) in the Asia Pacific region which covered 600 very large corporations
in the Asia Pacific region. Paypro has significant business in China, Hong Kong Singapore and India, run
through 4 different legal entities with back office in India. Practus was called in by the PE Fund to act as
Interim CFO and manage the transition
*Names masked for confidentiality.
Client Requirement
• Practus was called in as Interim CFO role to manage day to day operations and manage the transition
process from PayPro to NewCo
• Ensure that the contract novation of Paypro customers was done in favour of NewCo
• Assist in implementing terms in SHA, involving Singapore HoldCo infusing cash in India NewCo, which in
turn acquired Paypro India business
• Cash flow management and forecasting, including making sure red flags were being raised to investors for
any interim cashflow support
• Put in place of initial systems and processes, so that the business operations could be streamlined and
automated quickly
Outsourced CFO Role
• Manage entire subsidiary structure for shares transitions & business purchase agreements. Involvement in
interactions with external advisors for study of transfer pricing regulations and coordination with investors
• Ensured Novation of the 500+ client contracts having varied terms within time and mapped them to more
than 50 clauses while each of these clauses had anywhere between 1 to 10 variations for consideration.
Created a MS Access database with parameterized contract terms and document storage
• Project managed transition plan and worked with the operations team to ensure the whole engagement is
completed within 6 months
• Prepared bridge for working capital facility with weekly forecasts and red flagging mechanism
• Assisted in setting up the new accounting systems and processes, setting up delegation of authority matrix
and involved in computation of the Purchase price consideration and calculation of Goodwill along with a
Big 4 firm
Impact Delivered
• Advance Cashflow call outs to investors assisted them with enough time to arrange the funds and meet
requirements in time
• Achieved 95% of contract novation within 15 weeks of coming on board
• Opening of bank accounts within 4 week of commencement of the engagement and smooth banking
operations and relationship
• Implementation of systems and Processes – Tally ERP for accounting, control over PO commitments and
Timely delivery of MIS Reports
• Creation of database repository in MS Access for entire existing and new novated 500+ contracts and
addendums in within two months
• Allowed adequate time for the new CFO to be able to settle into this role while Practus in parallel
assisting in operations and managed smooth transitioning of the role during his initial period
Deal Summary
88
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management Tool TCO Size Project
Duration
Vacation
Cruises MNC Professional GIDE <$20,000 $3-5 billion
globally ~2 months
Facts
14 – Case Studies: Titanic Cruises*
Company Profile
Titanic Cruises*, a British cruise line, is the world’s largest cruise operator comprising of 10 distinct brands
and has over 250 different cruise itineraries available between 2-21 days in length. Titanic Cruises* is the
oldest cruise line in the world, having operated the world’s first commercial passenger ships in the early
19th century.
*Names masked for confidentiality.
Client Requirement
The company had manual & time consuming process for forecasting & budgeting with complicated
& unorganised data in rigid model with limited scope for analysis and wanted to map its business
processes and document SOPs hence required assistance in
• Designing process controls & audit checks
• Defining terms for SLA & Mapping transition of new brand
• Review and improve existing forecasting and budgeting model
• Converting the complicated & unorganised data into data that can be used in forecasting -
Create a dynamic budgeting tool
• Business Process Mapping
Outsourced CFO Role
• Defined & automated the whole exercise with Single assumption sheet with capability to include
new brands, accounts, etc
• Implemented SOP with self explanatory flow charts for future references
• Built a dynamic model with inbuilt what if scenarios analysis
• Defined terms for Service Level Agreement with new brand
• Created permanent back up & format of document for transition of other brands
• Provided SOP with self explanatory flow charts for future references
Impact Delivered
• Implementation of Single data entry sheet covering all the requirements of tool with all the
calculations linked to it – Improved the Controls and Efficiency & reduced user efforts
• Automated forecasting for 12 months on the basis of assumptions and actuals which took care
of Dual financial reporting requirement (UK & India) within single forecasting tool
• Tool Covers monthly, quarterly or annually comparatives between actuals v/s forecasts v/s budgets
between along with graphical presentation of data wherever required for improved decision
making
• Automation - Actuals linked to the source file directly to the tally source file to reduce user
efforts of changing formats and Lowered manual dependencies for Analysis and reporting.
