Virtual CFO Services with Corpbiz
Virtual CFOs have made it possible for small businesses to get help that they couldn't have afforded before. Virtual CFOs have made it possible for small businesses to hire an experienced accountant at a price they can afford. Even though the CFO's duties vary from company to company, on the other hand, every company that hires a Virtual CFO usually gets the following services:
VCFO often works better for businesses that can't afford to hire their own CFO. Organisations deal with many difficulties on a daily level in terms of financial factors, growth, budgeting as well as management. To curb those challenges, a need appears to be to select a Virtual CFO who can mainly be responsible for handling activities like financial reporting, record keeping, and business financial risks. The presence of a virtual CFO helps in meeting those difficulties successfully by providing financial and professional aid, analysis, and support to management.
What Is Soil Testing?
A Chief Financial Officer (CFO) is the top manager of a company who is responsible for the company's funds, handling financial risk, making financial reports, strategic decision-makers, coaching/Mentoring startups, and MSMEs and he is directly answerable to an organisation's stakeholders. A virtual CFO may offer to help you with advanced strategies to make your company more profitable and achieve business goals.
Companies such as startups, Micro, Small & Medium companies (MSME), and small and medium-sized companies (SMEs) may struggle to hire a virtual CFO due to a lack of resources. Therefore, these businesses use external CFO services to improve their performance. To make the process easy and cheap, Virtual CFO Services helps businesses with complete answers to complicated business problems.
Growing Face of Accounting for Small Businesses
Accounting is facing some major changes in the process of its growth; the number of firms has grown greatly who are fighting with each other. Small private companies currently have so much choice that standard services like tax preparation, budgeting, and compliance are turning out to be commoditised. The market value of these services has been impacted because there isn't much of a distinction in this crowded industry.
Accounting is being replaced by cloud technology, which is also reducing the fundamental cost of accounting services. Businesses that manage their finance and accounting departments with finesse using cloud technology are more productive and efficient.
What are the Qualities of our Virtual CFO over Traditional CFO?
These are the main qualities of our virtual CFO:
Experts Professional
We have trained & qualified CAs, CPAs, and Master's in business from a top educational institution.
Vast Experience
Our experts come with a decade of industry experience in accounting & bookkeeping outsourcing services, and deliver best-in-class service.
Vision and Foresight
Our Virtual CFO predicts the possibilities in the future and then provides strategy suggestions to improve the result.
Big Picture Thinking approach
Our expert offers suggestions for price, the best investment mix, the effect of the cost of funds, and the end goal in mind.
Results-Oriented Mindset
Our Virtual CFOs, with a result-oriented approach, focus on getting what needs to get done.
Knowledge Expert in The Field
Our Virtual CFOs are pros in what they do and can help you achieve a better running finance department.
Adaptability
Our Virtual CFO provides the best way to conquer a goal even during external or internal environmental change.
Leadership
Our Virtual CFO is backed by our team of finance & accounting experts and lead your business with our huge financial resources..
What is the need for hiring a Virtual CFO in Indian Business?
If a business does not have an in-house finance staff, it can transfer the finance role to another company. Moreover, the company can use virtual CFO services. Remote or through an external expert, virtual CFO services can be given. Businesses must vary according to the changing conditions in the world of technology. Some companies, such as startups and small and medium-sized businesses (SMEs), may lack the means to hire an in-house CFO. Therefore, these companies use virtual CFO services.
The job of a traditional CFO has become more tough as a result of digitisation. In this competitive climate, a CFO should be able to perform financial, management, and business tasks.
What is the Role of a CFO?
The virtual CFO plays the following roles:
Financial Projections
With the help of Virtual CFO Service, you will get the value of your financial estimates through income statements and financial accounts.
Cash Flow Projections
An income forecast will be done so as to ensure the cash stream meets the obligation.
Manage Cash Flow
A correct and planned control of cash flow is essential to understanding cash usage.
Budgeting
It is important to set a budget in advance and then partake in its reviewing process periodically to keep track of the progress.
Debtor and Creditor Management
Consumer and creditor management plays a crucial part in lessening credit risk.
Setting up an Accounting System
Analysing the current financial system and suggesting any change.
Benefits of Virtual CFO Services
Helps in Maintaining Accounting Records
Virtual CFO will help you in keeping accounting records according to accounting standards. As we know financial accounts of any business are made following the rules of the accounting standards as stated by the government body.
Budgeting
Effective and thoughtful planning ensures proper cash flow in the business. Budgeting helps in examining the cash requirement by balancing the income and the cost.
Financial Analysis
A virtual CFO also helps in the company's decision-making process, which eventually leads to the growth of the business. It studies the funds and operations of the company by discovering key operation factors.
Improve Profitability
Virtual CFO services protect your resources from any sort of loss. A properly planned and performed strategy improves the general output of the business.
Cashflow Projections
Cash flow projections give a proper view of the cash situation of the company. This helps in making a plan which will achieve the cash requirement of the company to meet the requirements.
