Hiring a CFO is essential, not only for large companies, but especially for SMEs going through a sensitive period or start-ups seeking financing. The CFO is a crucial element that helps prevent financial risks, but also supports the management team in making important decisions. The good news is that you don’t have to hire a full-time CFO if your budget doesn’t allow it. Why is hiring a CFO on a time-share basis interesting?

Advimotion is a financial consulting firm that assists startups and SMEs in obtaining non-dilutive financing and equity fundraising. We also act as advisors in business sales transactions to best represent the interests of sellers.

We offer strategic consulting and outsourced CFO services to ensure the financial and operational monitoring of your business. Finally, we take care of the drafting of investor documentation : business plan, pitch deck, creation of reporting files and valuation calculations.

For more information, please contact us.

Risk Mitigation

Risk mitigation refers to the identification, assessment and prioritization of risks, as well as the monitoring of the cost-effective application of resources to minimize or control the impact caused by the occurrence of an incident. A timeshare CFO studies all the risks an organization faces, both internal and external, and then develops a plan that will not only help reduce those risks, but also maximize the realization of opportunities during such events.

Examples:

• Prioritize payments during a recession.
• Help management prioritize operations during emergencies or health crises.
• Ensuring that all terms of the various agreements signed by the company protect the company’s interests and that no legal complications arise later.

Stakeholder relationship management with a timeshare CFO

Managing relationships with the startup’s stakeholders such as board members, investors, creditors, bankers, customers, etc. is a tedious task that overwhelms the executives or founders. The timeshare CFO first coordinates with them on what action to take and then sends them regular reports on how their interest is being taken care of by the organization. He or she is responsible for maintaining the firm’s goodwill with these stakeholders.

Statutory and other compliance for start-ups

There are various statutory compliances such as corporate law, income tax, etc. that need to be complied with. The timeshare CFO is versed in the subject and ensures that the company complies with all the requirements. The government offers certain benefits through various programs to promote business. This is an area where the CFO can advise business leaders to get the maximum benefit from these policies, such as on their financial decisions

Reliable, accurate and timely CFO time-share reporting

One of the things that accounting does is record transactions. While error-free recording of transactions is important, it is equally important that this data is reported in a timely manner. This allows management to understand the health of the business, compare it to the organization’s goal and take corrective action as necessary. In addition, these reports are done in real time and the use of various technological elements has made the process increasingly accurate.

Financial and Strategic Planning for the Timeshare CFO

Based on management’s objectives, the timeshare CFO prepares a business plan. The planning is usually divided into short-term, medium-term and long-term plans. The business environment is dynamic and continues to change every day. In such a scenario, it is very important to keep an up-to-date and ready financial plan and forecast. The forecast is usually done for a defined period of time and includes three key statements: profit and loss, capital expenditures and cash-flow.

The typical plan would include details such as :

• Projected revenues and expenses.
• Need for funds.
• Policy on investing surplus funds, if any (cash-flow).
• Capital budgeting.

Pricing of products/services.