Date : 27-04-2015 Platform/Online Media:: Your Story Source
A Mumbai-based start-up MyCFO manages finance and accounting operations for entreprenuers
Is managing functions such as finance and accounting preventing you from focusing on your core business? Do you feel you need more than just advice from business consultants on managing your company's finances? If the answer to either of those questions is yes, then you are not alone.
Several entrepreneurs today are looking for managed financial services. And, when cousins Deepak Narayanan and S. Venkat realised this, they decided to make the best of the opportunity and founded MyCFO, an on-site accounting and financial services venture, part of WealthTree Advisors.
Narayanan, 34, was a consultant with EY and Venkat, 41, was CFO at Hines, a US realty fund, before founding WealthTree Advisors, in 2007, a firm aimed at assisting foreign businesses set up a presence in India. They invested just about Rs 1 lakh from their savings to get the company started. However, with recession hitting the West and the policy paralysis deepening in India, foreign companies' interest in setting up base in India fell dramatically and this impacted their advisory business.
Meanwhile, during the course of their business dealings, they found that there was an acute demand for professional financial services among Indian businesses. "We met a number of Indian companies on behalf of our foreign clients, and we found that Indian companies' finance and accounting functions had not been able to keep pace with the times," says Narayanan. So, Narayanan and Venkat established MyCFO in December 2010. Today, 120 of the 130 employees of Wealth-Tree work for MyCFO, which also accounts for 90% of the company's revenue—for 2014-15, revenue stood at Rs 8 crore.
"We work with clients in an interim/ongoing CFO/controller role, or to improve the effectiveness of the finance function for large companies, in case a good CFO is already in place," says Narayanan. The professionals at MyCFO sit down with their client company's management and chart out its financial goals. Once the key deliverables are decided, they work towards their realisation. Outsourcing finance functions thus helps the management concentrate on its primary business.
"Our business is quite different from the regular business consultancy. We focus on getting things done rather than just giving advice," says Venkat.
Mumbai-headquartered, MyCFO has a presence in Delhi, Bengaluru, Hyderabad, Pune, Chennai and Coimbatore. But since the company professionals—engagement leaders in MyCFO parlance—work on site with their clients, the firm's services aren't restricted to these cities alone. "Since we work from within the premises of our clients' offices, we don't need to have our own office in every city," says Narayanan. MyCFO has about a 100 companies, spread across the country, on its client list. "Every customer, every situation and every time we deal with a customer is unique. It gives the team a lot of sleepless nights since we have to tailor make the solutions. But we deliver," says Venkat.
Getting quality people, training the talent, ensuring best practices norms are followed, adapting to meet the needs of the clients and delivering quick, quality service, has been quite a challenge for the company. Navigating these challenges and delivering results has also been quite exciting, say the founders.