{"id":30811,"date":"2021-05-21T14:56:48","date_gmt":"2021-05-21T09:26:48","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=30811"},"modified":"2021-05-21T14:56:50","modified_gmt":"2021-05-21T09:26:50","slug":"vcfo-services-can-help-msmes-to-operate-better-than-ever","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/vcfo-services-can-help-msmes-to-operate-better-than-ever\/","title":{"rendered":"How VCFO Services can Help MSMEs to Operate Better than Ever?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">MSMEs are the mainstay of the Indian economy\nowing to their massive contribution to the nation&#8217;s socio-economic development.\nThey have garnered increased recognition, &amp; many fiscal &amp; economic\nreforms have been launched for this sector.<\/p>\n\n\n\n<p><a href=\"https:\/\/corpbiz.io\/msme-registration\"><strong>MSMEs<\/strong><\/a> lacks better management of funds and thus, seeks an improved supervisory of the same. And this where VCFO services (Virtual Chief Financial Officer) come into the picture. In this write-up, we will talk about VCFO services in details.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/vcfo-services-can-help-msmes-to-operate-better-than-ever\/#Who_is_a_CFO\" >Who is a CFO?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/vcfo-services-can-help-msmes-to-operate-better-than-ever\/#Virtual_CFO_Services_for_MSMEs\" >Virtual CFO Services for MSMEs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/vcfo-services-can-help-msmes-to-operate-better-than-ever\/#How_can_VCFO_Services_help_MSMEs_Achieve_Growth\" >How can VCFO Services help MSMEs Achieve Growth?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/vcfo-services-can-help-msmes-to-operate-better-than-ever\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_is_a_CFO\"><\/span>Who is a CFO?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>CFO or Chief Financial Officer predominately\nresponsible for overseeing the financial aspects of the organization. Such\nindividuals can take strategic decisions regarding financial risk, taxation,\nand compliances so that the organization can stay afloat and operates\nseamlessly.<\/p>\n\n\n\n<p>Apart from that, CFO also provides periodic financial reporting based on various aspect. The presence of CFOs ensures better management and utilization of funds.&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/aeo-package-for-msmes\/\">AEO Package for MSMEs: All you need to know<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Virtual_CFO_Services_for_MSMEs\"><\/span>Virtual CFO Services for MSMEs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An in-house CFO can help a firm achieves fiscal\nstability by taking informed decisions. The cost of appointing such individuals\nis somewhat on the higher side, making them less preferable for most MSMEs in\nthis country. However, it seems that the concept of virtual CFO has solved that\nproblem to a certain degree.<\/p>\n\n\n\n<p>As the name suggests, Virtual CFO is somewhat\nidentical to remote services. Such individuals do not necessarily provide\non-site services to the client, but they are available when you need them most.\nVCFO services are widely-recognized for their vast knowledge and pool of\nexpertise that assists in decision-making. Also, their charges are not as\nstringent as compared to hiring the real CFO.<\/p>\n\n\n\n<p>Covid-19 pandemic has changed the way firm\nhandles their managerial tasks. Amid unprecedented economic slowdown, MSMEs are\nin desperate need of experienced personals who can seamlessly handle their\nfinancial aspect and let them focus on what they do best. The compromised\neconomic condition has led to the growth of VCFO services in India.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_can_VCFO_Services_help_MSMEs_Achieve_Growth\"><\/span>How can VCFO Services help MSMEs Achieve Growth?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Good VCFO services can oversee different facets of an organization, including;&nbsp;&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/05\/How-can-VCFO-Services-help-MSMEs-Achieve-Growth.png\" alt=\"MSMEs Achieve Growth\" class=\"wp-image-30845\" width=\"518\" height=\"519\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/05\/How-can-VCFO-Services-help-MSMEs-Achieve-Growth.png 997w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/05\/How-can-VCFO-Services-help-MSMEs-Achieve-Growth-150x150.png 150w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/05\/How-can-VCFO-Services-help-MSMEs-Achieve-Growth-300x300.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/05\/How-can-VCFO-Services-help-MSMEs-Achieve-Growth-768x770.png 768w\" sizes=\"(max-width: 518px) 100vw, 518px\" \/><\/figure><\/div>\n\n\n\n<p>Let&#8217;s discuss each of these in detail<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Accounting and Bookkeeping<\/h3>\n\n\n\n<p>Having an error-less accounting system is a\ndaunting task for firms having a low workforce and budget. The manual handling\nof account requires unprecedented attention and frequent\ncross-referencing.&nbsp;<\/p>\n\n\n\n<p>Another difficulty that MSMEs usually encounter\nis to ensure conformity with prevailing tax laws and other legal requirements\nwhile handling accounting functions.&nbsp;<\/p>\n\n\n\n<p>Having the best VCFO services can ensure that no\nuntraced invalid data find its way to the accounting books. These services can\nprovide you with timely reporting so that you can make a legit and quick\ndecision.