Have you ever heard of Virtual CFO services? Let us make you understand who is a Virtual CFO and what are Virtual CFO Services.

In today’s evolving market trends, there are various business opportunities available to different age groups, that is from a person’s adolescence to golden years. Most of them would prefer to be their own boss and wish to have a working environment on their terms. A person is willing to explore his talent or creativity or adventure in this developing country as numerous business opportunities are awaiting here.

Because of this entrepreneurial zeal in a person, there are a number of companies being established daily in India. But the job is not done once the company is put up. There are various factors to be looked into for prosperity of the company. One such factor and the most critical of all, would be managing of finances in the company.

Generally, in an established entity finances are headed by a CFO or a Finance controller. He would play a major role in managing multiple functions such as accounting, treasury, audit, financial planning and analysis of business finances. These functions are equally essential for start-ups, Mid-corporates and growing companies too. However, initially a full-time CFO may not be necessary since their services would be a little pricey for a start-up.

To avoid such high-priced services but equally obtain such services at affordable prices, the start-ups, Mid-corporates or growing companies can appoint a Virtual CFO.

Who is a Virtual CFO?

• A virtual CFO is also a qualified professional working with a team of persons to render services to persons whenever required.

• The main area of focus for providing virtual CFO services would be start-ups, Mid-corporates & growing companies since established companies would require an in-house CFO where as a start-up may not require continuous assistance at the initial level.

The following are some of the areas where a virtual CFO Services are essential:

Advisory Services:

• In the primitive stage advisory plays a crucial role since, if you do not gather proper advices, you would lose on proper functioning of business. If you hire a virtual CFO, he would provide services such as, consultation about the structuring and compliances needed for setting up of business.

• A virtual CFO would structure a business plan with the track record and the potential which would help the management to capitalise the resources and project where they would stand in an year’s time through budget preparation. This business plan can be used by the management where ever there is a need to project their company.

Accounting and Payroll

Managing of numbers is difficult for any kind of organisation. Often a company creates losses when these numbers are not organised or maintained properly. Hence a virtual CFO would provide with a proper strategy for maintaining books on incomes, expenses, assets and liabilities of the company. He also establishes a framework on accounting and payroll of the company. By taking up virtual CFO services, company’s internal framework is designed accurately.

Raising of Funds:

• A virtual CFO would give guidance primarily on obtaining investment for the setting up or growth of the business in the later stages. Hence, he would help in obtaining the seed capital required, form new-relationships and derive measurable value for start-ups.

• Another major problem that start-ups or MSMEs are facing is fund raising for the company. A virtual CFO could solve this problem by providing suitable presentations to the bankers or investors representing the company. As the personnel may not have much knowledge on dealing with numbers and projections, by hiring virtual CFO services this job is best done by him.

• Valuation of the business is essential for raising of funds. Hence a virtual CFO would present to the investors, the company’s position in the coming few years with detailed projections and also valuation of the company.

Controls and Compliances:

• Implementation of proper internal controls would help the company in functioning in an organized manner. Such internal controls and implementation of ERP in a company is a major role that a virtual CFOs play.

• Indian corporates are governed by many statutes. Every Corporate in India is bound by these statutes. It is not easy for a common man to understand all the provisions stated in these acts. Hence a professional like a CFO would be well versed in these subjects. Hence, he would take care of all the compliances to be done by a company on a timely basis. As a virtual CFO is also a qualified professional like a full-time CFO, such compliance services are also provided by him.

Reporting to Key Management Personnel:

• A start-up’s virtual CFO would ensure to the key management personnel about the current status of their company, what they will be needing to see a hike in the position of the company and also present the ways to see such growth in the company. A complete road-map would be provided to the management stating these factors.

• Virtual CFO services can be hired by the management to ensure timely reporting of the company’s performance status.

Therefore, every company needs a CFO. But when you are looking for a part time CFO but want the role of a full time CFO you can opt for virtual CFO services. The above mentioned are few of jobs that a virtual CFO performs. His responsibilities are much wider in the practical scenario.

How do you like the idea of a Virtual CFO service? Communicate to us, as your company may need Virtual CFO services too.