PRATIQUE (PCFO) is your virtual partner by handholding right from starting of your business and throughout the growing stages and beyond. PCFO provides all the operational support required to keep your books of accounts in up to date condition for Audit and other Compliance requirements. PCFO can provide the CFO services from remote thereby reducing your cost of hiring a fulltime CFO to fraction of the cost. PCFO can also provide Transaction support, Recruitment and Training support, help you in Financial planning, Accounting Health check services, etc.
Hiring an in-house accountant may be a tedious and costly affair. Get this work out-sourced to PCFO and our team can provide the best support for all your needs with respect to maintaining books of accounts and preparing reports as required by various stake holders of the organization. We assure that the books will be maintained up to date at any point in time. Due diligence will be taken in record keeping and accounting in system.
The entries posted from Bank to books are often not correctly recorded with adequate narration and supporting reference documents. With PCFO support in place, you can be rest assured that all the Bank accounts will be reconciled and books are updated on daily basis. This process would ensure the books are crystal clear and the reports would be based out of the correctly accounted transactions.
PCFO team would ensure the books are updated correctly and the month end closing process is completed within 5 days and all the Management Reports with detailed analysis are made available for review on or before 7th of every month. On top of the monthly reports, the management would also be provided with the Daily Flash Reports which would include all the important highlights of the previous day’s transactions – Sales, Purchase, Compliance, Fund Status, etc.
PCFO team will help in analysing and reporting the actuals against the budgets. This variance analysis will help the management in taking timely corrective actions, well before the end of the year, thus ensuring achievement of targets.
The Breakeven Analysis would help the management to take decision regarding what and how much needs to be sold to ensure that the costs are covered. The analysis would also help to know at what point of sales the company can start generating profits. PCFO team would support the management to take such important decisions with the necessary analysis.
Audit period is always considered to be an additional job from the routines when your staff needs to cater to the data requirements of the auditors. The accuracy of the data is also very important apart from the knowledge of various regulations & compliances applicable. Any delay in completing the audit will incur additional cost. PCFO team can provide support in these matters and relieve you to attend to your day to day operations. PCFO team will ensure that the Audit is closed smoothly by keeping books the updated and accurate.
One of the shortcomings of any delay in collection is on account of differences in the accounts of the company and the customer. Regular reconciliation and confirmation of the accounts ensures there are no differences in the balances claimed by both the parties and would result in effective follow-up for recovery of dues on time and positive cash flow for the company. It is also observed that many a times the Debit notes and Credit notes are not issued and accounted on time by either of the party and would delay the process of payment. These would be known if the accounts are reconciled on regular basis. PCFO team can support with all the above and relieve the management to concentrate on sales and profit maximization.
The vendor may issue legal notices for non-payment or may sometimes stop supply of material or services bringing the operations of the company to a halt. This may be on account of the vendor account not being updated and reconciled on timely basis. PCFO team would ensure that the vendor accounts are updated on timely basis with the help of maintenance of the Purchase Order Register / Service Order Register, ensure the vendor master forms are updated correctly, Goods Receipt notes are duly certified by the QC Team, Bills are as per the Purchase order, the bills are duly authorized by the officials as per the Authority matrix and the bills are accounted correctly in the books. The due dates of payment should be captured in the books based on the Purchase order terms. The payments are made on time depending on the cash availability and the cash forecasts. These procedures would ensure that the issues with vendors are resolved and the vendors are managed perfectly.
Regular scrutiny of the general ledgers in books would ensure the books reflect the correct balances and the reports are right. The benefits would be trust enhancement by the stakeholders – Shareholders, Bankers, etc. PCFO Team with its support would ensure the books are accurate with the necessary scrutiny and Reconciliation.
PCFO Team can facilitate with the necessary contacts for bill discounting arrangement so that the company can avail short term finances at competitive rates. The waiting period of collection from the customer is reduced. This option would be more flexible than short term loans, overdrafts or term loans.
