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Showing posts from November, 2021

Automating Finance & Accounting Process via Robotic Process Automation (RPA)

November 25, 2021

Introduction to RPA Technology: RPA is a technology that enables a robot—the digital worker or a ‘bot’—to execute processes by emulating human interaction with computer applications through the User Interface. In 1959, Arthur Samuel developed Machine Learning (ML), which is one of the most important technologies that eventually led to the creation of RPA. ML allowed computers to perform several critical tasks, such as translation & text summarization, etc. RPA was first coined in the year 2000, however, the foundational technologies on which RPA was built have been around for decades. The foundational technology on which RPA is based are: Screen Scraping; Workflow Automation; Artificial Intelligence. The capability of RPA Technology: RPA has the ability to: Interact with other systems via Screen scraping or API Integration or OCI; Ability to determine actions based on inputs it gathered from other systems; Ability to Report. RPA in Finance & Accounting Process: Mckinsey ...

Chief Financial Officer Top Roles and Responsibilities

November 11, 2021

As the roles and Responsibilities of most other corporate positions have changed and evolved with the passage of time and the changing business environment, the role and responsibilities of the Chief Financial Officer have changed and evolved as well. Traditionally, the CFO was considered the ‘head bookkeeper’ of the organization, responsible for collating data, preparing reports, and submitting them to the CEO. However, that is no longer the case. The Chief Financial Officer is now valued almost as much as the Chief Executive Officer of a company. The Chief Financial Officer does a lot for the welfare of the company and plays a vital role in the value creation process of the company. Let us understand the emerging role of a CFO in the current environment and its contribution to the business. read more The Emerging Role of Chief Financial Officer Due to operational difficulties and equitable distribution of workload, the position of CEO was further divided into CFO and COO p...

How Virtual CFO Services Solve Financial Challenges For Small Scale Companies?

The journey of every small business in the first five years is generally saddled by effective funds management. Put simply, not enough money is seen coming in to pay employees or cover other expenses. The financial challenges of running a small business can quickly escalate and soon become the reason for closure. We list few of the financial challenges that businesses face and how to overcome them: 1. Cash Management Simply put, collect receivable in advance or on time and settle payables on longer credit terms gives enough room to manage funds. Usual tools include adherence to cash-to-cash conversion cycle, extend credit terms to customers, establishing clear payment terms, invoicing effectively, offering discounts for early payment are means to maximize liquidity. cash management 2. Budgeting Technique budgeting techniques Every business has their share of Fixed, Variable, One-time costs that must be captured on a budget. Develop and stick to a flexible budget. This will help management to plan for future, analyse expenditures and make changes when plans fall apart. The budget preparation and usage must be used as a live tool to run the business. 3. Funding For Capital Lack of capital can prevent a small business from hiring, expanding into additional markets and exploring new opportunities. Business expands on capital and most entrepreneurs, who have a better understanding of their business, are most likely to gets funds. There are many sources like Venture funding, Private equity, Bank loans, Friends and family who are keen to be part of the business expansion with low cost. funding for capital 4. Regulatory Compliance Regulatory complaince Business need to pay taxes and cost of compliance which are always on the rise. Management often are not aware of the risk of not paying correct taxes, taking proper expense deductions, input tax credit, overlooking payment on due date leading to penalties and interest are common areas that most companies encounter. Filing Tax Returns and generating correct reports on the advice of CFO or Tax consultant is a must to avoid these issues. 5. Top Talents After finances, having top talent is key to success. Hiring top talent require offering employees a supportive environment, a competitive salary, good benefits, and room for advancement to retain them for growth. Over the years, good team helps business to overcome challenges. top talents 6. Mix Personal And Business Finances personal business finances Mixing business and personal funds is a risky practice that makes it difficult to monitor cash flow and could ultimately damage business understanding. Start by opening a business account and use it to manage all company related inflows and outflows including founder’s salary, segregate business expense from personal and record business expenses to take tax deduction. 7. Paperwork And Automation Every business soon gets flooded with lot many transactions, data & information, paper work that often lead to time lost on mundane and repetitive task. The best way to handle this load is to take advantage of automation technology which can store and access data, improve communication, reduce the incidence of costly errors, and create flexibility. Technology simplifies financial management and lets you focus on running the business. paperwork-&-automation