Why should startups hire a CFO in Dubai?

When starting your own business, you often ask yourself the inevitable question of ‘where from and how much finance should I invest in my business?’. Especially in a market as competitive as Dubai, with so many established firms and countless sources to obtain finance from, business owners may be emotionally overwhelmed and fear to misguide their business investment hence fall into a miserable loss. However, this may not be the case if precautions are taken when handling money, and long run investment perspectives are established with precision. These extensive financial measures and decisions can be summarized under CFO Services. Start-up business particularly ought to receive CFO services in Dubai because:

1. They are new in the financial environment and may not have adequate knowledge to grasp onto the right opportunities
2. Start-ups have many other operations to focus on as they begin their business, hence the owners may neglect the financial procedures of the business which may lead to severe unexpected losses 
3. Their investment is larger, long-term and hard to reverse therefore the high risk should be mitigated by handling the business finance with intelligence
4. The probability of making a loss is higher for start-up business, hence they are more in need for strategies to achieve profitability

CFO (Chief Financial Officer), is an officer who is fundamentally responsible for the management and allocation of business finances in the most profitable manner. Businesses can hire a full time CFO, however more cost-effective options are to employ a part-time CFO or to outsource business CFO services to accounting firms as this will eliminate high salary expenses, resulting in more efficient time-management and worker productivity. Furthermore, receiving CFO services not only brings financial but also operational discipline to the firm. This is due to control of business operations established by the CFO to ensure the continued reliability of accounting systems leading to internal control procedures which include:

1. Separation of Duties
2. Accounting System Access Controls
3. Physical Audits of Assets
4. Standardized Financial Documentation
5. Daily or Weekly Trial Balances
6. Periodic Reconciliations in Accounting Systems
7. Approval Authority Requirements

CFO services include a wide range of tasks and responsibilities which are listed below:

Financial Planning

Financial Planning describes the most competent ways of using business finance and the appropriate areas to concentrate capital investment on. It involves determining the capital structure required to run the business efficiently and outlines the optimum course of action to undertake. It is done through a comprehensive evaluation of available financial variables that help to analyze the effect of various decisions on the financial state of the business.

Preparation of Financial Reports

Preparation of Financial Reports which keep the business appraised of where it stands financially. Financial Reports are significant for the company as they stimulate accurate decision making by summarizing the business costs, revenues, assets, liabilities and capital. These reports include: 

• Statement of profit and loss
• Statement of financial position
• Cash Flow statement

By preparing up-to-date and efficient financial reports, a business can oversee the use of its net profits, the net flow of cash and the arrangement of income and expenses in the business. This information will help the managers to make decisions that will reduce business costs, increase its revenues, purchase new business assets and make varying choices such as whether to continue or discontinue certain activities. Finally, competent decision making will empower market expansion and generate a higher market share.

CFO oversees the timeliness and accuracy of these reports which are essential to maintain systematic records of business operations. 

Manage Cash Flow in high quality

Cash Flow management is associated with solving issues of cash flow shortages or surplus in high quality. A CFO attempts to delay payment to creditors and obtain income faster from receivables to maintain healthy cash flow. Having a positive cash flow, will allow startups to avoid bank overdrafts and have enough cash to attain any cash discounts if available or grasp onto other beneficial opportunities. A CFO will enhance the working capital as well as free up any money tied up to inventory.

Strategic Planning 

Formulating short- and long-run financial strategies that reduce costs of the business, increase revenues and accommodate higher returns on investment. With an effective financial strategy, a startup business will be able to meet day-to-day expenses promptly without overtime charges for late payment. They will also be able to take advantage of economies of scale or bulk buying discounts and eventually offer lower prices in the market as they keep their costs low.

Budget Preparation and Monitoring

Budgeting involves forecasting short- and long-term costs, revenues and expenses to establish an operational roadmap for the business. Constructing a budget plan details the business’ projected financials and allows the business to plan for changes that may affect their business performance. Nevertheless, monitoring the outflow and inflow of finance in the business ensures financial discipline and healthy flow.

Other CFO Services also include:

• Provide all necessary advice and guidance to the business owners and managers
• Identify hidden business opportunities to facilitate the ground for the business to run at its full potential
• Introduce a network of financiers who would be willing to invest in the start-up and provide further capital
• Keeping the business informed about the financial market and financial laws
• Design and application of Financial Systems and technologies

CDA Accounting and Bookkeeping Services LLC

CDA is a group of profound professionals who are experienced with the Big 4 and other top accounting firms in Dubai. Our experts specialize in providing CFO services and have a long experience dealing with financial issues and operations. They are familiar with the best financial strategies and have worked with businesses from diverse industry backgrounds, therefore outsourcing your CFO services to our business guarantees you gratifying results as our team of professionals are more aware of the best deals in the market and can connect you with better financial networks.

CDA also delivers a wide range of business services that include CFO Services, Auditing Services, Accounting & Bookkeeping Services, Accounting Software services, Due Diligence Services and Tax filing Services.

Feel free to contact us. Our experts will give you one-hour Free Consultation to drive away your reservations!