Accounting, Reporting & Compliance
Growth is a direct function of the number of transactions a business engages in. As the volume of transactions increases, the complexity of business operations also increases. In order to smoothen the complexity of operations, accounting, reporting and compliance functions within an organization are a must. The accounting and reporting aspect of the function allows the systematic recording of transactions, with adherence to the respective accounting standards, and legal compliance requirements.
The systematic recording of transactions allows for a framework to keep track of company financial health as well as create a structure for complying with industrial and tax related compliance.
A proper accounting, reporting and compliance function is a foundational element of a successful business. By maintaining accurate financial records, reporting financial performance, and ensuring compliance with legal and tax requirements, companies can build investor confidence, manage cash flow, and make informed financial decisions.
Financial Planning & Analysis
Financial Planning & Analysis (FP&A) is a necessary function for all companies, irrespective of size. FP&A can be thought of as a decision intelligence tool because of the tools that it comprises. Some key tools used in FP&A are:
Long term financial model: Created for 5 years and encapsulates long term strategy
Annual budgets: Created as a benchmark for the next 12 months
Monthly forecasts: Created to track and correct deviations on an intra-month basis
Scenario and sensitivity analysis: Scenario analysis helps businesses plan for different possible outcomes of a decision, while sensitivity analysis helps identify which factors have the greatest impact on those outcomes, allowing businesses to make more informed marketing decisions..
Dashboards: Provides insight to decision makers through data visualization
But Why Do You Need FP&A
Effective financial planning and analysis can help companies make informed decisions. FP&A can provide managers with accurate and timely financial information, allowing them to make data-driven decisions that are aligned with the company's goals.
FP&A can help companies allocate their resources more efficiently. By analyzing financial data, companies can identify areas where resources are being wasted or underutilized. This can help them optimize their operations and improve profitability.
Managing Board Communications:
A board of directors has a fiduciary responsibility towards delivering maximum value to the investor and other stakeholders. However, in order to deliver value, they need to be well informed on the key risks, opportunities, and the current performance of the company. FP&A enables this by providing insights into key operational and financial matters, as well as by communicating the relevant risks and opportunities so that the board can set the strategic direction for the company and navigate through complex business environments.
Foresight is the main driver of all FP&A functions, and thus can help companies manage risk more effectively. Tools making up the FP&A framework like forecasts and budgets are drivers of risk management as they are made accounting for key political, economic, legal and other major risks.
Buy Side Deal Advisory:
We work closely with incubators, angel networks and micro VCs and assist them in evaluating the deals they receive through extensive business due diligence and financial due diligence exercises. Through business due diligence, we examine the market size of the prospective company, strategic positioning of the company and the key investment trends seen in the industry. Through the financial due diligence, we evaluate the company’s financial position, performance and identify key risks related to compliance. These two practices ensure that the terms of the investment are fair and representative of the economic reality of the business.
As entrepreneurs seeking to drive business growth, it is very easy to lose track of where your business is heading as you are constantly looking to solve operational problems. Through strategic advisory, the entrepreneur’s focus is realigned towards the bigger picture, as it enables informed decision making by creating a strategic roadmap powered by research and analysis and long term financial planning. A strategic roadmap incorporates the entrepreneur’s broader vision, and entails information on macroeconomic, market and industrial trends which helps in ensuring appropriate positioning.
On the basis of this research and roadmap, a long term financial plan is created. This financial plan is a roadmap for financial success as it holds the entrepreneur and company management accountable from any deviation in performance.
M&A Transaction Management:
M&A transactions are often complex, unpredictable and require alignment between the target, the acquirer to ensure maximization of synergies and value for both parties. As strategic advisors, we ensure that a strategic financial plan exists to ensure integration of the new entity is successful and the new entity grows profitably. Integration of two separate entities are not just a function of financial management but is also dependent on ensuring legal and regulatory compliances are adhered to and thus ensures that these requirements are fulfilled.
One of the prerequisites for an entrepreneur, along with innovation is leadership. Most entrepreneurs bring with them expertise in the product/service or a well crafted business model, but might not always be experts in the financial domain of their business plans. In order to unlock sustainable and continuous growth, financial leadership becomes pertinent to the success of the venture. Key benefits of financial leadership are:
Helps identify and exploit the key levers that drive revenue and efficiency.
Helps identify the appropriate resource mix to be allocated to ensure sustainable growth
Identifies weaknesses and threats and ensures that they are mitigated.