A Virtual CFO or virtual Chief Financial Officer is a seasoned financial expert that provides outsourced financial services for the planning and management of the business’s finances. A VCFO can be a single person or a team of financial experts that provide end-to-end financial services to a business whether it is a startup, MSME or a large corporate firm.
It is often noted that young businesses do not have the funds to hire a full-time financial officer or legal expert, who have the ability to guide the business in the right direction, lay down funding plans and steer the business towards growth.
What Does A Virtual CFO Do?
An experienced CFO has the knowledge and ability that goes beyond general financial accounting, finance management, bookkeeping, auditing, etc. A senior CFO partner helps business in a wide variety of ways that include:
- Fundraising and management
- MIS reporting and accounting
- Payroll accounting and management
- Financial compliance
- Forensic accounting, and much more.
Benefits Of Hiring A Virtual Chief Financial Officer
- Cost-Effective: A CFO partner is less expensive as compared to a full-time CFO. A business does not need to worry about retention, bonuses, employee appraisal, etc. in case of a virtual CFO. The cost of the VCFO is limited only to the requirements of the business.
- Team of financial experts: Hiring a virtual CFO means not only hiring an individual CFO partner but also a team of financial experts who can provide top-rated financial services through their collective expertise. Outsourcing financial services to a team of experts can help the business in getting its multiple financial requirements managed at the same time.
- Extensive Network: Experienced CFO professionals have years of experience and a wide network of institutions and personnel. A business that is still at a developing stage can benefit from such network and connections. This can help a business in raising funds, business expansion and referrals in the long haul.
- Timely Reporting: A virtual CFO partner can help the business in adopting a fixed format of business reports and bookkeeping. The VCFO can enable the business in adhering to the widely followed practices of client reporting, proposals, etc.
- Better Budget Management and Forecasting: A business needs the expertise of a financial expert in fund allocations, tracking of financial risks and cash forecasting. Without an experienced CFO, the business is left open to unforeseen financial risks and over budgeting.
- Technology mixed with Finances: A virtual CFO helps the business with its finances on the go through the use of technology, and provides its services in a more transparent and accountable manner.
- Teamwork and Coordination: Virtual CFO works concurrently with the existing employees of the business and provides constant support and advice in determining the best way of resource management. The VCFO not only helps the finances of the business but also business development, business growth, and employee management.
- Focus on business goals: A virtual CFO can help the business in formulating its key goals and also lay down the business plan to ensure that these goals are adhered to on a priority. The virtual CFO helps the business with laying down investment proposals, expansion of goods and services and evaluation of the best manner in which the business can expand to other territories.
Outsourced virtual CFO services provide a new multi-layer approach for the business to manage its finances in a more revolutionised and technology-steered way. A virtual CFO provides access to multidisciplinary experience that a business may not have otherwise and reduces the burden of business owners that helps them to focus better on their business operation.
LetsComply provides virtual CFO services with years of experience in financial, legal and taxation services as per the requirements of a business, be it a small and young startup or a large multi-national corporate. Call us at +91-9717070500 or send an email at firstname.lastname@example.org to know about our virtual CFO services.