As the world order of business and corporate dealings changes so does the traditional book-keeping function of the Chief Financial Officer. In fact, if they have their heads stuck in the books, they are bereft of at least 70% of their functional duties. In 2011, Deloitte came up with the concept of “The Four Faces of CFO” theorizing that CFOs typically fit into four categories:
1. Responder – the one who supports company strategy development by helping business leaders to quantitatively analyze financial implications of different strategy choices
2. Challenger – the one who examines the risks to and expected returns on different strategy alternatives. This CFO seeks to minimize risks, hence it is trained to look at the glass half empty and is inclined to say “no” a lot more to risky innovation.
3. Architect – the one who shapes strategy choices and applies finance strategies to complement and maximize the value of the strategy. So, in essence, they find a way to make the strategy successful in financial terms.
4. Transformer – the one who becomes a lead partner to the CEO in molding and implementing future business strategies. This CFO addresses core questions around shifting product-market mix, delivering value and creating distinctive capabilities to provide the best operational and financial options.
In all honesty, while most CFOs fit into the Transformer category, in practical life, the role changes according to the changing needs of the business and the working style of the CEO. And this is what got me thinking. Are there set categories that we can fit the CFO role into. Although my first instinct was to say that the modern CFO will inevitably move between styles depending on the needs of the organization, on talking with my peers, I realized that there are two faces to the CFOs:
Mediator of Change
Once the C-Suite has decided a direction for a big change or a strategic direction, the CFOs then use their financial skills to make it viable and utilize the resources to operationalize it.
Being the Realist
While there is no growth or change without a certain level of risk, the CFO plays the role of the devil’s advocate to make sure that the risks are minimized and mitigation measures are put in place to reduce the financial losses that could occur in case the strategy went South.
Thursday, February 6, 2020
Monday, February 3, 2020
Why outsourcing of accounting and tax services are important for small business?
Outsourced accounting services in the world of business are becoming more important and a necessity for the survival of any business. Accounting firms not only prepare a proper track record of finances but save you a lot of time and money.
Accounting services play a crucial role in both small and large businesses. Generally, small-scale business owners believe that it’s not that necessary hiring an accounting team in the beginning but it’s worth the investment to employ an accounting firm from the beginning. Because even a small business holder needs to stay attentive about so many things like cash flow, tax payment deadlines, etc. If you are a small business holder then you must want to know if what services can be availed from an accountant to manage the finances.
An accountant can provide several services to help you manage the financial information of a small-scale business. Most of the popular services provided by accounting services can include tax preparation services, financial statement preparation, bank reconciliation, and payroll processing among others. But as a small business holder, you may need two basic services including accounting and tax services.
Every business holder wants to get quality services on fewer expenses especially when it’s a small-scale business. So, it’s important to act smartly while choosing low-budget strategies to make your business successful.
Now, the question is which is the best option to go for? Let’s find the answer together. Hiring a trained accountant or outsourcing the services is never costly. Because when you outsource both tax and accounting services from an accounting firm or a professional accountant, the expenses will automatically be reduced. And you will get high-quality accounting and tax services for your business.
An accounting firm or professional accountant will estimate required days or weeks to complete the transaction recording and will charge you according to the time they have given for your organization. That’s how you may get high-quality services at a low cost.
Accounting records play an important role in the preparation of accurate and fair presentation of the financial statement of your organization. A strong financial statement plays a crucial role to attract the right investors to invest in your organization. The regulatory authority also imposes the taxes on the basis of your financial statement.
When it comes to tax preparation, so many outsourced accounting teams provide tax services to small businesses which are so important to pay taxes accurately and on time. The accounting team will analyze your tax liability and prepare a strategy to minimize how much you pay. Then they’ll file annual tax returns to keep your business manageable.
Remember, another plus point of hiring an individual professional accountant or accounting firm is that they have so many common clients like your business where they are providing the same services. So, they may provide you the best possible quality services at a low cost.
Every businessman’s goal is to grow a small business into a large business. So, to meet your goals, you must follow such strategies that may help you grow your business to the next level.
Accounting services play a crucial role in both small and large businesses. Generally, small-scale business owners believe that it’s not that necessary hiring an accounting team in the beginning but it’s worth the investment to employ an accounting firm from the beginning. Because even a small business holder needs to stay attentive about so many things like cash flow, tax payment deadlines, etc. If you are a small business holder then you must want to know if what services can be availed from an accountant to manage the finances.
An accountant can provide several services to help you manage the financial information of a small-scale business. Most of the popular services provided by accounting services can include tax preparation services, financial statement preparation, bank reconciliation, and payroll processing among others. But as a small business holder, you may need two basic services including accounting and tax services.
Every business holder wants to get quality services on fewer expenses especially when it’s a small-scale business. So, it’s important to act smartly while choosing low-budget strategies to make your business successful.
Now, the question is which is the best option to go for? Let’s find the answer together. Hiring a trained accountant or outsourcing the services is never costly. Because when you outsource both tax and accounting services from an accounting firm or a professional accountant, the expenses will automatically be reduced. And you will get high-quality accounting and tax services for your business.
An accounting firm or professional accountant will estimate required days or weeks to complete the transaction recording and will charge you according to the time they have given for your organization. That’s how you may get high-quality services at a low cost.
Accounting records play an important role in the preparation of accurate and fair presentation of the financial statement of your organization. A strong financial statement plays a crucial role to attract the right investors to invest in your organization. The regulatory authority also imposes the taxes on the basis of your financial statement.
When it comes to tax preparation, so many outsourced accounting teams provide tax services to small businesses which are so important to pay taxes accurately and on time. The accounting team will analyze your tax liability and prepare a strategy to minimize how much you pay. Then they’ll file annual tax returns to keep your business manageable.
Remember, another plus point of hiring an individual professional accountant or accounting firm is that they have so many common clients like your business where they are providing the same services. So, they may provide you the best possible quality services at a low cost.
Every businessman’s goal is to grow a small business into a large business. So, to meet your goals, you must follow such strategies that may help you grow your business to the next level.
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