Virtual CFO services are suitable for small & medium size businesses who may not be able to afford the services of a full time CFO. VCFO’s can be hired on part-time / interim / full time / specific assignment basis. A VCFO is an affordable alternative to hiring a full-time employee and get access to experienced financial professional at a fraction of the cost of a full-time CFO, yet avail all the services that are usually provided by a full-time CFO. The VCFO function is usually customized based on the client requirement and varies from basic accounting to analysis of financial reports and financial health checks, advising the management about the right decisions to be taken and also provide support to the operations of the company.
Section 149(3) of the Companies Act 2013 states as follows: “Every company shall have at least one director who has stayed in India for a total period of not less than one hundred and eighty-two days in the previous calendar year.” PCFO team can assist Corporates to identify Resident Directors for appointment and ensure that compliance to this section is taken care of.
Section 149(1) and Section 149(6) of the Companies Act’2013 requires certain class of companies to appoint Independent & Women Directors. PCFO team can assist Corporates to identify the relevant Director for appointment and ensure that compliance to these sections are taken care of.
Vendor Bills Accounting, Processing payments, Reconciliation, Confirmation of Account, Managing compliance of MSME vendors, Ensuring efficient vendor management.
Invoicing, Statements, Collection Review & Reports, Reconciliation, Confirmation of Accounts, Ensuring the Sales & Marketing team get the right reports.
Employee & Contractors: Master Data, Agreements & Contracts, Appointment letters, Leave management, Payment of salary & wages, Issue of payslips, PF & ESI compliance, Gratuity, Tax planning for the employees, TDS Return filing for salary, Tax Returns for employees, Key Management Payroll & Tax management.
Capex Budgeting, Procurement of Capital Assets, Ensuring Installation Certificates’ are issued, Capitalization of the Assets, Asset coding, Deciding the useful life of the asset, Provision of Depreciation, Fixed Asset Register as per Companies Act'2013, Physical verification of fixed assets, Reconciliation with the books, Fixed Asset Accounting, Insurance for the Assets.
Without cash, a business would come to a halt. Cash needs to be managed aggressively and the management should know when and at what point of time cash is available and how much cash can be spent. In the event of surplus cash how to optimize the utilization of the surplus cash and in the case of deficit cash how to bridge the gap. The Cash forecasts would also aid in improving the collection efforts, payment cycle to vendors, etc. PCFO team can support with the preparation & review of daily / weekly / monthly / quarterly / annual Cash flow statements and aid the management to take timely decisions.
Fund management, Reconciliation of accounts, Review of costs charged by Bank with the sanction terms, Providing the required details to Bank, Attending meetings with Bank officials and corresponding with the Bankers, Preparation of CMA & assistance in obtaining Credit facilities & Term loans.
Goods & Service Tax (GST) came into effect in India with effect from 1st July 2017. The compliance became paperless requiring greater domain knowledge and technology. The challenges in claiming refunds, matching credits, adverse and contrary advance rulings, litigations, etc. are some of the challenges faced in the business. PCFO team can support with the identification of the right HSN code, GST registration, Reconciliations, LUT application / renewals, Filing of Returns, Refunds & support to resolve litigations.
Tax planning is very crucial for any individual or business and PCFO team can provide support to ensure the tax planning is done well in advance and the necessary tax is paid and the tax returns are filed before the due date. Any notices received from the Income Tax department can be also attended to and necessary action taken and get the assessments closed.
The micro, small and medium enterprises need to be registered under MSME for enjoying the benefits provided under various Govt. schemes to the industry. Though not a compulsion, it is always advisable for the newly established enterprises to get themselves registered under the ministry. The registered enterprises are eligible for certain benefits that let them go a step forward towards making them successful commercially. Udyog Aadhaar Number (UAN) is a 12 digit registration number issued by the MSME to existing or new small and medium enterprises. It has simplified the procedure of filing for MSME and reduced the time and efforts made in the process of applying and verification of the documents for the MSME registration.
PCFO Team can help with regular Accounting Health Checks to facilitate management with – Compliance of various statutory compliances, Financial Analysis and action to be taken in the event of adverse ratios, Application of funds as per the Cash forecasts, Ensure inventory levels are managed, No long outstanding dues with any customer, Quality issues are attended without delay and ensure debit notes are not issued by the customer, High value purchases and its commercial terms and approvals, Benefits of Tax allowances are taken on time, etc.
