Virtual CFO Services in India

Spend less time worrying about accounting & taxes and focus more time on what really matters.Our Virtual CFOs will do error free accounting, do tax planning, file tax returns, and provide business reports which provide guidance to scale your business. Now, you will get more time to focus on your core business. Get ready to put an end to accounting headaches and financial concerns for your business.

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Challenges faced by Startups and MSME's

More than hundred million startups have been formed throughout the world to date, and almost fifty million new ones are formed every year. However, only half of small businesses survive the first five years of operation.

That other half who shut down their business, mostly do so because of lack of their own business financial knowledge which leads to wrong business decisions.

Majorly wrong business decisions occur due to unawareness about day-to-day business financials such as :

Poor Cash Flow Management

Inconsistent cash flow may have a devastating effect on a firm and is the most common cause of its collapse.Liquidity is the major concern. However, inability to generate invoices effectively and bring in enough money to pay expenses causes unpredictable costs.

Not filing Tax Returns on time

Recording your company's annual transactions is one thing; managing them, observing patterns, and submitting taxes are whole different matters entirely.

Owners of businesses strive to save money by doing this either themselves or through non-tax experts. Thus, for small businesses, the most pressing issue with taxes isn't payment, but rather compliance with the law.Compliance costs money,as a result, small enterprises bear a greater share of the cost.

Not getting bank loans and funding

Most businesses lack sufficient working capital because they are concerned that investors would not provide larger sums of money.Banks, on the other hand, like to see plans that are based on reality. It is possible that you could run out of money sooner than expected if you borrow less than the amount necessary.A lack of funding may have a negative impact on any company, but it can be more damaging to smaller businesses with a lower budget.

Non-availability of Business Analytical Reports

A lack of analytical reports will prevent a small firm from employing the right talent, setting up the business in a new market, and pursuing new possibilities.Furthermore, regardless of how diligently you're going to get slammed with unexpected costs. At this point, you must have some sort of analytical reports to understand how you may deal with it and do not miss the expansion opportunities.

Overwhelming Financial Obligation

Having an excessive amount of corporate debt is unquestionably a problem.Many people find themselves in this situation because they have accrued debt on personal credit cards, or because their local banking offered them a line of credit that has since been exhausted and comes with a high interest rate.These scenarios can have long-term and short-term consequences for the organization, regardless of whatever loan instrument is used.

Neglecting to file required reports

All financial transactions involving a small firm must be documented, and a bookkeeper is frequently employed to do so.Sales, costs, and earnings all go within this category. Despite the fact that private enterprises aren't obligated to divulge financial data, poor record keeping can lead to major consequences. Fraudulent tax returns can lead to penalties, interest, and even jail time if the revenue is not accurately reported.

Failure to Pay Taxes

Overpaying the Income Tax is a waste of time and money that may be better spent elsewhere. However, the bigger challenge is failure to pay taxes.In order to properly file tax returns with the appropriate local, state, and national taxation authorities, as well as other governing bodies, it is critical that you disclose all of your financial transactions accurately.There are fines and hefty penalties if you fail to pay taxes on time.

Combining Business and Personal Finances

Combining corporate and personal finances is a dangerous practice that makes it harder to track cash flow and, in the long run, can hurt a company's worth.Auditors, whether governmental or private, will perceive this as a major red flag.

All of the above challenges that are faced by small businesses and startups can be solved by the aid of Virtual CFO Services.