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Taxation part like Income Tax, GST, etc<\/h3>\n\n\n\n<p>Well, most MSMEs operators are unfamiliar with\nthe fact their decision-making could impact their taxes in one way or another.\nHere they misestimate &amp; end up paying massive taxes and penalties, which\neventually reduced their ROI.&nbsp;<\/p>\n\n\n\n<p>The VCFO services have expertise in such areas\nand help firms timely cater to various tax requirements, including the\nreconciliation of 26 AS or GSTR 2A -3b in case of unexpected tax encounter.\nEffective planning regarding potential taxes and saving is also a forte of\nthese firms. They ensure that every information coming from the tax authorities\nare handle with utmost care.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Company law<\/h3>\n\n\n\n<p>The Virtual CFO can provide all advisory &amp;\ncompliances that revolve around company law.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Compliance<\/h3>\n\n\n\n<p>At present, there are stringent penal charges\nfor filing the invalid and untimely return. Ensuring conformity with basic\ncompliances is a necessity for registered entities in India. But, due to a shortage\nof skilled workforce, they fail to do so. By appointing a Virtual CFO, firms\ncan overcome such problems with ease.&nbsp;<\/p>\n\n\n\n<p>VCFO services never let you go off track in this regard by providing adequate assistance on setting up seamless coordination with prevailing compliances under various Acts like Income Tax Act, <em><strong>Companies Act<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>, etc.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Preparation of financial statements and management of\nrecords<\/h3>\n\n\n\n<p>The virtual CFO can help you resolve potential\ndiscrepancies with financial statements and records management via effective\nmanagement. They have expertise in preparing a P&amp;L statement, cash flow\nstatement, and balance sheet with unparalleled accuracy.&nbsp;<\/p>\n\n\n\n<p>They can alter the frequency relating to the\npreparation and evaluation of the statement as per the management demand.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Banking services<\/h3>\n\n\n\n<p>A business has highs and lows in terms of sales\nand cash flow, but convincing statements allow firms to get a loan from banks\neven at a time of a downturn. One can bank on their virtual CFO for such\nbanking services.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Cash flow forecasting and budgeting<\/h3>\n\n\n\n<p>A thorough understanding of the cash position\nfor a target period is vital to make an informed decision. The fund forecasting\nservices of the virtual CFO aids the firm to ascertain how much surplus fund is\nrequired for a specific project and arrange funds for timely execution.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Miscellaneous services<\/h3>\n\n\n\n<p>The virtual CFO also renders a wide array of\nmiscellaneous services such as break-even analysis, audit report, cost\nmanagement, MIS reporting, &amp; internal controls.&nbsp;<\/p>\n\n\n\n<p>It is evident from the facts above that VCFO is\nnot an option anymore, at least for someone who seeks rapid growth through\neffective management. Management under the influence of Virtual CFO is more\nlikely to take accurate and well-informed decisions than those who lack such\nservices.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MSMEs are widely known as the smaller establishment which seeks constant accessibility of funds and skilled workforce to meet their short and long term objectives. Seamless management is what they need to cater to liquidity and management crisis effectively. Hiring VCFO services is the best way to keep critical anomalies at bay and ensures that businesses stay afloat even in the most challenging scenario where the likelihood of survival is relatively low.&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/msme-udyam-registration-portal-everything-you-need-to-know\/\">MSME Udyam Registration Portal: Everything you Need to Know<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MSMEs are the mainstay of the Indian economy owing to their massive contribution to the nation&#8217;s socio-economic development. They have garnered increased recognition, &amp; many fiscal &amp; economic reforms have been launched for this sector. MSMEs lacks better management of funds and thus, seeks an improved supervisory of the same. And this where VCFO services [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":30843,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[176],"tags":[1759],"acf":{"service_id":"71"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":3069,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/30811"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=30811"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/30811\/revisions"}],"predecessor-version":[{"id":30847,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/30811\/revisions\/30847"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/30843"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=30811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=30811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=30811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}