The VCFO Checklist

Business Plan

• Develop and maintain a rolling 5-year financial plan.

• ​Regularly update financial plans based on actual performance.

• Use software tools for financial modelling and forecasting. 

• Align the financial plan with strategic business objectives.

• Regularly review the financial plan with the board and other stakeholders.
   

Budgeting and Forecasting

• Create multi-year annual budgets with functional targets.

• Establish a regular forecast for continuous Financial Planning.

• Monitor industry trends to adjust budget forecasting.

• Build strategic business goals with key KPIs & KRAs.
   

Capital Structure

• Capital raising strategy, involving equity & debt, based on a business plan.

• Regularly monitor the market for financing opportunities and borrowing cost savings.

• Investor Management by updating on business performance and outlook.
   

​Capital Investments​

• Apply a rigorous capital budgeting process for major investments.

• Conduct risk assessments and sensitivity analyses for each capital investment decision.

• Regularly monitor and report on investment performance.

• Ensure investments align with strategic business objectives.

• Evaluate the opportunity cost of each investment.
   

Working Capital 

• Negotiate best rates & payment terms with vendors and clients.

• Prepare monthly cashflow projections & tie up any working capital needs with bankers at the best rates.

• Inventory planning and optimization for better working capital needs.
   

Cash Flow Management

• Optimize cash flow through structuring vendor and client contracts.

• Cash Management for operational needs and strategic initiatives.

• Maintain a reserve or line of credit for emergencies.

• Deploy cash management tools for real-time data.
   

Cost Accounting

• Budgeting for each product/service business line to gauge financial viability.

• Regularly review production efficiency and cost controls.

• Allocate overhead using the most appropriate cost drivers.

• Conduct regular cost variance analyses.

• Use cost information for pricing decisions.

• Ensure cost accounting reports support strategic decisions.
   

Financial Analysis

• Forecast, report, analyze, and monitor key ratios and financial metrics for monitoring business performance.

• Define custom KPIs, align with business strategy, and monitor real-time by the customized dashboard.
   

Financing Reporting

• Ensure timely and accurate financial statements.

• Implement strong internal controls for financial reporting.

• Use a reliable ERP system for financial data management.

• Ensure compliance with regulatory reporting requirements.

• Ensure financial reports aid strategic business decisions and performance management.
   

Risk Management

• Implement a comprehensive risk management framework.

• Ensure that all significant business & financial risks are identified, quantified, periodically reviewed, and pro-actively managed.
   

Compliance Management

• Comprehensive understanding & analysis of business offerings and preparing a checklist of compliance requirements under various regulations.

• Fix accountability for proper and timely compliance & reporting.

• Review compliance in a periodic manner and swiftly address any non-compliance as soon as it is detected.

• Install a compliance management tool for proper tracking and compliance.
   

Tax Planning

• Plan & monitor the effective tax rate (ETR) for your business.

• Utilize available tax incentives and credits.

• Implement tax-efficient business strategies that also meet long-term business objectives.

• Ensure timely and accurate tax filings.

• Conduct internal tax audits to ensure compliance.

• Review cross-border transactions for tax compliance.