The dilemma of SMEs' financial management
We believe a lot of people still remember Song xiaobao's sketch "eat noodles" in the plot: the accountant of the noodle shop is the boss's brother-in-law. He said he was professional, but customers should not pay after eating noodles, he fiddled with the abacus for a long time, still not clear.
In fact, it is not the small noodle shop only have this kind of misrecording. Many companies that are growing at scale have similar phenomena.
Scaling enterprises mainly refer to small and medium-sized enterprises that have passed the stage of "from 0 to 1" ,and entered the stage of "from 1 to N". They have between 10 and 300 employees and an annual turnover of between 3 million and 400 million yuan.
Most of these enterprises cannot afford the high salary of professional financial managers, and the business volume cannot support full-time financial personnel, so family members or external bookkeeping agents are invited to simply record the financial status of the enterprise.
However, most of the family members lack professional knowledge, the agency bookkeeping company only provides basic bookkeeping services, financial consulting companies can only provide improvement suggestions for the problems in the enterprise development process, can not go deep into the operation of the enterprise, practical ability is limited, resulting in the low financial management ability of the enterprise.
Lack of effective financial management brings a series of problems: for example, no budget or budget management failure, which affects the normal operation of enterprises; Financial statements can not reflect the true situation of the enterprise, can not disclose the risk in time, so as to directly affect the correct decision of the management; Unable to meet the understanding and judgment of potential investors on enterprises in financing activities, resulting in financing difficulties; Unable to meet the requirements of financial compliance, unable to prevent operational risks, thus hindering the sound development of enterprises...
This is the dilemma facing many small and medium-sized enterprises: full-time finance directors are paid too much, and the business volume of the company is small, its workload is not saturated; With family or external agency bookkeeping company, and difficult to meet the needs of rapid expansion of enterprises. How to do?
Sharing the CFO is an effective solution.
Advantages of sharing CFO
Since SMEs are in need of financial management and do not want to spend a lot of money to recruit a full-time CFO, why not solve the problem by sharing a CFO?
In fact, CFO sharing is not new.
For example, The CFO Centre, a British company founded in 2001, is a company that provides time-sharing CFO services and is now operating in China.
In this context, Joseph zhang, partner and CFO of nHACK, a Nordic venture capital fund, founded Fintegrity, a company that provides integrated financial services for small and medium-sized enterprises, as CFO sharing service. First, a full-time team of professional finance directors will be recruited. After training them in professional experience, communication skills and teamwork, they will provide services to the company.
Compared with hiring a full-time CFO, an enterprise sharing CFO has many advantages:
First, low cost, high cost performance.
Fintegrity has created a new concept of integrated financial services to provide SMEs with cost-effective, flexible and highly customized services through an effective combination of accounting, CFO financial management, tax and legal services. Fintegry is chosen to provide CFO services at a lower cost than the annual salary of a full-time CFO, which is in line with the cost requirements of SMEs.
Second, liquidity is low.
The average working life of a full-time CFO in a private company is 2-3 years, and the CFO sharing company can become a long-term financial partner of the company.
Compared with the internal CFO, Fintegrity provides a professional CFO team, enabling the enterprise to obtain the most objective and optimized comprehensive advice. It reduces the risk of subjective judgment. Fintegrity's accounting quality is controlled and guided by a professional and experienced CFO and an audit level professional team. Report quality can be applied to business analysis and audit, financing, etc. It can greatly reduce the economic loss caused by filling the accounting quality loopholes in the future.
Fourth, internal control and external control.
Fintegrity's team of partners are leading experts in the industry, following the latest developments in China's fiscal and tax laws. Thus help each enterprise customer avoid the tax law risk. In addition to external risks, good internal financial processes and standards can help enterprises control internal risk control. This is a financial management service that is not available in many markets with low cost bookkeeping and internal accounting. Fintegrity has a set of standardized and improved internal control procedures for corporate customers.
One of the advantages of sharing CFO is that it is very flexible, and the service can be started or terminated at any time. While controlling the cost, the enterprise can reduce the turnover of financial personnel and ensure the consistency of financial information. At the beginning of the service, the company can choose one CFO who is most suitable for the needs of the company. In the process of service, if the CFO is found to be inappropriate, it can be replaced at any time.
Finally, better solutions can be provided.
When the company is faced with problems, the full-time CFO usually makes decisions independently and there are decision-making risks. The team of CFO sharing company can discuss together and gather the collective wisdom to help the company find the optimal solution.
Fintegrity takes CFO service as the core, and CFO controls the accounting quality. To enable more SMEs to benefit from cost-effective CFO financial management, Fintegrity standardizes and classifies the CFO financial management field and provides flexible and highly customized services for smes.
At present, SMEs have many pain points in the three dimensions of strategy, operation and support. For these pain points, Fintegrity can not only help enterprises improve their performance, but also help them establish internal control system.
As an emerging model, CFO sharing solves the financial management pain point of many large-scale growth enterprises, and has huge market potential in the future.
According to 《the ministry of finance's notice on printing and distributing the 13th five-year plan for accounting reform and development 》, by 2020 China will have about 180,000 accountants with senior qualifications. In reality, these senior accounting personnel usually go to large enterprises, government departments as senior management, small and medium-sized enterprises want to hire a senior accounting personnel is very difficult.
By the end of 2018, there were about 30 million small and medium-sized enterprises in China, according to the ministry of industry and information technology. Conservatively, even if all senior accountants go to SMEs, there is still a huge gap in the market, which is the future growth space of the CFO sharing industry.
How does this model deal with growing pains?
From the perspective of the enterprise, the CFO holds the key financial information of the enterprise. If the CFO cooperates with the competitor after the expiration of his service, how can he ensure that the CFO does not disclose the information?
From the CFO's point of view, the CFO may bypass the company, sign service agreements with customers privately and provide services, or set up a company to compete with the original company after leaving the company.
In this regard, Fintegrity believes that it is very important to build a trust relationship between the company and the part-time CFO. The part-time finance director must sign a non-disclosure agreement before providing services to the company, and will be severely punished once the business secrets of the company are disclosed.
As for CFOs, when signing the labor contract with CFOs, it is clearly stipulated in the agreement that "it is strictly forbidden to sign any service agreement with customers in private. Once found, part-time cfos will be immediately cancelled and fined."
Currently, Fintegrity has more than hundred of clients. In the New Year, Fintegrity has grown and become the best choice for more and more SMEs.