The measurable value which demonstrates how effectively the company is achieving its key business objectives. KPI’s are measured as per the metrics, for e.g.
Financial metrics – EBIT, EBITDA, Breakeven point, Contribution margin, Interest coverage ratio, Average collection period, etc.
Sales metrics – Sales Target, Sales per region, Sales per salesman, Sales Growth trend, Lead to Sales %, Product performance, No. of customer complaints, Sales Awards & Recognition, etc.
Supply Chain metrics – Inventory Turnover ratio, Days sales inventory (DSI), Obsolete stock, Slow-moving stock, Carrying cost of inventory, On time deliveries, etc.
PCFO team can help you with the KPI identification, tracking and analysis for effective business management.
The objective of any business is to maximize profits and profit is the oxygen for the survival of the business. If you are looking out for support in this mission, PCFO team is there to help you achieve the same. PCFO team would start with discussions with management, understanding the business, review of the financials, Customer iteration, Pricing policy, Debt management, Cash management, Cost control measures, Production efficiency, Risk management, scissor cut required for any activity, investment required for enhancing production levels, increasing marketing scope, etc.. and provide a detailed report recommending for areas to be focused upon to improve profits.
Cost control is prevention of waste within the existing system. For cost control, the plan or the budget has to be in place which can be compared from time to time and if the costs are exceeding the budget then various measures are to be taken to control cost. PCFO team can study and support the management to identify the potential areas wherein cost can be controlled – production process, waste management, plant capacity utilization, manage inventory, risk management – Forex & Insurance, Training to workers and employees to improve productivity, lean management, regular analysis of the important ratios, use of latest technology to reduce communication cost, travel cost, improving negotiation skills, continuous review of costs, alternate options for power & fuel, identify new vendors, float open tenders for procurement, restructuring the organization, etc.
Accounting policies are the set standards based on which the Financial Statements are prepared. In general, the accounting policies - Revenue Recognition, Useful life of assets, Valuation of inventory, Recognition of Goodwill, Defining the Authority Matrix, Purchase procedures, Cash management procedures, etc. PCFO team can help your company with preparation of the Policy & Procedures Manual and implementation of the same.
What is risk? An uncertain event or condition, which if it occurs, would have an adverse impact on the achievement of the objective. Hence risk management cannot be ignored and managing risk is one of the major elements of business. Some are insurable and others are manageable. PCFO team can help you to identify the risk areas and advise you on how much of the risk can be borne and what needs to be insured.
Compliance is important and more evident as the business grows and becomes more complex. Compliance reflects the company meeting with its legal obligations to protect the wealth, health, safety and welfare of others. With more challenges in this area, it is advisable to handover the responsibility in expert hands. PCFO team can help you to ensure that you meet all your compliance needs.
Budgeting and forecasting are important to set targets for income and expenditure and then be accountable to those targets as the year progresses. The most financially stable businesses have a budget and a forecast. The main benefits are: ... Take control of what's coming in and due to go out of the business. Seek the support of PCFO Team.
A lean organizational structure is a structure that is designed to create more customer value using fewer resources than a traditional organizational structure. The goal for all members of an organization that utilizes a lean structure is to constantly find ways to improve the processes of the organization and to make the organization more efficient.
When an organisation wants to have the right to use the asset, it should/must decide how this asset would be financed. There are many options to choose from, and the PCFO team can help you with the right decision.
Mergers and Acquisitions (M&A) refers to the consolidation of two companies or their assets through various types of financial transactions creating value, better economies of scale, better use of resources, a bigger market share, higher profit, etc.. A good opportunity should be identified and with good analysis and study the opportunity must be converted into a deal. PCFO team supports with the Finance Model, Project Report, Teaser, Business Valuations, Due Diligence support, Identification of the right partner, Competitor analysis, Negotiation to get the best price, Legal support for both pre & post M&A, etc. End-to-end support would be assured.