CFO Service

A start-up company, launched by a young technocrat engaged in providing SaaS to overseas clients.

Strength of the Client

A Technocrat, have expertise in a niche IT field. Excellent at client and business development. Have substantially developed the business.

Challenges

• A robust accounting system was missing

• No reconciliation with respect to expenditure and revenues

• Swelling Suspense account

• The owner has huge ambitions to grow the business but was not confident enough to know, if his business was generating enough cash to be able to reinvest in aggressive growth plan.

Spanyan Business Assistance

A. Streamlining Accounting Practices

• Appoint a good in-house accountant

• Formulated Chart of Account, Flow of revenue and expense posting and grouping of expenses as per the norm of the industry

• Formulated and introduced formal accounting policy right from establishing the authority to incur expense, to executing expenditure and posting it into the Accounting software

• Introduced monthly account closing check list

• Established foreign currency payment inward receipt SOP and accounting

• Established robust follow-up mechanism with various associates (mainly Customers, bankers)

• Established compliance calendar and its review mechanism

B. Establish Management Information System

• Established formal Budgeting and Business Planning process, with classification of source of Revenue and Expenses

• Establish measurement of Actual and forecasted Profit and Cash flow

• Initiated Monthly Review meeting including review of Account receivables, Account payables, reconciliation of various statements

• As per need, interacted and communicated on behalf of client - with Client’s customers for discussing critical business matters

• Chalked out model for further outsourcing of services Vs providing services from inhouse resources

C. Establish Management Information System

• Provided guidance and contacts for various professional agencies like specific or tailor -made Insurance needs, labour law consultants, recruitment agencies , reference check experts, trade mark registration attorney legal team specialising in Software / Saas field and related issues.

Outcome

• More clarity on decision making

• Better follow up of Account receivables and hence improved cashflow

• Better statutory compliances

• Improved confidence in perusing aggressive growth strategy with very clear picture of profitability and future cashflow projections

Ultimately value creation helped client to strike larger collaborative deal successfully