Category Archives: debt consolidation

Full Time CFO – Are You Looking To Hire CFOs And Senior Finance Professionals

Your company must have experienced sheer frustration and helplessness, upon mandating typical Talent Management firms, who are merely resume pushers and certainly exhibit little or no Talent in their Management vetting of Financial and Accounts Talent!! The last time you wanted to hire a CFO, didn’t they flood you with some Finance major resumes with a couple of years of experience? If they did not, just try them and see what happens! Fact of the matter is, no one can help you hire a full-time CFO without knowing your business intimately like SuperCFO endeavors to do.

Can you imagine a CFO or a Financial Controller looking at your data and giving you advice without knowing your business deeply? At SuperCFO, things are done differently and with complete diligence. The Company’s qualified and experienced team of financial experts a.k.a. CFO Partners and Business Managers expertly review candidates to ensure they possess the right skills for your requirement and it is this finance domain expertise that separates us from other headhunters. And we have a constantly growing network of mid to senior, capable Finance and Accounts professionals, who are well leveraged and looking out for the right opportunities to further their career growth.

To work with you to understand the right fit for the role and to get you the most appropriate CFO and Finance Controller candidates is our raison d’etre! This will allow you and your staff, to focus your efforts in the right areas, to facilitate successful achievement of targets with expert financial talent on your roles. Try SuperCFO, and be assured of the right solutions for your growing business.

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Special Purpose Shared CFO Solutions for CFO Support Services from SuperCFO

In the real business world, Financial Health Management is critical, and CFOs are hands-on professionals who love to roll-up their sleeves and lead the action. They like to get the work done.

Like many small and mid-sized businesses, do you also think of CFOs as know-it-all sages sitting on top of hills … guys who can only “advise” you when you have a financial problem?

Truth is, in the real business world, almost all CFOs are hands-on folks who love to lead the action; in other words they like to get their work done! So, whenever you have a business deal that needs a CFO to be handy, you should get one from SuperCFO! Be it an IPO or a Merger or Acquisition, or a Special Audit or any critical issue that needs an experienced financial brain.

For instance, putting together a detailed Financial Forecast model for raising Private Equity funds is not something which is a routine part of Financial Controller Services. SuperCFO proposes a unique solution which is an integral part of it armor of CFO Support Services; just hire a Shared CFO when you need to – for just the time and work you need. By the way, even if your existing CFO needs an extra hand, SuperCFO is just an arm’s length away!.

Check out Special Purpose CFO Services from SuperCFO, if you believe that a full-time hire isn’t needed! Read More

Interim CFO’s – Do You Have A Pressing Need For An Interim CFO? Go For SuperCFO’s Shared CFO services!

Has your fulltime CFO suddenly put in his papers or gone on a longish hiatus due to ill health? Has your Financial Health Management operations faced a sudden roadblock as a result of the CFO’s absence? One must acknowledge that CFOs are human after all and that they will one day be gone or fall terribly sick. The importance of CFO Support Services or Financial Controller Services, whether a fulltime CFO, Shared CFO, Interim CFO, Virtual CFO or Special Purpose CFO, in the overall scheme of things within a company cannot be undermined. If your company can be likened to a ship, then a CFO is its navigator responsible for dexterously maneuvering it through choppy seas, making sure that dangerous and mammoth glaciers are avoided. This can be done by taking some quick and bold decisions.

Basically, for any company, not having a CFO for even a short period of time, can spell disaster for the Financial Health Management of your business. For obvious reasons, hiring a fulltime CFO in a jiffy is a monumental task which is next to impossible. What do companies do to tide over a crisis of this nature?

But of course! Look to SuperCFO and their Interim CFO Services solution. With our tremendous domain expertise in CFO Support Services and Financial Controller Services, widespread network of Senior Finance Professionals CFOs, Finance Controllers et al) at our beck and call, and a super quick turn around on mandates, we have a vantage point position from where to serve your Interim CFO and requirements efficiently.

We bring you just the right kind of knowledge and experience your CFO should have and your company requires. All this without the hefty pay – packs or the standard 3 month waiting period for a fulltime hire.

So, while your search for a full-time CFO continues, don’t miss out on the value that a CFO adds to your company and hire an Interim CFO fromSuperCFO now!

Virtual CFO Solution From SuperCFO: The Most Cost Effective Shared CFO Solution For Startups And Growing Companies.

