During times of crisis, companies must be more cautious in their decision making more than ever. Juraj Jurášek, co-founder of Capila, explains how modern technology has assisted the company’s financial management.
Corporate finance and innovation. How did this combination come to pass?
Organically, based on personal experience. As the founders of Capila, we have extensive experience in the field of management finance. We have first-hand knowledge that the traditional approach based on outdated systems is no longer sufficient. This field is undeniably in dire need of innovation.
These systems have been used for decades. Why do we need to update them now?
The old systems relied on key financial metrics being recorded in excel spreadsheets or on paper. We came across businesses that were rapidly expanding, but their data was a train wreck. What was particularly alarming was that they were utilised for ballpark strategic decision making rather than for making informed calls. Today, it is critical that key decisions are based on automated and accurate data. A number of companies are beginning to feel the growing anxiety of a worldwide recession. They often review the numbers and realize that something is not adding up.
Chief executives should not get perplexed by the numbers that reflect the achievements of the company. They have more time to grow and expand their business when they know their data are reliable.
How can Capila provide this reliable data?
We integrate accounting and invoicing systems, as well as numerous project management tools, to our software, allowing us to daily provide our clients with up-to-date and reliable data at the click of a button. The data itself must be readable by the client, therefore we explain its meaning and its real-world ramifications. This is when our role as a “virtual CFO” kicks in.
Is it feasible for you to substitute the function of the company’s CFO?
We’re talking about small and medium-sized businesses here, where this role has frequently been performed by the founders themselves. We will provide them with a professionally competent CFO with extensive experience in a variety of business sectors. Our client also gets the benefit of having an entire team of such financial specialists at their disposal, but the communication is conveniently funnelled through a single person.
What is the role of this person as a team member?
The virtual CFO becomes an integral member of the management team. He provides strategic consulting, assists with business decisions, and aids in the creation of budgets, goals, and estimates. He also participates in valuations, due diligence, and sales plan development. The thorough financial and legal consultative services we conduct in collaboration with the Sparring legal team is an extension of this. We’ve been working together for a long time and know each other well, so our work is more efficient, faster, and ultimately more cost effective than if the client had ordered these services separately.
You are attempting to introduce innovative ideas into a traditional industry. Do traditional financiers have reservations about you?
As fintech conquers the world, the scepticism of traditional financiers is receding. We can see that the major financial institutions are competing to see who can implement the most innovations. This moves the whole industry forward. Our advantage is that our perspective on the finance industry is fresh and modern, based on experience, but unconstrained by the rigorous norms of the financial world. Finance, in our opinion, should be simple to understand and transparent.
All indications point to the world entering an economic crisis. What effect do you believe this will have on your services?
The need to thoroughly understand your business and its exact data will only grow as the crisis unfolds. Those who are familiar with them and can predict events based on them will have an advantage over others. We are a new generation of entrepreneurs, ready to operate creatively and internationally, and to smash the myths rooted in the world of finance. One example of this is that the world and its numbers are inherently complex. We know that this does not have to be the case, and we feel that it is this mindset that will help us educate businesses on how to get through this difficult phase and move forward.
Juraj Jurášek is a business executive with technology, finance, and marketing background. He has been involved in business development for Central and Eastern Europe at a company that specialises in customer data automation and personalised marketing communications. He also helped with product development for two Central European online banks. His extracurricular activities include e-commerce education, focusing on the importance of working with customer and financial data in online business.
This content was created in collaboration with the client.