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What is Virtual CFO? and Why should you hire a Virtual CFO?

What is a Virtual CFO?

Virtual CFO (or “vCFO” for short) stands for Virtual Chief Financial Officer. A Virtual CFO is an outsourced service provider offering high skill assistance in financial requirements of an organization, just like a chief financial officer does for large organizations.

Why do you need a Virtual CFO?

The mushrooming of the startup ecosystem has generated specialized service providers which fit the requirement of startups. Virtual CFO is one such specialized service provider. Startups, and small medium enterprises, normally do not have the resources to hire a full-time CFO.There have been studies claiming that among the top issues faced by Indian startup CEOs are hiring financial and legal experts. Startups like to keep fixed costs low and having outsourced service provider provides them the flexibility of choosing services as and when required. A Virtual CFO provides strategic, value add services to a business which cannot be provided by an accountant

Why should you hire a Virtual CFO?

Services offered by a Virtual CFO

  • The primary role of a Chief Financial Officer in any organization is to oversee the financial planning, maintain and report on the financial activities and manage financial risk of the business.
  • A virtual CFO provides the same services but since the common clientele of a Virtual CFO are small businesses and startups, there are certain more services that are expected of them.
  • Virtual CFO is expected to be the bookkeeper of the client and has to take responsibility for the accuracy of the account books, day to day compliances and follow ups, employees, vendor and customer’s commercial relations and interpret the financial information from the accounting data to the client.
  • They are also responsible for suggesting measures to control expenditure and acquire capital at low cost.

The Practice

​​Small companies may need a controller on a weekly or fortnightly basis. Our Virtual CFO services also offer one-time/ periodical help with strategic transactions, financial processes, business plans and budgeting. Our tailor-made services and the service charges are depend upon business needs and thus vary from client to client  This practice is gaining ground in India, with a thriving start-up and SME culture in the country. This sector has discovered new virtual CFO companies in the last three to four years, mainly because the start-ups want to focus in their core areas, leaving the technical job to technical people

Advantages for Small Businesses​

There was widespread agreement that the following overarching trends are occurring in the industry and have been for some time:

  • compliance work is commoditizing
  • increased competition
  • increased fee compression
  • technology is helping to automate basic functions

Having access to a virtual CFO can be a big benefit for a small business. Most small businesses can’t afford an experienced, knowledgeable CFO on a full-time basis and may never consider hiring one.

That’s a problem, because as many as 8 out of 10 businesses fail within two years. Reasons include failure to set themselves apart from the competition, and an inability find a profitable business model. With an accounting professional acting as their virtual CFO, they could keep their financial goals and realities clearly.

How we do it for you?

Our CFO services are specific business based and  is execution focused. We manage, oversee & execute the complete finance, accounts, compliance and reporting  function and provide day-to-day oversight, mentoring and support to the client’s team and management.

Our team and resources  have  proven expertise and capabilities in the services in Accounting, Compliances and Financial domain given below

  • Corporate Planning & Structure
    Considering various factors such as Promoters background, business idea, resources and funds requirements, tax and compliances costs, future expansion horizon etc.
  • Business Plan Assistance
    Based on business services / product and management research and expectations we develop a detailed business plans considering all challenges and expectations with various possibilities.
  • Management insights for Forecasting
    We assists management in estimating budgets for initial outlays, working capital expenses, revenue forecasts, sensitivity analysis for forecasting for changing market conditions
  • Developing Process and Controls
    Based on the business size and requirements our team develop and implements financial and accounting process and controls with proper documentations. These process and controls are periodical reviewed based on changing business requirements and technological and other changes..
  • Consulting and Legal Help
    As per business requirements our team provides consulting and advisory for various matters such as capital raising, FDI, taxation and compliances, employee hiring and payroll. We also assist management and legal team in drafting legal agreements.
  • Fund Utilization & Working Capital Requirement
    Based on the forecasting and estimated business operations periodical estimation are prepared by our team with detailed cash flows and working capital statements. Based on these working our teams advised and controls cash flow on short term to medium term basis. Our strong MIS reporting and working culture with management assist client to implementing best practices on improving cash flow and working capital management.
  • Financial MIS & Analysis
    Our core financial advisors work closely with our MIS team and client management team to providing and reviewing regular financial performance reports and analysis on the cost and profitability for various product lines and business units to support decision making.
  • Fund Management and Investor Relationship
    We closely work with client investor providers of debts and equity. Prepare all MIS and reports as required by the investors and support client management for handling investors.
  • Transaction Advisory
    Our team support management for various transaction structuring such as IPO, Merger, takeover and investor exit policies. As a accounting and financial partners we do provide support and handle the due diligence process of the business.
  • Accounting and Compliances
    Our accounting team take the day to day accounting and documentation. We have accounting resources who can manage and control complete accounting functions. Our accounting process are automated under control of our internal audit team. Our compliance team is independently work with accounting team to take care of all regulatory compliances.
  • Taxation
    Our compliances team do work with accounting team to take care of all taxation processs and compliances from finalisation of tax liabilities to filing of tax returns ie. (Excise, Service Tax, Sales Tax, TDS, Corporate Tax) on a timely basis; Liasoning with the tax authorities; Advising client on taxation best practices.
  • Secretarial
    Handling all compliances w.r.t. secretarial – Company Incorporation; ROC filings; Board Meeting compliances; Liaisoning with authorities; etc.
  • Audit and Statutory Reporting
    Our team is well equip with to handle all audit query and process as to coordinate with auditors to timely closing of annual audit and filling of financial  statements. Our Secretarial team work with our account team for timely reporting  to Board of Directors for statutory compliances and providing financial statements as per the relevant accounting standards (Indian GAAP/ US GAAP/ IFRS.

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