Companies at all stages of their evolution need a strategic financial brain to steer it clear from the stormy waters.  This is more so in the early stage companies. They crave for a sharp analytical mind to help them out in fund-raising, budgeting, financial reporting, cash flow management and ensuring compliance.
It has been observed that more than 40% early-stage businesses shut down due to financial in-discipline. Of course, only less than 20% startup founders believe that they can afford a full-time CFO in their organization. The truth is that the need for a strategic financial “brain” as part of your early-stage team is more imperative than ever. The CFO or Finance Head will ensure that the company keeps running full-steam and thereby help the CEO or the Promoter to focus on strategy to fuel the company to further growth, without being unsure – financially!
If you are a start – up or a small and growing company, hiring a Fulltime CFO would in most cases be cost prohibitive. How do you reconcile to this situation? There is an ever increasing need to make financially challenged companies aware about the growing phenomena of Virtual CFO or Shared CFO services where you can Hire a CFO, at a fraction of the cost that it would take to recruit a Fulltime CFO.
Worry not! SuperCFO has just the right solution for you in the form of a Virtual CFO or a Shared CFO.
Yes – A Virtual CFO. Someone who will never be a liability on your payroll, but always an asset for you and your company. The SuperCFO Virtual CFO’s involvement with your company is calibrated just to the right extent to ensure that there is no bleeding of unnecessary finances for your company. And what more……our Shared CFO brings great experience and skill to your existing Finance and Accounts team at a sharp cost; just when your company needs it the most. So go ahead and Hire a CFO from SuperCFO.

Evaluating Board Effectiveness

Board CommitteesThe Board should undertake a formal and rigorous annual evaluation of its own performance and that of its committees and individual directors. The Board should state in the Annual Report how performance evaluation of the Board, its committees and its individual directors has been conducted.

The following is an illustrative list of few questions one may consider to evaluate the effectiveness of the Board. The evaluation process should be strictly used constructively, as a mechanism to improve board effectiveness, maximize strengths and tackle weaknesses.

Evaluate Board Effectiveness

  • How well has the board performed against any performance objectives that have been set?
  • What has been the board’s contribution to the testing and development of strategy?
  • What has been the board’s contribution to ensuring robust and effective risk management?
  • Is the composition of the board and its committees appropriate, with the right mix of knowledge and skills to maximize performance in the light of future strategy?    Are inside and outside the board relationships working effectively?
  • How has the board responded to any problems or crises that have emerged and could or should these have been foreseen?
  • Are the matters specifically reserved for the board the right ones?
  • How well does the board communicate with the management team, company employees and others?   How effectively does it use mechanisms such as the AGM and the annual report?
  • Is the board as a whole up to date with latest developments in the regulatory environment and the market?
  • How effective are the board’s committees? [Specific questions on the performance of each committee should be included such as, for example, their role, their composition and their interaction with the board.

 

Tips for cost efficiency

Plug those leakages to achieve cost efficiency and savings.

tips-for-cost-efficiencyCost Savings is very important for enhancing Profitability and could be achieved by plugging various leakages in your cost structure while delivering significant results to your bottom-line, without having to implement any cost reduction measures.
Ask yourself below questions to know if you are monitoring your costs well:

1.   Rentals: Did you measure the office you took on rent?

Did you know thatYou could have negotiated good rate per sq. feet, but what if the landlord is charging you for more area than what the actual office space is?

2.  Manpower Cost: Do you evaluate various activities performed by your staff to check if there is any scope for improving efficiency, or eliminating unwanted tasks or automating mechanical processes?

Did you know that: By undertaking Time & Motion study, by evaluating in detail what each one does the whole day, by implementing certain productivity tools and/or by realigning job responsibilities, you could improve employee productivity multi-folds, thereby eliminating the need to hire more and containing manpower costs? Such measures also help in improving accuracy levels.

3. Cafeteria Services: Have you ever compared your guest/employee attendance vs. the plate count provided by your cafeteria services provider?

Did you know that: While you may have negotiated best per plate rate with your cafeteria services provider, you may be charged for unwanted extra plates?

4.   Internet Cost: Are you paying for internet for allowing free movie downloads to your employees during office hours?

Did you know that: With smart internet usage policy, where you could permit personal use of internet after office hours, you could free up a lot of internet traffic, thereby reducing internet bandwidth requirement and corresponding cost.

