Why Virtual CFO Services is Necessary for Business?

Virtual CFO services play a vital role in growing company's revenue. Being a business, you can understand the growing pain that comes along with reaching new revenue levels.

Every business has a financial goal, and each of them has to face various challenges arising in the organization in reference to growth, financial aspects, accounting as well as management. And that's where the need for virtual CFO services arises.

In this blog, we will cover different aspects of virtual CFO services such as:

·         What are Virtual CFO services?

·         What services does Virtual CFO provide?

·         Why are Virtual CFO services necessary for businesses?

What are the Virtual CFO services?

Virtual CFO services are the services designed to offer businesses to bridge the skills gap present in the organization that requires high-level financial advice but doesn't require an in-house CFO in the role. Now the question arises, why to hire virtual CFO when you can have an in-house CFO. The answer is because an in-house CFO needs full-time payment which is at only a fraction of the cost. But virtual CFO services aren't long-term contracts, and you have to pay only for the services and time rendered. Moreover, you don't require an extra office space for virtual CFO services, unlike one in an in-house.

What services does Virtual CFO provide?

Virtual CFO services offer services such as:

   ü  Financial advisory

   ü  Accounting functions of the organization

   ü  Compliances of the various acts applicable

   ü  Corporate governance

   ü  Oversight of financial plans.

Why is Virtual CFO Services necessary for businesses?

There are a plethora of reasons why businesses need virtual CFO services. Below you can find several benefits of the same which will give you not one or two but many reasons to hire virtual CFO services:

Increased flexibility

Flexibility is one of the essential aspects of all businesses. As discussed, you can hire a virtual CFO whenever you need them. The virtual CFO providers allow you to enumerate hours depending on your requirements meaning you will only pay for what you need.

Adaptable to changes

It's quite apparent that small businesses grow and expands and because of the same, their needs also increase. A virtual CFO helps businesses to adapt to the changing needs. Additionally, it also provides financial aid to businesses based on their requirements.

Better control over financial activities

Generally, in small companies, there's a single person performing all of the financial assignments. This is a situation that gives rise to the risk of theft and fraudulence. In contrast, hiring virtual CFO services to perform such activities will give better control of the company's financial activities and along with it reduces the risk of any theft or fraud.

Expertise in taxes

Tax is no less than a nightmare to any business owner. It's quite a strenuous subject for small business owners. The IRS (Internal Revenue Service) rules keep changing, and the fines and penalties can be more than your expectations. Hiring a virtual CFO will help you handle taxes efficiently and will save your business from getting fined.

More accurate and valid financial statements 

It's often observed that the financial statements of the companies are inaccurate and contain errors. As a virtual CFO has expertise in the same, they are indeed great at preparing correct and accurate financial statements for your company so that you can have a sigh of relief. From the above discussions, it’s quite clear that virtual CFO services are pretty imperative for any business, especially those in the growing stage. If you have any query regarding the same, then you can contact the experts of Enterslice, where you will get the best advice. Look here for more details - https://enterslice.com

Know About Vendor Agreement in India

Vendor agreement is a contract between different parties to achieve a common goal. Being a business, you may need vendors or service providers for various parameters of your business to be it internet provider, a graphic design agency that you hire for your website, telephone provider, etc. All such service providers are known as vendors.

Vendor Agreement

In this blog, we will focus on various aspects of vendor agreement. The topics included are:

• What is a Vendor Agreement?

• The primary goal of the Vendor Agreement

• What are the advantages of the Vendor Agreement?

• Requirements

What is a Vendor Agreement?

A vendor agreement is an agreement or a legal document that defines the provisions and state of works to be performed by the vendor. Typically, a vendor agreement can cover a variety of areas such as software, office supplies, consultants, technology, professional services, etc. 

It is very critical to have a vendor agreement in place because it helps set the expectations among the parties when it comes to (among other things) the type and quality of services provided, the duration of services, the cost and payment terms, and liability considerations if things don’t go as planned. You might doubt the same but yes, that happens in business. 

Generally, a vendor agreement is made for small businesses and when you have a couple of products or services for sale. 

The primary goal of the vendor agreement

Before we understand the primary goal, it’s important to understand the key points. The primary key points are cost, services, and products, what occurs when things don’t go as expected, and the dates for final delivery and more. 

The primary goal of the vendor agreement is to be through; every condition should be incorporated into the agreement carefully. 

A company which is reasonable for its vendors gets a strong notoriety and everybody likes to deal with the owners that treat suppliers nicely. 

What are the advantages of the Vendor Agreement?

A vendor agreement has a variety of advantages to offer to its clients. Some of the greatest benefits of it are as follows:

• Boosts efficiency

Vendor agreement lets one to clearly determine the financials, security policies, and other key details required for the same, hence, helping the business with increased efficiency. Moreover, it develops an effective vendor and supplier relationship. 

• Identifies and manages the vendor’s risk

With vendor agreement, one can have a complete description of duties, rules, regulations, and identification of vendor’s risk is also defined. 