• Easy transition of other brands due to Outsourced CFO’s business process documentation with
self explanatory flow charts, RACI metrics, TAT for each activity & escalation metrics
• Better utilization of Senior Management’s time in more productive activities
Deal Summary
89
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of
Employees ROI on Fee Size Project
Duration
Consumer
Staples MNC Professional 200-350 8x $200-300
million 30 months
Facts
15 – Case Studies: SDK*
Company Profile
SDK* is a Swedish-Danish company and one of the largest producer of high-value added vegetable oils
and fats. The company took over 51% stake in an Indian promoter driven company. The company faced
challenges in integration on account of differences in cultures, separation of KMP in Finance and lack of a
proper handover.
*Names masked for confidentiality.
Client Requirement
• Outsourced CFO was called in an Interim role to manage the day to day operations and stabilize
the F&A department
• Implement commodity and forex risk management frameworks and Implement internal controls
in line with SDK policy
• Daily Cashflow and risk monitoring and coordination with Global Treasury Team
• Implement Budgeting, Forecasting and performance management systems in line with SDK policy
• Recruit new team members in F&A
• Roll out ERP
• Participate in all Management Committee meetings and Integration Steering committee calls
• Transition from a small CA audit firm to a Big4, without audit qualifications in Year 1
Outsourced CFO Role
• Framing and monitoring of Commodity Risk & Currency Risk Management Policy
• Ensured mitigation of volatility of Risk through setting up volume limits (Oil type wise open
positions) as well as monetary exposure limit (open interest in both oil and currency)
• Conversion of IGAAP Financial Statements to IFRS for monthly consolidation and alignment of
Group Accounting policies
• Shifting of focus from Import to Local Procurement to control volatility
• Managed compliance with Global Covenants by raising of Funds in India with Zero Collateral
against Credit Facilities from Banks
• Reduced cost of funding through negotiation with banks
• Designing of IFC Controls Framework covering key business areas and introduced compensatory
manual controls
• Recognition of Sales revenue in line with IFRS requirements
Impact Delivered
• Time taken to publish monthly MIS from 15 days to 4 days for consolidation of India MIS at
SDK group level
• Focus on Building Strong Team - Not a single resignations post Outsourced CFO entry and
managed smooth transition of CFO Functions from Outsourced CFO to newly joined ‘employee
CFO’ at the end of 12 months
• Improvement in Debtors Credit Period from 30 (contractual) to 16 Days - Achieved the title
of Best Cash Management Team across all Group Companies Worldwide last year
• Inventory holding reduced from 30,000 MT to 16,000 MT
• Satisfactory completion of Statutory Audit for period ending 31st Mar’17, including Group
Audit for period ending Dec’16
• Achieved Credit Rating Improvement by two notch -from “BBB –ve to A –ve” by Ratings Agency
which in turn helped in reducing Finance Costs by almost 50% because of improvement in
ratings
Deal Summary
90
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of
Employees
ROI on
Fee Size Project
Duration
Manufacturing Public Limited
Company Family Managed 210-350 4x $70-100 million 12 months
Facts
16 – Case Studies: Precision Systems *
Company Profile
Precision Systems** (PS) is a 40 year old company involved in manufacturing auto fasteners and having Joint
Ventures, License Agreements, and Alliances with different fastening companies globally. The company was
passing through difficult times - incurring huge cash losses and the net worth being negative.
*Names masked for confidentiality.
Client Requirement
• Outsourced CFO has been called in for a Interim CFO engagement
• Assistance in providing a settlement plan between promoter’s family
• Partnering the MD to put the company back on growth trajectory
• Assistance in Restructuring of borrowing arrangements with bankers and NBFCs to reduce cost
of funding
• Assist in Finding new sources of debt and/or equity capital
• Roll out Business Process improvement and Automation initiative
• Implement Cost optimization initiatives and Improve inventory turnover and debt servicing to
EBIDTA ratio
Outsourced CFO Role
• Engaged in multiple rounds of discussions and ensured detailed interactions with key stakeholders
- Currently in the process of resolving the differences and by developing a family settlement plan
which satisfies one and all
• Restoring Financial Discipline - Tightened internal controls to ensure no revenue leakage
• Assistance in Providing a bridge financing that is necessary for company survival and represent
and get involved in complex negotiations for Debt re-financing/borrowing arrangements
• Cost Optimization initiative undertaken to Reduce costs and prioritize spends and improve
operational efficiencies.
