Managing Working Capital for a New Age Business

One of the key struggles for any startup business is to manage their working capital. Working capital denotes all receivables/ assets which would convert into cash within a year (“current assets”) net of all liabilities/ payables which are to be settled in the same period (“current liabilities”).

Know Your Market

Every time we visit SME : They ask - Do you have CFO with similar industry domain ? I wonder as to how this is relevant for the simple reason that SME business owner knows his business and what he actually need is CFO who understand what is happening in CFO' market. Now, what is CFO' market ? Here is brief :

Here are five things to avoid while evaluating an acquisition target based on the experience of those who have learned the hard way to do it right:

First 100 days for CFO Engagement :

Review the Corporate Strategy: This should be done with the CEO and Board Chair. Look for completeness, consistency, communication and evidence that all parts of the strategy (or business plan) are being implemented.

GST is Collaborative Sales Target (CST ) for Business Growth & Sustainability – Why ? Here are Five Pointers :

GST was formulated with an objective to address integration of Goods ( Agriculture, Industrial ) and Services ( Traditional, Emerging ) with Business Channel like Brick & Mortrar ( Large Stores, Small Stores ) and Online ( Media, Internet ) & Consumption habits across cultural diversities in India.

CFO : Role Expectation & Alignment to SME businesses with orderly navigation to growth & profitability

The role of a CFO within a company will depend on several factors, including the CEO and/or board of directors’ expectations, the industry, corporate strategy and business aspirations. A company’s size will also have a significant influence on the CFO’s role; however, below are some general responsibilities that every business, regardless of their size, should be able expect from their CFO.

GST : Finance & Technology Transformation for orderly compliance with operating & strategic level business management : A CFO Perspective

GST impact on the concept of origin-based taxation vs. destination-based taxation and its potential ambit where many tax categories come under a uniform, intended-to-be-simple and single taxable event ‘supply’ (that can wipe away a series of multiple taxable events) is indeed tremendous.

How a CFO can save Millions (Recurring) -Forex

It is one area a CFO would say… we don’t control it…though we can hedge; Even for unhedged companies, the forex is more natural. It varies for so many reasons, one can though only correlate with the event of the past; always an analyst’s articulation.

Politicans act of Demonetisation & Professionals step in to Remonetisation : Emerging Professionals Class for superior governance in digital time

Both Nandan Nilekani & Raghuram Rajan were neither a politician or bureaucrat but what they did for country in terms of their vision & imagination is something extraordinary.

Accountant's New Mantra : Cash(less) is King ! Hire ( Cashless) Finance Officer !! Make Business King Size !!!

Raising the bar on our Political system at Top : Save next bunch of INR 500/2000 !‏

At the outset, I must congratulate you with current action on Rs.500/Rs.1000 notes with underlying objective to tackle black money, illegal funding and terrorism counter attack.

Creating A Value-Adding Finance Function

As the demand on CFOs to provide real-time analytical insights, support senior management decision-making and become valuable strategic business partners continue to increase, a strategic transformation of the finance function is necessary. Depending on whom you converse with, some finance professionals prefer to use the term finance transformation whereas others do not.

3 Airlines Landing : Crash ( Kingfisher) - Turbulence ( Spicejet) - Safe ( Indigo) : BE GROUNDED in financials management across Indian Airspace

It all started in the year 2005 and 2006, at the time when our economy also started flying high as well with GDP touching 8-9% and we had three Airlines took the wings in Indian Market.

India 2014-2019 : Business & Finance passing through an early stage Crisis or Transformation ? Linkedin Post : IxCFO

Our Prime Minister had assessed the situation with leaders of business & finance on current state of Indian Economy. Here are some of the very recent 5 views captured by us from our Leading Business & Finance Luminaries ( All the quotes are recent July-Aug 2015 from Indians across the globe )

Leveraging balance sheet optimisation, heat generating debate in board room - Is there such thing called Perfect Balance CFO ?

The requirements of a modern Controllership/CFO function are as wide as they are deep with specific reference to SME world. Constrained by financial governance, limited by ageing technology, swamped by demands to broaden their financial stewardship into business partnering,

The role of the CFO in a startup

The appointment of the first chief financial officer (CFO) into a startup team is often a difficult process for founders, they envisage that they will stifle innovation and risk taking, and put a constraint on risk taking.

Finance & Accounts Outsourcing ( FAO) = Art of Optimising Cost of Finance Function with efficient Closing process, Data integrity & Report Clarity

To have Finance function playing role as "NAVIGATOR" to business, it is important to understand four C's which plays very important role - Controls, Closing, Cash Flow & Compliance. It is in this context that there is growing trend to have Finance & Accounts Outsourcing ( FAO ) as very important pillar to draw maximum out of core of finance function.

