On what things CFOs are required to focus in order to reach financial analytics and reporting Success?
To support internal and external investors make informed decisions, financial reporting and analysis which offer precise and accurate financial information.
In addition to accounting, the company's CFO is expected to meet the obligation for ensuring stable and responsible financial management and also to ensure the efficient and productive use of capital and to retain the necessary skills, qualifications and professional standards.
Financial analysis and documentation are valuable for the evaluation of the financial plan, detailed analysis and also the preparation of financial reports. The quality of the business activities is evaluated by industry trends proportions, similarities, comments, etc.
What are the advantages of Financial Analytics and Reporting?
·Business performance of the company becomes transparent through its functions
- Market trends: There is a clear image of the trends that are prevailing in the market through analysis and reporting.
- For financial restructuring of the company, financial analytics and reportingis used.
- It forecasts the future growth and also helps in reducing the cost of goods and services offered by company.
What is the role of Chief Financial Officer (CFO) in Management Information System (MIS) and Board Reporting?
Management Information System emphasis on the information which relates to the organization and also on technology systems. To reduce the organization's problems, MIS analyzes the problems and prepares designs and maintains compute r applications. Moreover, board reporting is an effort to reduce the financial reporting process and providing themeaningful and timely financial information to directors.
Through preparation of detailed MIS reports both external and internal reporting is possible as it prepares complete checklist for senior management which defines the performance indicators Thus, it is consolidation and redesigning of financial reports, financial analysis report, investment report, budget report etc.
What is the role of CFO towards Investor relations?
It is the duty of the public company to provide, maintain and convey information to the public in each and every element of the affairs of the business, the leadership structure and the financial standing of the company. Investor relations is, in itself, a division devoted to the management of inquiries by customers and stakeholders including the potential investors involved in the portfolio or financial stability of the business. An active CFO with a broad range of experience may aid in the development of a wide range of investor relations programs, helping to establish a comprehensive relationship to financial analysts and other entities serving institutional investors. The CFO assists in the drafting of various investor presentations, publication of research and opinions on public companies that affect the investment community.
The operation of the CFO system includes stakeholders, such as the evaluation and execution of the MIS reporting framework. The company's finance team works to produce MIS reporting framework, MIS statements from their accounting software. The finance and accounting department shall have a proper training plan in this presentation of correct income, information and expertise. It also acts as a reference in educating shareholders on key areas to try the comfort of the auditors of the business.
What is the responsibility of CFO Support services in relation to investor?
Our CFO Support services in relation to investor is responsible for
- Identifying shareholder concerns and reminding the board of these problems.
- Setting up a regular schedule of events to meet potential buyers, conferences, etc. with the Company's shareholders (preferably on location).
- Keep track of the shareholder base (databases, external compliance's etc).
- Industry and business data analysis.
- Informing information about the company to the shareholders in a well-defined, open, accurate and effective manner.
Beyond reporting – developing the CFO role to create value in SMEs& Developing a sound Turnaround management?
Turnaround management is committed to the regeneration of the business. The duties of the CFO are to evaluate and prepare to save the struggling business and also to identify and fix the causes for failure to perform on the market. Therefore, if companies have problems in coping with cash flow issues, huge losses, etc., they need a finance specialist to comply with restructuring requirements. There is a summary of the processes included and a good understanding of the system should make it easier to recognize if implemented.
1. Turnaround management
The simple description of performance issues is established and illustrated. This reflects on the areas of financial stress within the business and the necessary steps need to be taken.
2. Strategy to be adopted in effective Turnaround management
Once the market is stable, it is time to begin the phase of strategic planning. The SWOT analysis shall also be carried out. It is necessary to look internally (strengths and weaknesses) but also to logistically analyze the external environment (opportunities and threats) as well. The long-term vision, mission and company objectives can be determined from the SWOT analysis. Understanding where the business is going enables a strategic plan to be created.
3. Action and implementation:
The next phase is to establish an action plan. The assignments are required to be carried out on regularly weekly and monthly basis, and each of them will contribute to the overall goal through this strategic planning process. All preparation can go to waste, without the execution step. It is essential that employees are associated with the overall vision of the business which can be obtained through the interaction and discussion of the company's CFO on a regular basis.
4. Review on Existence of turnaround management
Daily assessments shall be considered after the preparation and execution phase. Throughout general, the method of turnaround management is quite close to that of strategic planning, but there are some separate areas of stress Assistance of the turnaround management is necessary for the arrival of this stress.