• Regular detailed MIS reports for assistance in better management decisions
• Reviewed present processes and embarked on a process improvement and Automation initiatives
Impact Delivered
• The company benefited from Business Process Improvement measures and streamlining of
Finance procedures which resulted in Better Management
• Achieved Liquidity improvement by instituting solid management practices Cost Optimization
initiatives yielded Cash profit and improved working capital and process efficiency
• Better and improved Market capitalization - weeding out unprofitable products lines/operating
units and selectively increasing prices on high value lines, thereby improving margins and
improving earnings and cash flow dramatically.
• Control systems development assisted in going beyond the cash flow pipeline controls and also
concentrate on operational control system
• Maintenance of tight financial discipline and Financial evaluation of strategic-growth decisions
using simple financial models put the company Back on growth path
Deal Summary
91
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of
Employees
ROI on
Fee Size Project
Duration
Professional
Services MNC Professional 5000-5500 25x $600-700 million 36 months
Facts
17 – Case Studies: VoyagePapers*
Company Profile
VoyagePapers* is the world’s largest outsourcing and technology services specialist for governments and
diplomatic missions worldwide. With 2214 Visa Application Centres (VACs) and operations in 126 countries,
VoyagePapers serves the interests of 50 client governments.
*Names masked for confidentiality.
Client Requirement
• Practus was mandated as an Integration Specialist and appointed as a PMO for integrating
InfoT** with VP**
• Lead the project Integration Planning exercise along with the key stake holders
• Advisory and Execution support to line management in specific workstreams like HR and
synergies
• PMO also involved in identification of cost synergies for VP**
• Monitor, Report and provide Assurance to stakeholders on the integration progress
Outsourced CFO Role
• Integration Planning included:
• Detailed reading of Entity Structuring Memos, Due Diligence reports, SPA amongst others
• Providing detailed plan for 5 workstreams – HR, Synergy, Finance, Ops and IT
• Execution and Support included:
• HR – Communication strategy, grade alignment, development of integrated organisational
structure
• Synergy – Preparation of efficiency benchmarking models, VAC consolidation simulations and
developing a monitoring mechanism
Impact Delivered
• Cost savings of ~ USD 1 million achieved in the span of 6 months
• Helped provide visibility on integration to the management by providing weekly progress
trackers
• Enabled the business to understand synergies at risk. For eg, Practus estimated that synergy
of CHF 0.80 million is at risk over rationalisation of key corporate & admin staff
• Practus took control of synergies workstream and insured synergy estimates worth ~ USD 6
million
• Provided Inputs to the Management for culture/people integration
Deal Summary
92
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of Employees Size Project
Duration
Industrials PE Backed Professional 400-500 $100-150
million 36 months
Facts
18 – Case Studies: Mona Tolls*
Company Profile
Mona Tolls* is one of India’s fastest growing infrastructure developers. The Group has diversified to include
Infrastructure, EPC, Realty, Technology and Natural Resources in its fold. The Group has a turnover of around
INR 800 Million and is currently executing 32 projects in 15 states in India.
*Names masked for confidentiality.
Client Requirement
• Attending Board Meeting and Other Review Meetings of Company
• Drive the preparation, management and presentation of Budget of Company
• Finalization of Books of Accounts as IGAAP and INDAS for the FY 2016-17
• Finalization of Statutory Audit of STPL of FY 16-17
• Preparation of documents/details for lenders and NHAI
• Meeting with Lenders and NHAI whenever required
• Assist company to get the NOC from Lenders & NHAI for transfer of Shares from SEL to STPL.
Outsourced CFO Role
• Finalisation of books of accounts of Company of FY 2016-17
• Finalisation of Audit of Company for the FY 2016-17
• Represent the accounts to the board of company and got their approval
• Team has also assisted company for Finalisation of Valuation Model of all road projects,
represents the same to auditors and management and got their approval
• Prepared documents for lenders & NHAI and represent the same in meetings
• Prepared the Budget of FY 2017-18 and submitted the same to Company
Impact Delivered
• Outsourced CFO deep-dived and resolved the open issues (it involved discussion with multiple
stakeholders and bringing best practice). Assisted Company to finalise the books
• Completely assisted STPL to prepare financial statements, annexures, etc. for submission to the
auditor
• Most of the accounts were dormant. Outsourced CFO found out the ways & means of
obtaining the required documents
• Successfully developed the financial models on priority, and successfully got the approval of
both client and auditor
• The IND-AS Financials were made error-free, to the satisfaction of all stakeholders. Also, MAT
liability has been saved based on the classification and valuation of INDAS
• Weekly update on Process of Share Transfer-NOC to Mona Polls*
Deal Summary
93
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Facts
19 – Case Studies: GBC Shipping Ltd *
Company Profile
GBC Shipping Ltd.*, the flagship company of GBC group was incorporated in the year 1985 as GBC Shipyard
Pvt. Ltd. with the main objects of carrying Shipbuilding and Ship Repair business. In a span of 15 years from
the year 1991, the company had achieved the status of the largest private sector shipbuilding yard in India
with satisfied customer base all around the world.