Follow LYE ( not LIE ): Emulate Bharat Ratna Prospects - Ratan Tata & NRN Murthy on Republic Day : Celebrating Reforms 1991-2016 ( 25 Yrs)]

In the current business world, going by certain speed, hype and Vitamin-M ( Money overdose ), it is important that businesses follow certain base level check in the form of LYE - LEARNING , YEARNING AND EARNING and it is equally important for new age start-ups to have businesses on solid ground to take off with LYE

Robust Management Accounting Framework & Improving Strategic Decision Support Systems for sustainable growth & scale-up

Management accounting “is at the heart of quality decision making, because it brings to the fore the most relevant information and analysis to generate and preserve value,” stated in a document recently prepared by the American Institute of Certified Public Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA).

An Entrepreneurship @ 40+ .. doing Portable MBA with learn,unlearn and relearn : ixCFO celebrates 5th Anniversary : CFO Services with a difference !

When you complete 5 years in a job, you are entitle for Gratuity ( Statutory Loyalty Rewards in India under Labour law ) ! Having taken up the job of building something and asking for the entitlement of that Gratuity from your own baby has many learning forms, probably, which otherwise would not have been possible to get.

Why A Startup Should Make Governance A Priority?

When an entrepreneur starts a business he wants to ensure what he is doing is worthwhile. This means his management style has to be fair and transparent and it should stay within the limits of the applicable law. What is governance? It means the board, of a company, steps in to guide and monitor goals and values through policies and processes that are best suited for its business.

Scaling Business : Developing Customised Talent for Business Growth

vital in order to check attrition & bring stability across HR. CFO's can address their role around following : Assembling and retaining a staff for flexible talent mix ( for example outsourcing V in-house strategy ) keeping in mind business growth across ...............

Raising Growth Capital : CFO’s role Integrating Valuation & Dilution

Venture Capital/Private Equity is needed to boost business growth either organically or inorganically. Raising capital is a long process, coupled with structuring around right controls, having need to set the valuation & dilution norms for investor & management.
Smart VC/PE fund Investor will always keep in mind adequate incentivisation in favour of.......

Celebrating Chartered Accountants' ( CA ) Day

Today is July 1 and every year we celebrate this day as Chartered Accountants' Day. Majority of our friends in industry occupying position of CFO's are members of Institute of Chartered Accountants of India ( ICAI ). It is, therefore, imperative that we celebrate this day, which belongs to our CFO, nomatter wherever CFO is and by whatever designation CFO is being given to perform that role.

Smart CFO = Leveraging balance sheet optimally & saving financial cost

Based on our rich experience as CFO/Financial Controller, Team of our CFO Partners on our IxCFO platform has listed down following tips to save on borrowing cost If your have Imports : Always use buyer's credit @ Libor + 1.5% i.e. approx 2% ( If not exports, go for hedging also) If you have exports : Use PCFC/ FBN / FBP / FCNR(B) facilities. ( Even SME ‘s can take sub-limit with cc limit)

Scaling Growth with IxCFO : CFO Services to sideline disruptor

Score Keeping = How to make robust periodical closing Hygienic Accounting = How to address accounting norms

Driving Internet Economy : CFO's new financial supply chain

We are now witnessing online boom across sectors and having learned the art of clicking gadgets via Facebook, whatsapp for free, we are now getting into another round of shopping experience - practically everything via internet...

Developing sound financial MSME eco-system : RBI-CAFRAL Paper

We had an opportunity to interact with MSME eco-system participants consisting of bankers, NBFC's, VC's, & Financial Intermediaries at Mumbai on 16th March 2015...

Budget 2015 : Track your Pancha Tatva ( Five Elements ) to Consolidate Capital

Generally, for an individual, we have five important source of capital building out of our saving...

Scaling start-ups in Business & Politics – Story of an Aam Aadmi!

Delhi verdict has given all of us an opportunity to sit and figure out what it mean to world of start-ups – In Business and In Political system of India ( Bharat )..

CFO : Running a tight finance shop

CFO's number crunching ability as an analyst need to be in sync with its strong ability to close finance books on time, accuracy with efficient controls on reporting within timeline to all stakeholders..

CFO : Analytics driven business navigation

Business & financial data where the first ownership lies with CFO in many ways. Many times, business owners call in distress in resolving complex decision making process while addressing business transformation, operations need to address leakages/efficiency, sales..

Valuing early stage venture

With the growing inflow to early stage ventures, it is important to understand the drivers of valuation process from CFO's perspective.Well documented business plan covering all significant levers of business with appropriate assumptions in line with economy..