03/06/2020 by MNV Associates
11 Most Popular Services Performed By Outsourced CFO in the UAE
There is a wide range of CFO services offered by accounting firms to companies on either part time or short time basisin the UAE. Read on to learn about the most popular outsourced CFO services in the country.
Here is a list of some of the most popular outsourced CFOs services in the UAE:
1. Financial Strategies
A higher degree of financial management is the biggest strength a CFO can bring to the organization. Whereas most other finance positions in your company include holding past and current financial records, a CFO focuses on the organization 's comprehensive short- and long-term plan. An outsourced CFO is a specialist in long-term planning and finding out just what is needed to take your business from where you want to be now.
2. Short- And Long-Term Assessment
A financial prediction is one of the organization’s most valuable techniques. It's the detailed financial and operational blueprint that provides a step-by - step guide to take you from where you want to reach your objectives right now. A study, strategy and practicality are required for a financial forecast. It needs strategic understanding of your company's current and future strengths, knowledge of financial analytics and patterns, and a comprehensive study of the competitive environment within your corporation.
3. Technique & Layout Of The Financial Structures
It may be time to re-evaluate if your financial management software and internal systems are unable to keep up with your development, are incompatible with your other operating and/or sales systems and processes or lack capabilities important to your business. While outsourced CFOs typically do not implement the actual system, they can help in assessing your existing system, assess your long - term needs, design a combination of systems that will work best for the current and future growth of your establishment.
Assist in selecting and negotiating with a provider, help ensure that the transition runs as smoothly as possible and help train staff on new systems to maximize insight, comfort and use.
Although a forecast is usually a 5- or 10-year cost and expenses estimate, a budget maps out the projected financial information in detail. While this is a relatively short time period than the strategic prediction, a budget is essential to an organization's day-to-day activities. This budget helps direct the financial decisions of the year, while keeping the company on track to achieve its objectives. A proactive CFO in the UAE will also use a forecast as a rolling budget to help assure your financial performance is consistent with the priorities and strategy of the business.
5. Make Financial Statements Simpler And More Interpretable
Finance is important for an organization's day-to-day activities and financial reports keep you aware of your present (and future) rankings. Many outsourced CFO services in the UAE include facilitation, interpretation, and drill-down of financial reports. Let a CFO review your reports in a way that better suits your business needs and send you the most significant takeaways. This gives you the ability to ask questions, re-strategize as appropriate, keep informed about what is going on and have the details you need to make your business decisions.
Capital raising is usually very difficult for a company, but an outsourced CFO may provide resources to help the process go smoother. An outsourced CFO typically brings a network of financiers with him or her that they will introduce you to.
An outsourced CFO would likewise:
· Make sure that your current accounting and financial statements are important when it comes to positive discussions with potential investors or lenders
· Include financial statements, analyses and due diligence records
· Assist in the organizing of resources including how much funding you need and which combination of debt and equity financing is appropriate for your objectives
· Carry your company with trust , credibility and integrity, by having an accomplished CFO representing you and your corporation.
· Review and negotiation timesheets
7. Capital Structure
What more capital do you need, and what combination of debt and equity can help you sustain the profitability of your business while attaining the growth you want? An outsourced CFO facilitates expertise in order to help you decide which capital structure is suitable for your company.
8. Provisional CFO Services
While your business is in development, facing a situation, or is in the process of hiring a full-time in-house CFO, and in the meantime provisional CFO may better facilitate your operation. Many firms also hire an outsourced CFO for an interim position which precedes the need for a full-time CFO. In these situations, an outsourced CFO would not only be able to provide as-needed CFO strategy and services as your business expands but will also help recruit and guide a full-time CFO for your business.
9. Study Of Cash Flow & Restructuring
Cash flow is among the most growing (and influential) problems many businesses face. Solving cash flow problems means more than just getting in more revenue — it includes understanding what you're spending and where you're spending it, and knowing which expenditures are important to the growth of the company and which can be cut loose or changed. Outsourced CFOs are plunging deep into their budgets to find out how to boost the profitability. This includes:
· Renegotiating contracts with vendors
· Customer contract management
· Ensuring that rates are consistent with business & consumer patterns
· Analyze systems of commissions
· Managing the supply chain
· Assigning costs to revenue
Outsourced CFOs can generally make more proactive cost cuts (and better) than an in-house team, making it as one of the highly regarded outsourced CFO services. The reason an outsourced CFO can be more effective is that:
· They will have extensive exposure to a variety of organizations in the same industry so they can analyze your expenditures with a deep understanding of benchmarks.
· They are more ambitions. Where managers or teams may have a stronger interest in particular projects or programs that may affect their cost-cutting strategy, outsourced CFOs do not have these prejudices and make decisions based on evidence and experience.
· Cost reductions are expected to be more rational. Cost-cutting is not a simple game of "large numbers are poor and small numbers are good." There is a need for careful evaluation, data analysis and objectivity to achieve cost saving that is achievable and supports client priorities as opposed to undermining them.
11. Make Mergers & Acquisitions Simpler
Whether a merger, acquisition or partial, public, entity or asset sale is included in your deal, helpful CFO outsourcing services usually includes:
· Preliminary monitoring and review
· Ramping up financial roles
· Advise main team leaders about the selling process
· Preparing appropriate documentation
How Can We Help?
Would you like to schedule a free consultation about financial forecasting with one of the best accounting firms in Dubai? Reach out and one of our experts will be happy to answer any questions you may have.
MNV Associates are specialist accounting firms in Dubai who have years of experience working with local and international businesses, helping them to outsource key elements of their business such as Accounting & Bookkeeping, Tax, VAT, CFO Services, Audit & Assurance to improve effectiveness and save costs.