Financial Projections
A virtual CFO also helps in the company's decision-making process, which eventually leads to the growth of the business. It studies the funds and operations of the company by discovering key operation factors.
Key Performance Indicators
Key performance indicators keep an eye on the current market and financial state of the business and, hence, predict the future. Every business has multiple aspects, such as production, sales, cash, marketing, cash payments and inventory amounts, which show the KPIs. The virtual CFO frequently track and study such factors.
Growth Plan as per business needs
A virtual CFO works with the company's financials, which helps the business grow. The virtual CFO makes a proper growth plan. It is needed to make a growth plan to know when cash is required in the business.
Organisational Structure
Virtual CFO services have the power to make any changes in the organisational structure of the company as and when needed for the growth of the business.
Risk Assessment
Virtual CFO detects risks and makes choices to curb the amount of risk that may impact the business over the long haul. This is done to lessen the risks and improve possibilities.
Important Virtual CFO Services for Every Business
Here are the important virtual CFO services for which the financing is required:
Financial Advisory
Virtual CFO gives monetary direction based on the need. Proper financial planning opens the way for the growth of the business. With this, top management can focus on the important zones without considering the financial problems.
Break Even Analysis
Under break-even analysis, absolute cost (fixed + variable) is compared with the income that will decide a point where business neither makes gain nor loss. Virtual CFO will help in inferring break-even analysis by which the company will have the choice to control its costs.
Accounting Functions of the Organization
Accounting services are a major part of the union. It is a mode which helps in the review of the association's monetary bookkeeping health check. Here, an accounting health check means a total review of the financial and accounting part of the group. For this, a famous expert in administration is needed to set up extensive information connecting with bookkeeping practices, such as planning information and other accounting policies.
Planning different policies and performing key thoughts are needed to have a well-defined accounting health check.
This process involves reviewing and assessing valid recommendations regarding existing turnover, benefits, corporate goals, operations and bookkeeping frameworks, and critical performance indicators. The accounting health check also takes future development, tax expertise, and firm structure into consideration.
Cash Flow Forecasting
The other basic help of the virtual CFO is to predict cash flows. Organisations must have a better understanding of the cash situation to make the right choice. You more likely than not made proper cash plans to meet the future obligations. It helps in making choices with respect to what amount of funds is required.
Cost Management
Cost management is a process under which a virtual CFO makes a valid wish to limit the cost of the company. Virtual CFO helps in choosing the job efficiency. A changeable cost is broken down by the virtual CFO to control it.
Audit Support
Audit help is given by the virtual CFO by answering questions asked by the inspectors.
Debt Planning
A virtual CFO makes legal debt planning with the aim of accomplishing the ideal goal. Proper debt planning is important to control the responsibility.
Budgeting
Virtual CFO offices contain budgets. Budgeting is done with the purpose of keeping track of all the tasks the business is performing. Spending should be studied on a month-to-month or yearly level so changes can be made in a way that meets the end goal.
Corporate Governance
Corporate governance includes all the rules and laws which a company follows. These rules help in finding a balance between the interests of partners, owners, management and clients.
Compliances of the Various Acts Applicable
Under this, a complete plan will be made by the virtual CFO according to the terms of the Companies Act 2013, FEMA, Income Tax Act 1961, Contract Act, IPR laws and so on.
MIS Reporting
The virtual CFO is responsible for giving quick and exact data with respect to the financial health of the company in MIS.
Year-End Accounts Closure and Filing
The virtual CFO ensures that the writing and yearly filing of financial records are on schedule. It additionally promises the Documentwork for the income tax return and GST return filing.
Internal Control
A legitimate direction in regard to the development of the organisations by way of an improved interior control framework helps in proceeding with the unwavering quality of the association. A proper and precise bookkeeping record, all-around educated money-related choices, and monetary details are needed as a viable piece of inner control framework. The CFO of the company helps evaluate and perform these previously mentioned forms.
Accounting Policies and Procedures
For a far-reaching structure of inner control in the association, a very much-planned and properly kept system of accounting policies helps in the upgrade of responsibility and consistency in the organisation.
What is the Process of Virtual CFO Service?
Virtual CFOs offer a variety of services; they are expected to provide more services since they often work with small firms and startups. A CFO's services typically align with the financial pyramid of demands. At the most basic level, a virtual CFO is supposed to serve as the client's bookkeeper, ensuring the correctness of the account books and analysing financial information from accounting data. They will be in charge of implementing or managing the reporting procedure.
Functions OF Virtual CFO
Debt Management: A virtual CFO establishes a real-world obligation arrangement with the goal of attaining the best outcome. To manage the commitment, adequate obligation planning is essential.
Internal Regulation: A genuine impact on the expansion of associations via a smooth internal control structure aids in maintaining the organisation's immovable character. To be viable, a suitable and precise accounting record, all-around taught cash-related judgments, and financial products must be included as part of the internal control system. The association's CFO supports evaluating and implementing the previously mentioned structures.