*Names masked for confidentiality.
Client Requirement
• Designed Cash control measures and reporting’s in the specific areas
• Compliance on Listing requirements with BSE and NSE
• Contribution to forensic audit
• Enforcing customs officials to stop auction during moratorium period
• Contribution to Interim Fund raising activities.
• Contribution to filing petitions with NCLT (National company law tribunal)
• Attending income tax cases relating to Transfer pricing, summons, scrutiny etc.
• Debt restructuring arrangement study
Outsourced CFO Role
• Meetings with HOD to give insight of IRP(Resolution Process)
• Arranging valuation report for three locations.
• Design SOP for control over assets, inventory and cash.
• Interaction with income tax, customs, bankers, Ministry of defense & Ministry of shipping.
• Design recovery strategy and pass claims of financial and operation creditors
• Supportive function for COC (creditors of committee meetings for lenders)
• Team management of 16 (including 3 qualified CA,1 CS, 1 Advocate ,1 IRS)
• Draft progress report and debt profile of financers
• Arranging IT support on SAP FICO module
Impact Delivered
• Going concern with 1/3 of the monthly Budgeted expenses consistently for 3 months
• Operational control of repairs and job work logically at site for ship repair. Study of Ministry of
shipping for subsidy and put up claim for recovery
• Finalization with Statutory auditors. Designed Internal control measures for payments to avoid
irregular and inconsistency in payments
• Generation of sources of revenue. Meeting with Ministry of Defense and other receivables.
Leading a team of recovery from receivables
• Tapping up with Insurers for quotes of various insurances policy’s and cost saving of about 65%
on the total insured value
• Supportive functions for FEMA, MCA, SEBI and other compliances
Deal Summary
Industry Ownership Management # of
Employees
ROI on
Fee Size Project
Duration
Marine Private Professional 150-300 3x Confidential 4 months
94
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of Employees Size Project
Duration
Mining &
Metals MNC Professional 5000-5500 $14-16 billion 1 year
Facts
20 – Case Studies: SSA Steel Ltd*
Company Profile
SSA Steel Ltd* is a fully integrated flat carbon steel manufacturer – from iron ore to ready-to-market
products – with a current capacity of 10 million tonnes per annum (MTPA), Its manufacturing facility
comprises ore beneficiation, pellet making, iron making, steel making, and downstream facilities including
cold rolling mill, galvanising, pre-coated facility, steel processing facility, extra wide plate mill and a pipe mill.
*Names masked for confidentiality.
Client Requirement
• Complete and successfully commission the entire project which was struck for 3 years on account
of various bottle-necks and amounted a interest cost to the tune of xxx Crores per annum to
the company.
• Stabilise the quality of the output which were marred by Internal technical inefficiencies, to start
exports
• Handle internal and external stakeholders to ensure smooth functioning
Outsourced CFO Role
• Environmental and forest clearances, boundary management issues, legal cases including in
National Green Tribunal, problem of water connection, hostility of locals, NGOs and media, public
relations
• Worked with essentially the company’s existing team to make things happen, with little
enforcement
• Leading the team from the front, motivating them through performance by example
• National Green Tribunal had stayed further construction of the plant, took initiative to find
out the real reason for the stay and sorted out all the grievances and ensured that the stay is
vacated
• Came up with innovative solutions to problems and worked with technical team to ensure
consistency and efficiency in quality, for meeting export specifications.
• Production bottlenecks were identified and streamlined ensuring safety of the ground staff.
