The Chief Financial Officer, CFO is the top financial executive. CFO set all financial budget of a company, make policy, do financial planning, and track all cash flow. He coordinates all the financial services. CFO has a Good Knowledge of financial management, including financial planning, budgeting, and control to obtain the highest service advantage with a minimum cost impact. A CFO Maintain strong relationships with management team members so as to identify their needs and advise them on the financial implications of business activities. CFO in apparel is very important for financial activities and control.
A CFO always guides top management and business owner in proper investment, activities, government vat tax, and other financial issues. As finance is the first thing to control for any business, CFO has that role to play. So nowadays all the textile and apparel business industry and the group has a Chief Financial Officer.
Responsibilities of Chief Financial Officer (CFO) in the Apparel Industry
- Preparation of monthly management accounts i.e., profit and loss and other comprehensive income and financial position till the 10th of each month.
- Assist MD / Director in financial reporting and analysis.
- Good Knowledge of financial management, including financial planning, budgeting, and control to obtain the highest service advantage with a minimum cost impact.
- Upgrade and streamline the Account and Finance department to an acceptable RMG industry standard
- Establish credibility of the Accounts & Finance department by providing timely and accurate accounting and financial services to the entire Group
- Prepare and implement short, medium and long-term financial plans to achieve business goals
- Ensure efficient fund management portfolio for the company
- Implement a proper reporting system for controlling and monitoring all financial transactions
- Ensure all regulatory compliance relating to the company act, customs duty, income tax, /VAT, etc.
- Support production and marketing teams through product costing analysis and pricing
- Maintain strong relationships with management team members so as to identify their needs and advise them on the financial implications of business activities
- Guide management for establishing sound financial management practices
- Monitor monthly performance reporting. (Financial statements and KPIs)
- Facilitate yearly budgets in coordination with the executive of Finance & Accounts of all SBUs of the department.
- Perform data analysis and prepare decision support reports for top management.
- Signing and Authorization on the party payment bills and vouchers.
- Identify areas of inefficiency, and areas of potential cost reduction and take necessary initiatives to improve.
- Factory Performance Evaluation and efficiency analysis.
- Develop and update financial policies, procedures, and guidelines.
- Daily follow-up cash flow statement, and report on a monthly basis.
- Invoicing and Posting of revenue after verification.
- Incorporation of expenses – after approval of business managers.
- Maintaining fixed assets register.
- To prepare debtor’s and creditor’s aging analysis and reconcile the debtor’s & creditor’s balances on monthly basis with the customers/vendors.
- Settlement of Intercompany / Group balances.
- Bank dealings and monthly bank reconciliation statements. To ensure timely documentation with the bank.
- Dealing and coordinating with the external auditors for getting the financial statements audited including other incidental matters.
- Assuring that the business activities of the company are in conformity with predefined policies and procedures i.e. revenue, assets, capitalization, etc.
- To handle routine cash for day-to-day transactions.
- To prepare the project proposals for obtaining loans from different financial institutions.
- Project-wise working capital management, fund & loan management, and investment analysis.
- To prepare budget and forecasting activities.
- To follow up on existing bank interest/profit service charges etc as per the sanction letter.
- To ensure Tax compliance on payments e.g. Salaries & Vendors.
- To ensure sales Tax/VAT compliance and filing of returns accordingly.
- Dealing with Tax Consultant’s tax matters.
- To deal with corporate consultants for filing the minutes of AGM with relevant authorities.
- To have regular meetings with operations/sales on recovery and notify them as well as a head office for any irrecoverable debt or doubtful debts.
- To monitor all L/C-related transactions and prepare L/C landed costs for each L/C product.
- To ensure factory physical inventory every month and control any compliance issues on the factory end.
- To update factory operational processes, e.g. factory accounts, stores, work-in-process, finished goods, delivery systems, etc.
- To prepare and submission of monthly VAT Return to the tax authority.
- To monitor VAT law changes made through Finance Act every year and also monitor SROs and circulars issued by NBR and their impact analysis.
- To supervise the Purchase and Sales Account Register as per VAT and SD Act 2012.
- To advise the accounts payable team and vendors on the correctness of the VAT challan (Mushak 6.3 and other related documents) to comply with regulatory requirements.
- To prepare and issue VAT (Mushak 4.3, 6.1, 6.2, 6.3, 9.1etc.) to the appropriate vendors.
- Liaison with VAT authority on a regular basis.
- To maintain the VAT related to all work (VDS of supplier bill, collection of vat challan with certificate-6.6).
- Submit the VAT Return (Mushok – 9.1) on regular basis.
- Filling appeal to the commissioner of Taxes/VAT (Appeal), filling 2nd Appeal to the appellate commissioner of Taxes/VAT Appellate tribunal and also filling appeal to the high court through Legal Advisor.
- Any other assignment entrusted from time to time by the management
Qualifications and Skills of CFO
This is a high-level job. Education should be CA (Chartered Accountant) with a Master’s in accounting is preferable for this job. Generally, 8-9, 10, or more years of working experience as a CFO or senior financial managerial position in a good garment industry. Preferable -Chartered Accountant (CA) /ICMA Pass /qualified. Sound knowledge of Corporate Affairs, RMG, Financial Rules, Company Law, Fiscal Policy, VAT, Taxation Law, and ERP/SAP. Excellent communication skills both in the local language and English.
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