Financial Evaluation: Income projection is another key function that the virtual CFO provides. To make the right decisions, firms must first have a deeper understanding of their financial situations.
Forecasting Income: The virtual CFO can anticipate profits, which is a useful function. To make the best decisions, firms must first have a deeper understanding of their financial realities.
Governance in business: Corporate administration includes all of the norms and criteria that a firm follows. These criteria help to strike a balance between the emotions of partners, investors, executives, and consumers.
Accounting policies and procedures: A well-organised and up-to-date collection of bookkeeping methods assists in the organisation's duty and consistency makeover. Bookkeeping methods and procedures help to organise and apply highly specialised bookkeeping for executives in the company.
Calculate the Break-Even Point: Analysis, the final cost (fixed + variable) varies from the pay, which will determine a point at which the firm does not profit or lose money. The Virtual CFO will help to encourage equitable initial investment examination, enabling the firm to manage its costs.
Management Information System Reporting: The virtual CFO's responsibility in MIS reports is to provide accessible and reliable information on the organisation's financial health.
Financial Consultation:- Depending on the circumstances, a virtual CFO may provide financial guidance. Proper budget preparation positions the company for development. This enables senior organisations to concentrate on the most essential areas without worrying about cost constraints.
Audit Assistance: The virtual CFO conducts a comprehensive evaluation by addressing inspectors' inquiries.
Virtual CFO Service For Startups
The notion of a virtual CFO is unique and revolutionary. It allows small enterprises or startups to get CFO help that they could not previously afford. When a small firm engages a Virtual CFO, it has access to a seasoned financial expert for a fraction of the cost of a full-time CFO.
To manage their growth, firms will initially engage bookkeepers and accountants. However, businesses need more effective financial strategy and management at some point, this is where a chief financial officer comes in. Full-time CFOs, on the other hand, may be pricey, resulting in the virtual CFO (VCFO).
Policies and Procedures of Virtual CFO
Entrepreneurs are obsessed with turning their ideas into reality but often lack the skills and time to implement business procedures. An experienced virtual CFO can assist in establishing and implementing the policies and procedures necessary to properly manage the business.
Payroll Management: A virtual CFO can help with developing payroll processes for specific business practices, processing reimbursements, meeting statutory compliances such as Employee State Insurance, Provident Fund, Labour Welfare Fund, TDS processing, and employee enrolment and exit procedures.
Receivables and Payables Management: A virtual CFO may design procedures to successfully manage a client's receivables and payables, as well as oversee the process's timely follow-up and payment reconciliation.
Cash management is essential for the success of any organisation. An effective, regular, and rapid cash cycle is essential for the successful running of any firm.
Monthly or per-visit pricing is common for these services. Companies of all sizes and sectors employ virtual CFO services since a CFO can address many of the organisation's difficulties.
How Corpbiz will help you in Virtual CFO Services?
We have developed a wide range of solutions to fulfil the demands of our customers. Our service level choices allow you to choose the degree of help you need, or if you are uncertain, you may use our 1-on-1 expert calls to obtain the answers you need. The simplest virtual CFO approach is to use our CFO services, which are used by many firms. We have the greatest team of seasoned industry experts who have combined expertise in providing CFO services to customers from diverse sectors.
Frequently Asked Questions
Outsourced CFO services often involve financial reporting and analysis, budgeting and forecasting, cash flow management, tax planning, compliance, and strategic planning. They may also provide financial modelling, accounting software, and bookkeeping services.
There are various compelling reasons to hire a virtual CFO, including cost-effectiveness, scalability, risk reduction, improved financial planning, objective viewpoint, time savings, access to sophisticated technologies, compliance assurance, and strategic growth planning.
Virtual CFOs provide the greatest financial management for startups. They are cost-effective, so any startup may afford them. They make your firm expand and thrive in the market among the competition.
After a VCFO has determined a route to success, a virtual CFO will handle bank connections, weekly financial meetings, budgeting, cash flow management, financial statements, business forecasts, companywide KPIs, financial strategy, financial reporting, and other activities.
A virtual CFO works remotely and is often employed part-time or as required, giving smaller organisations more flexibility. In contrast, a typical CFO is a full-time, in-house executive in charge of the company's financial strategy and management.
Interim CFOs are finance specialists who join a firm, generally full-time, for a period of one to three months, mainly to help navigate through a financial crisis or an operational change, get ready for a sale, or fill in for a departing CFO while they find a replacement.
You will require help of a Virtual CFO who can guide you through the crucial planning process and identify specific, significant goals that must be met if you want to grow your company and make the journey easier
Your request will be assigned to one of our experts, such as CA or CS, who will organise a regular meeting with you. All you have to do is provide us with current information so we can work efficiently. You will get a unique request number that will allow you to track the task's progress. You must respond to our problems on a frequent basis in order to achieve this.
The length of the process will be determined entirely by the needs of the client.
