Financial planning is a very complex job, it must be well prepared in different areas and departments, it must be coordinated with managers at different levels. Dynamic financial planning is a very effective and appropriate management tool in assessing the present and future position of an entity. There is also a difference between the plans according to the legal status of the company. From the point of view of planning work, the peculiarities of the balance sheets of the international group are becoming more and more important today.
To this day, the CFO or financial/economic manager has “limited” responsibilities and tasks in the traditional sense. However, this role has changed a lot in the last 10-20 years and is clearly influenced by the size, ownership and cultural background, and international embeddedness of the given company.
The main tasks of the CFO are:
- Monitoring the realization of the company’s goals and economic plans, elaborating proposals for measures in case of deviations. Keeping the Company’s financial regulations up to date
- Prepares monthly, quarterly, and annual management report in accordance with generally accepted financial principles and relevant Indian rules.
- It determines the annual operating and investment costs and controls the expenses.
- Ensures compliance with proper financial reporting obligations
- CFO consulting service manages the tasks related to the receipt and payment of invoices and the company’s finances. Ensures proper internal control of these tasks. He is responsible for paying suppliers and paying employee wages, as well as collecting receivables from customers. Ensures that business practices are followed in accordance with generally accepted accounting guidelines
He also manages the company’s financial activities, including:
- preparation and review of the company’s annual budget;
- quarterly and year-end financial reports;
- assessment, reporting, and analysis of discrepancies;
- preparation of financial models and plans;
- ongoing and expected work programs
- planning your direct working hours and material requirements;
- proper inventory audit, invoices and receipt
- ensuring control of receipts in accordance with the terms of the relevant contract;
- tangible asset inventory supervision,
- requirements and boundaries for the new financial system
It is important to emphasize that these tasks and responsibilities are not always an operational, day-to-day routine: depending on the size of the organization, there are managers in each area who report to the CFO but are directly responsible for the operational execution and control of the tasks.
A professional CFO in India also has the knowledge of FEMA (Foreign Exchange Management Act) which is an act of the Indian Parliament to strengthen and modify the laws of foreign exchange in order to encourage external trade with other countries to promote the orderly development and maintenance of foreign exchange market in India.
The professional CFO services from USAIndiaCFO offer the best financial services to the individual companies in India and also accommodate with the foreign exchange with respect to the FEMA act. So there would not be any problem faced by a company with the matter of foreign exchange and trade.