In India, start-ups receive great benefits from consultancy services and they play a significant role in tackling the complex and continuously emerging financial environment. Consultancy services provide guidance and valuable expertise contributing to the success and growth of businesses. These services provide various benefits to the companies that include advice by experts on important aspects like planning finances, analysis of profit-loss related statements, balance sheet as well as cash flow statements and other financial statements. The expertise of consultancy services provides valuable guidance by experts that enables businesses to make better financial decisions and develop better financial plans that lead to the enhancement of their capital options and funding structure.
Financial services Consulting an Essential Tip for Startups
A consultancy or consultancy firm is an organization providing professional consultancy services to businesses to provide them with knowledge and specialized labor with charges. A consultancy business can have one or many professionals who can provide guidance and are from various business fields like management, engineering and many more.
Consultants from management fields mainly work with corporate leaders and supply them with industry-specific specialists called subject-matter experts and also with generalists. These consultants are schooled in business or management schools. These management consultants often provide guidance about ways of achieving a corporate goal that can lead to a company project. Most of the consultancy businesses are quite successful but they charge excessively high prices for their services.
There are many consultancy organizations that provide assistance for the execution of different tasks who are either consultants, technicians or other professionals. Consultancy services are a part of the tertiary industry generating huge amounts of yearly income. The top ten consultancy businesses generated $150 billion in revenue between 2010 to 2015 whose average annual growth rate was 5%.
Key Financial Services Consulting Companies
There are various consultancies providing financial services to the companies. These consultancy businesses serve various industries including:
- Financial services
- Architecture and engineering
- Hotel businesses
- Healthcare
- IT(Information Technology)
- Human capital
- Legal fields
- Compliances with music regulations, etc.
The consultancies providing financial consultancy services are:
- Bain & Company
- Boston Consultancy Services
- McKinsey & Company
- Tata Consultancy Services
- EY-Parthenon
- Accenture
- Deloitte Consultancy Services
- Insight Sourcing Groups
- Analysis Group
- Mercer
Financial Assistance with Virtual CFO Service
Virtual CFO (Chief Financial Officer) are the services that offer remote financial management and strategic assistance towards any kind of business. This type of service is majorly used by small to medium-sized enterprises (SMEs) or startups that do not have the resources to hire a full-time Chief Financial Officer. It includes the benefits like:
- Financial strategy and planning.
- Financial reporting and analysis.
- The management of cash flow.
- Accounting and bookkeeping oversight.
- Cost management.
- Financial compliance and management of risk.
Some of the Key Financial Tips for Start-ups in India
Starting up a new business can be an astonishing task but overwhelming at the same time when it comes to finances. The main reason for the failure of a new start-up business is that they may not be able to handle their finances well from the beginning. Some financial tips for start-ups are:
- Setting financial goals: The entrepreneurs of businesses are so focused on their time and developing new business ideas that they often forget about managing finances which leads to finances falling down the priority list. So, the businesses must set up some short-term and long-term business goals and track progress against them.
- Development of revenue targets: The establishment of revenue projections which are both an ambitious and realistic task can be done with the help of developing financial models as it makes the quarterly revisit easier.
- Estimation of expenses: The estimation of the essential and optional expenses including fixed and variable expenses must be done and managed.
- Limiting expenses early: One must think twice before spending money. Contracting out non-core functions like accounting can be helpful to keep overhead low.
- Creation of annual budget: Creating an annual budget can be very helpful as it helps us to make informed decisions about the best use of the finances like household budgets at home. Setting up a budget also helps in tracking down the performance of the company according to the plan.
- Building in contingencies: Including contingencies in businesses helps businesses to be prepared to manage unexpected expenses and weather slower periods.
- Accessing capital needs: Funding of most of the businesses can be limiting in case if it is funded by the owner. If more capital is needed to establish needs then you can provide it on your own.
- Spending smartly: Prioritizing the spending on efforts will lead to production of fuel growth, and revenue and save time for spending on profitable pursuits.
- Investing in acquiring customers: Strategies should be set up in order to acquire customers as revenue cannot be generated without them. Therefore, the company must work on minimizing its operating costs along with strategic planning for acquiring customers from the beginning.
- Understanding income tax liability: Knowing the local tax laws and using software for the calculation of taxes can be beneficial to the company and help in reserving capital needed to pay taxes on time.
- Understanding sales tax liability: Selling a product or service may require collecting and paying sales tax. So, calculation of sales tax accurately and paying it on time must be ensured.
- Keeping separate business accounts: There must be a business checking account as well as a separate credit card as it makes recordkeeping and tax audit easier.
- Recordkeeping must be done carefully: One must ensure that the tracking of customer and supplier invoices, receipts of expenses and other financial records must be tracked carefully.
- Investment in accounting software: Accounting software can be used by companies for keeping financial records easily and efficiently.
- Managing cash flow: Managing cash in businesses is very important as improper management is one of the most common reasons for the failure of a business.
Conclusion
In India, begin-united states of america and consultancy companies have developed over the previous couple of a long time. because of improvements in generation, increasing enthusiasm amongst entrepreneurs and supportive authorities regulations have raised the self assurance of recent business entrepreneurs in organizations. Consultancy agencies in India are presenting amazing services to begin-u.s.a. and other organizations by presenting them with know-how and guidance which has promoted their growth over the years.
The consultancies no longer only offer guidance about economic business but additionally offer steering about hazard management, social media, technology, logistics, advertising, trouble-solving, human assets, and so on. diverse accounting software also are available that may assist begin-up groups and other businesses in handling their accounting and budget.
FAQs
1. Who are consultants?
Consultants are experts who provide guidance and professional advice to businesses or individuals in the areas where they have expertise.
2. Who provides consultancy services to start-ups?
Various consultancy firms are present that provide consultancy services to start-ups.
3. What are the top five consultancy firms that provide consultancy services?
The top five consultancy firms that provide consultancy services are- Bain & Company, Boston Consultancy Services, McKinsey & Company, Tata Consultancy Services, and EY-Parthenon.
4. What are the various industries in which consultancy businesses serve?
Consultancy businesses serve various industries including- Financial services- architecture and engineering, hotel businesses, healthcare, IT (Information Technology), etc.
5. Why should a company use management consultants?
A company uses management consultants to help CEOs drive effective work culture, come up with new and fresh ideas and learn from various sources including clients.