5.    Car Hire / Conveyance Cost: A lot of employee friendly companies provide door-to-door transportation services to their employees. Are you checking if the car hire company is taking the best route from “distance travelled” perspective OR is he charging you based on the longest route?

Did you know that: There have also been instances of employees producing fake/manipulated bills for car fuel / conveyance cost. Thorough cross checking, strong expense approval process and strict disciplinary action reduces this substantially.

6.   Business Development Costs: How do you know that the Restaurant/Entertainment bills that Business Head just produced are not for his family outing?

Did you know that: There could be leakages in costs and sometimes unwanted costs are incurred if Sales & Business Development teams are not monitored closely and vouchers not checked thoroughly? Companies have implemented simple control measures like asking for the restaurant bill and not just the credit card statement to check the number of guests entertained AND checking if those expenses were incurred on a working day or a holiday.

7.   Telephone Costs: Do you monitor long distance calls made by employees through the company phone number? Do you monitor roaming call costs?

Did you know that: By giving a Calling Card and by monitoring key long distance phone numbers, you could reduce your telephone cost substantially? This also reduces personal calls being charged to company account.

8.  Lawyers Bill: Do you ask for cost estimate from your lawyer, before asking him to work on any matter?

Did you know that: Most lawyers work on time & effort basis? They would charge you even for the telephone call you had with them explaining the matter on hand, as well as for correcting the mistakes made in the first draft document prepared by them. You may have negotiated hourly rates, but always ask them to stick within a budget and minutely review their time sheets to check what you are being billed for.

9.  Banking: Do you have a separate working capital (overdraft) account and a separate current account? Are you efficiently moving money across your various non-interest bearing current bank accounts to your interest bearing Working Capital (OD) account?

Did you know that: By setting-up auto sweep or other manual methods, and ensuring that funds from your current account are moved to your Overdraft (OD) account on daily basis, you could save a lot of interest cost in your OD account?

10. Interest Cost: Are you monitoring the interest rate charged by your bank on the loan you took from them some time back OR do you just pay whatever the bank charges you as interest?

Did you know that: You could miss out on interest cost savings just because your bank did not reduce the interest rate on your loan, while lending rates would have reduced?

Did you know that: If you have been servicing your loan well, and if you feel you are being charged higher interest rate, as compared to what another bank is offering, you could go back and renegotiate your interest rates with your bank? Remember, banks too need good clients.

Equity Restructuring

Here is an interesting restructuring process. Equity restructuring in its broadest sense may mean any transaction between the Company and its shareholders, such as issue of rights and bonus shares, issue of preference shares, IPOs, PE/VC funds, dividend on shares, stock split, spin-off, that affects any class of share holder or the share price. The issue of rights and bonus shares involves change in the capital structure either for cash or through capitalization of reserves in case of rights and bonus shares respectively. The right to equity dividend may get altered with the preference capital coming in where the preference shareholders will get priority over the equity shareholders with reference to payment of dividend and repayment of capital. Similarly share splits and spin offs radically restructure the capital base of the company and also may provide opportunity for holding shares in other companies.

One of the kinds of capital restructuring is capital reduction schemes made by certain companies in the past under section 100 of the Companies Act 1956. This interalia includes among other things setting off the carry forward losses that the companies may be carrying in the balance sheet against any share /stock premium or unused specific reserves in the balance sheet in order to present a correct picture of the net worth of the company. While the bankers may in any case be adopting this practice, it is for the shareholders to get a correct feel of the real financials companies in the past have resorted to this practice. Several companies have done this in the past. It is however a very involved process which includes certain court procedures.

Companies that have smaller debt compared to their net-worth are underleveraged or have a low gearing ratio. Such companies are either cash rich and have limited or no external debt needs for their operations. Such companies may also not have any major growth plans for which they will need the money. These are conservative corporates who are shy of borrowing for various fears of parting with their assets as security, or providing a berth on the Board for directorship for an external person or predominantly family run concerns. Such companies may adopt a strategy of buy back of shares. This means there will be fewer stockholders to satisfy and pay dividends to. Converse to the situation is where the company has profitable projects in the near future. There is thus an opportunity for raising debts by leveraging equity. There are certain debts like institutional debt with convertibility clause and issue of convertible debentures/preference shares that will affect the equity base of the companies.