Top 3 Reasons To Hire A CFO (Chief Financial Officer)

Why a CFO (Chief Financial Officer)? Usually, a bookkeeper is limited to data-entry as well as making trial balance financial statements while an accountant has the knowledge and skills to understand them. However, a Chief Financial Officer focuses on very complex financial analysis and reporting, creates financial tools and systems, provide financial advices, participating as a member of the strategic planning team and managing risk. Therefore, it is extremely vital to get it right, in term of both the person you select and timing. So, we have mentioned a checklist of signs that your company is ready to hire a CFO.

1. Tax Compliance:
   Generally, business growth means more employees / workers and a great number of transactions with suppliers that also means more tax compliance for Harmonized Sales Tax (HST) and source deductions for income taxes and Employment Insurance. Failure anyone to pass on amounts within agreed time limits or to file suitable returns can lead to interest costs, penalties as well as can increase the risk of an audit by the revenue authorities. Remember, the directors of your organization can be held personally and legally responsible if your company fails to pay certain taxes.

2. You Are Puzzled About Performance
If your accountant or financial manager just told you that you lost $10,000 last month. Next day, you checked your bank account and it had a balance of $30,000. If these indicators of your company performance clash, then it are the right time to hire CFO Services in Pune or to hire a CFO to put all of this information into context, analyze as well as summarize the financial position of your company in terms of the present, past and future. A chief financial officer, will understand all features of your business, and is one of the leaders in your company that smashes-down organizational silos as well as operates from a results-based point of view.

3. Managing Audits:
When your organization gets to a certain level of difficulty, several of your third-party relationships like bank need audited financial statements or report. A financial audit signifies that there will be better analysis of the financial aspects of the company at year-end. Part of the audit process is an evaluation of internal financial controls, for example. A chief financial officer can set up as well as check the accounting systems with internal controls to make sure your business is appropriately prepared when the auditors get there at year-end.

Remember, the bigger your company, the more intricate its financial needs are. Accordingly, when your business reaches a certain size, then it is the time to hire a CFO. If your company has 50 employees, you maybe need a CFO as certain legal and compliance rules begin to break down once you hit 50 employees. if you are looking best CFO Services in Pune or over the India Than Contact Sachin Gujar & Associates (SGA).