Overview of Virtual CFO
A CFO has gone beyond that of an officer in-charge of the financial affairs of a company, ranging from record-keeping to financial reporting and analysis.
Recently McKinsey Global Institute had indicated that the CFO’s role is rapidly evolving—expanding in scope, requiring new capabilities, and demanding greater collaboration with C-suite peers. We are living in a very uncertain, volatile time, and some of the findings reflect both the opportunity and the challenge of the role today. CFOs have influence on more functions and the magnitude of the change is both impressive and broad.
Organizations are now further grappling with the implications of digitalization in finance. Many enterprises are doing fundamental reviews of their business models, and finance leaders are exploring how to accelerate the pace of change. This survey suggests there are more digital transformations on the horizon where CFOs can play a radically different role. Additionally, ESG (environmental, social, and corporate governance) has become an important topic for investors, and CFOs are excited about what this could mean for their role beyond reporting.
Need for VCFO
Start- ups and small entities normally do not have the resources to hire a full-time CFO, instead they like to keep fixed costs low and having outsourced service provider to provide them with the flexibility of choosing services as and when required.
Organizations in their drive to set up the business or expand the existing business pay lower attention to the financial angle more so the Management Information Systems (MIS) or the compliance aspects. This is where the need for a VCFO arises. We will help you build the finance team for the future and lay a strong foundation for future growth.
You will now be able to get the information required for your decision-making at a single shot. It doesn’t stop with a normal MIS and accounting alone. Yes! We are there to give you professional advice too, help you with your budget, prepare a business plan etc. You as Entrepreneurs require an experienced sounding professional on board. We are there to provide it.
With the knowledge and industry expertise, our VCFO service will help in achieving the vision of your organization. We provide services to suit your business needs and requirements. We practice Build Operate and Transfer (BOT) model to enable you to use our team of skilled professionals. Once you have settled in your business from the start-up stage, we will help you to procure additional funding too, be it a simple bank loan or a VC Funding we truly become your strategic partner for growth.
Functions of VCFO:
- In relation to accounts
- Analysis and Review of book-keeping records, financial statements.
- Monitoring the Financial Position of the entity.
- Receivables and Payables Management.
- Payroll Management.
- Analysis of Break-Even Point
- Drafting policies and procedures for accounting, and much more.
2. In relation to Compliance, Planning and Strategies
- Compliance Management.
- Credit Monitoring.
- Strategic Financial Management and Optimal decision making.
- VCFO services include high-level financial strategy, system analysis, and design, and operational optimization.
- Review of Management Information System (MIS) Reports and provides advise/ recommendations for improvements.
- Developing growth strategy, structure in hierarchy, etc.
3. In relation to Innovation, Business development and Management
- Introducing innovative processes in finance function to increase the efficiency and reduce the time spent to complete a process
- Adapting businesses to significant changes in the environment particularly in places where digital and finance intersect.
- Special focus for Start-up entities.
- Human Resource Management.
- Discussion with Board members or Key Management Personnel.
Why use our VCFO services?
- Reduces direct interaction and saves time, cost and undue efforts.
- Involvement of qualified finance professionals
- Ensures better financial performance.
- Outstanding value and sectoral expertise.
- More flexibility.
- Increased Productivity.
- Establishes systems and process for growth.
- Adaptability to changes.
- Timely execution of tasks.
- Cost benefits through the eliminating need for full-time employment.
- Follow-up and clarifications made available post-assignment completion.
- Alongside provides technical, operational and administrative support.