Requirements

As already stated, it’s quite imperative to have an excellent vendor agreement in place. For the same, there are certain requirements. They are as follows:

• In the initial step, you need to show the dates in the starting page of the vendor agreement and bespeak the address of the two involved parties in the document. 
• Clarify your vending license with the agreement to show that your organization is legitimately permitted for selling items and services engaged with the agreement.
• You are supposed to figure out each one of the expectations from the vendor before composing the actual frame which may include taxes, costs, paying modes, delivery dates, compensation and periods, etc. 
• You must show the way you and your customer have consented to handle the tax imposed on the items and services.
• At last, you should specify the way to give deliveries for your received order, and how the order is going to be paid. 

For any further queries, you can contact the team of Enterslice and get to know more about the working of vendor agreement. 

Procedure for Mergers and Acquisitions services in India

What do you understand by mergers?

• When two or more entities combined together to form a new entity is known as a merger. The merger is clearly mentioned under the Companies Act, 2013.

• There are two kinds of parties involved in the merging, one is the merger and the other is merged.

• The merger is the one, that handover its assets to other entity; while merged is the one, who accepts the assets of the merger.

• In Mergers and Acquisitions process the companies, take approval of the board of the directors and shareholders. Without their approval, entities cannot undergo Mergers and Acquisitions.

What is the procedure of mergers?

• The first step is to hold board meetings to discuss the following details-

Scheme approval

Date, place and time of meeting for creditors and shareholders

• Once they come up with the resolution, it has to be published to check if there are any objections regarding the merger or not.

• A document of solvency must be filed with the ROC of their states before summoning up the members and creditors for the meeting.

• Before holding a meeting, members of the company must be notified at least 21 days in prior and further details regarding details of compromise and arrangement, declaration of insolvency, and a copy of scheme.

• Creditors of the company must also be informed at least 21 days, before the meeting. And 9th/10th of the creditors must approve the scheme of the merger for the execution.

• The final conclusion of the meeting must be filed within 7 days with the regional director, registrar of the companies and official liquidator.

• At last, the confirmation must be filed with ROC if transferor and transferee agree to the scheme and there is no objection filed against it.

Mergers and Acquisitions

What do you understand by acquisition?

In acquisition, two companies are involved; one is called the acquiree while the other is called an acquirer. Acquiree company is the merged and acquirer company still exists either with the same name or with a different one.

The acquisition involves the buying of a company by other company. To gain control ownership, the acquiring company must have at least 50 % of the shares of the acquired company and at the same time; give consideration to shareholders.

What is the procedure of Acquisition?

• You must do a detailed inspection of the company, which you are going to acquire to do away with future challenges. One should have a proper record of Revenues of the acquired company.

• Once you are done with the research, the acquiring company can contact the target company to clarify the issues, if any.

• After this, a non-disclosure agreement must be signed by the target company, stating that they will disclose any of the insider information to anyone outside the company.

• When the non-disclosure agreement is signed, the target company will hand over all the documents and other details to the Acquiring Company.

• The non-disclosure agreement will be followed by the submission of a list of documents by the target company to the Acquiring Company.

• The submission of documents may take some time, as the target company has to consolidate all the basic details required. Then the acquiring company will negotiate the prices with the target company if required. The author is an expert on the Mergers and Acquisitions, click here for more interesting information

How to make a Rental Agreement

What do you understand by Rental Agreement?

The rental agreement is a legal document, laid out between the tenant (who will be in temporary possession of a property) and the actual owner of the property that includes the terms and conditions to be followed by both the parties involved.

The property in the rental agreement may be a building, house, and flat, CD/DVD, machine tools or an appliance. It is always good to have a rental agreement for the smooth operation of the business in the future.

What is the procedure of a rental agreement?

·         Once you decide to have a rental agreement, you just need to let us know and our lawyer will get in touch with you regarding the same.

·         The lawyer will thoroughly discuss the needs and requirements to be mentioned in the rental agreement and at the same time, will educate you if there is anything you need to know or any latest updates.

·         When all your concerns are being acknowledged by the lawyer, he will send you a draft of a rental agreement for the reviewing process.

·         You can take a close look at the draft, and let the lawyer know about the changes you want if any.

·         It takes around 3 to 4 days for the whole process of rental agreement.

What are the benefits of the rental agreement?

Legit document of protection- Rental agreement serves as a document of legal protection. While lending your property to someone, there is always a risk of protection, so it’s always recommended to have the rental agreement signed.

Maintaining the relationship between the parties- Whenever you make an agreement, it includes all the points that may lead to a skirmish in the future if not told before renting out the property. As the terms and conditions are already sketched out in the Rental agreement, this will help in maintaining a healthy relationship between both the parties.

Avoiding the unanticipated expenses- If you have a rental agreement made, before leasing out a property, there are benefits of evading the unannounced expenses in the future.

One must have a written rental agreement because the verbal agreement is not likely to be enforced in a court as it is not possible to hold the terms and conditions accurately in a vocal form.

So a written copy always serves as a proof of an agreement that you arrived on at the beginning of the lease.

Few examples of terms and conditions when you are signing an agreement for renting a property.

Duties of an owner

·         Informing the tenants before visiting the property means not to make any surprise visit.

·         The property must be neat and clean before renting out.

·         Returning the deposit, after checking the property.

Duties of tenants

·        Payment must be made on time, as decided in the agreement.

·        Property must not be linked to any illegal activity.

Both the parties can also discuss their needs and required, that they want to include in the rental agreement and come to a common ground.

The author is an expert on a Rental agreement, click here for more interesting information .