• Identifying areas of support that the team needed and ensuring that they are made available
Impact Delivered
• Plant was Commissioned within one year
• A robust technical team with knowledge of all internal controls was created
• Streamlined the Quality output for Exports
• The cost of transportation of Ore was reduced to Rs xx per tonne from Rs xxxx per tonne giving
a robust boost in cost efficiencies by operational turnaround
• Plant functioning was harmonised and all possible bottlenecks eliminated
• All areas requiring support were identified and a full support structure was provided to team
Deal Summary
95
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of Employees Size Project
Duration
Hospitality Privately held,
PE backed Professional 100-250 $6-8 million 12 months
Facts
21 – Case Studies: SM Hotel*
Company Profile
SM Hotel* is a hotel asset company that specializes in development, acquisition and ownership of branded
hotels operating under well recognized brands such as Courtyard by Marriott, Hyatt Place, Fairfield by
Marriott, Four Points by Sheraton and Formula 1. The brand owned 25 hotels, 3900 Rooms across 12 cities
in India.
*Names masked for confidentiality.
Client Requirement
• The engagement was aimed at providing better governance, compliances and transparency in
the company’s operation
• Improvement in internal financial control framework through budgets and cost centers
• Automate processes through ERP implementation
• Take ownership of the treasury function -Evaluation and reporting of treasury function
• Provide effective dashboards and reports for the CEO to make informed decision.
Outsourced CFO Role
• Implemented best processes & comprehensive SOP documents
• Developed delegation of authority, Chart of Accounts, vendor master. Location master etc.
• Initiated various Automations & Customizations in ERP system for Accurate & timely financial &
management reporting
• Built operating Budget for 2015-16 to track Actuals vs. Budgeted
• Design and define the scope of internal auditor and support the company for better internal
control
• Implemented high quality comprehensive MIS with visual dashboard
Impact Delivered
• Implementation of Budgetary Control, On time Monthly Closing &financial reporting – Consolidate
& publish annual Financial Statements
• Business process Re- engineering, automation assisted in reducing time investment of Key
resources and management
• Investment of surplus funds in different financial instruments
• Successful implementation of Oracle ERP - Lowered manual dependencies for Analysis and
reporting.
• Positive EBITA post consolidation of the business – additional income of more than 300Mn
(investment of surplus funds)
• Assistance in taking business decision through robotics MIS, Dash Boards & BI tools
• Multi dimensional, different properties and pick and choose results from many combination
through robotics MIS, Dash Boards & BI tools
Deal Summary
96
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Industry Ownership Management # of Employees Size Project
Duration
Construction
and Interior
Decoration
Public
Listed Professional 400-500 $100-200
million 12 months
Facts
22 – Case Studies: Image Building Manufacturing*
Company Profile
Image Building Manufacturing Private Limited (IBMPL)* is is into the supply of Construction and Interior
Decoration materials manufacturing and sales which includes the responsibility to Market the Arts and
Sculptures of rural areas of country to be made available
*Names masked for confidentiality.
Client Requirement
• Assistance in Day to day operations causing business challenges, risks, and opportunities
• Acquisition strategy assistance, profitability improvement, outgrowing physical space
• Prioritization of growth opportunities from an operations perspective
• Capital budgeting in order to be commensurate with the growth projected in the business plans
to investors
• Assistance in finalizing locations by way of branch modelling exercise
Outsourced CFO Role
• Carry out Due-diligence of proposed targets in order to identify top 2 lucrative acquisitions
• Assist in investigating and analyzing investment opportunities
• Develop a Capital budgeting plan
• Assist in finalizing the new location for their site by taking into consideration various parameters
as informed by the client
• Create a financial model and do a ‘what-if’ analysis on the available location options
• Regularly track upcoming working capital needs
Impact Delivered
• Outsourced CFO assisted in analyzing acquisition opportunities, thereby saving 115 hours
• Negotiating value of acquisitions and thereby saving 35% of expected outflows
• Developed financial targets for the business and created financial models for the combined
businesses to analyze the businesses value post acquisition
• Developed Channel Strategy to assist in prioritizing growth opportunities
• Expanded their existing credit line by liasoning with the Banks
Deal Summary
97
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Notes
98
SOLUTION DRIVEN
APPROACH
STRATEGY EXECUTOR IN TIME SOLUTIONS
VIRTUAL
GLOBAL SERVICE
ACCURATE MIS
BUSINESS GROWN
DRIVER
VALUE MAXIMISATION
ON SITE/ OFF SITE
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament) Create Competence with Ethics
Achieve Governance through Innovation
Virtual
CFO SERVICES
Western India Regional Council of The Institute of Chartered Accountants of India
Notes