CFO for Your Start-ups

Accounting & Bookkeeping,Financial Services,UAE VAT

Why Should You Hire A CFO For Your Start-ups Is Crucial To Your Business?

In this cutting edge of time versus success, a business has many responsibilities to be taken care of. This becomes a little hectic when it is the peak time for the business to push through its peaks. In this hustle, it becomes tedious for one to meet internal expectations like building the brand, onboarding the right talent while ensuring stability. Amongst this chaos, one thing that cannot be ignored and undermined is the attention to be given to financial operations.

This chaos only twists further when your Startup picks up the pace and begins crawling up the growth curve. At that momentum, your finances require constant positioning and an experienced eye behind it all. You might think that everything else needs to be taken care of primitively, but your reservoir is based on the finances alone. This means that everything can be dealt with except for the finances.

The trending culture in the business ecosystem around the world is now revolving around the concept of outsourcing and has increased the selectivity for specific positions in a firm. One of these vital positions is a Chief Financial Officer (CFO). This position or a job profile brings an immense sense of responsibility towards the finance corner of the business along with a huge requirement of knowledge and experience in handling the core aspect of a company. Statistics and advice of industry experts say that having a CFO pushes the growth pace of a business by 20-25% annually.

To deal with your financial capabilities for the business, you need to have a plan. The plan is the strategies that are calculated and structured as per the results of your business. These strategies involve factors like investments, aligned decision-making, evaluation of the spending and returns, and much more.

At an early stage of business, it is almost impossible to bring the cost and the value of a CFO into your bracket. When you compare the price at which an experienced CFO can be afforded against the numbers that are to rise once the CFO acts on your business strategies about your finance cubicle, you will notice that investing that amount in a CFO is much more convenient than pacing out on the growth of your business. This can be relatively put together through Maslow’s need theory. Thinking about your survival concerning your spending on a CFO is not a rational way to judge your businesses near future.

cfo for your start-ups

The below-given reasons contribute to the logic behind this decision-making:


  1. Strategic planning and execution for finances:
    A CFO is supposed to grasp the need of the hour as per the management and crunch a business plan which can be broken down concerning long term, short term, and midterm respectively. Given the scenario and the circumstance of your business, there will be changes on an everyday basis. The plan that a CFO is to make, should be compatible with these changes. This means that the CFO is required to know and forecast these situations and keep the implementation work-ready. This preparation majorly involves profit and loss statements, cash flows, and expenditures.

    A general plan made by a CFO would have these factors:
    • Price modules of the product.
    • The requirement of investments.
    • The budgeting for all the aspects of the business.
    • The income and the expenses for all projects.
    • The funding policies from the savings.

  2. Accurate Report work in time:
    Finances work best on the records and the exact track of every detail on the transactions of the business. In the process of maintaining these records without any mistake or anything missing, one must also know that reporting these tracks is equally vital. The financial reports are the only way the authorities can understand the accurate status of the business which impacts their decision making. The more precise a report is, the more precise will the next decision for the business will be, the more precise the results will be gained.

  3. Working on the Statutory compliances:
    When running a business, there are some mandatory rules and regulations to follow. They are called statutory compliances like GST, IT (Income Tax) and company law, and so on. These factors also demand to be catered to and kept consistent with other activities in a business. As these become a part of the financial foundations, a CFO is bound to know about them as well as know ways to keep them on the radar. When it is about the government involved in the schemes to encourage the business, a CFO can sense the benefits and advice the management about their next decision.

  4. Risk evaluation and management:
    Money matters don’t go without the potential risks or problems in a business. Risk is about knowing what can go wrong or not contribute to the growth of the business. A CFO is expected to keep an eye on these types of risks which they can easily do by prioritizing the possible problems that can occur, evaluating and identifying along with the application of these risks that create the stops in the movement. The CFO is capable of learning about these risks happening internally and externally to keep track and make sure they don’t happen ahead.

  5. Matching shoulders with the Stakeholders:
    The demigods of a business are partially the stakeholders, that fuel the necessary funds for the organization to keep running. It is a tedious task for the management to decipher the financial updates and break them down to the stakeholders every now and then. A CFO, however, can manage these relations very diligently. It becomes his responsibility to keep the stakeholders updated with reports that help them know how their money is being used in the organization.
CFO For Your Start-ups

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