A business, especially a startup does not need the services of full time CFO. Here the concept of Virtual CFO comes into picture.
An experienced firm of CA's /MBA's acts as a Virtual CFO for many organizations, and divides its time between them. What does not get divided is its expertise. A virtual CFO’s expertise grows at a compounding rate, as they are working for a large variety of organizations.
So what does a Virtual CFO takes care of?
Cash management
Financial Investments - having best return of Idle Money.
Insurances to be taken (General, Health, Life-KMP)
Budgeting
Financial Reporting – preparation and review of your business’s Balance Sheet, Profit & Loss and Cash Flow Statements
Tax Compliance and planning – both Income Tax and GST
Other Finance, Advisory and compliances work.
As mentioned earlier, a startup does not need a CFO’s services everyday, so why to burn cash paying an in-house CFO a bulky salary. There are a lot of organizations (including us) that supplies the same services at a fraction of cost of an in-house CFO.
A virtual CFO’s work is flexible, and depends on the needs of a business. It helps to streamline your cash flows. Due to its vast expertise, a virtual CFO can helps with financial strategy and even help the management with general business knowledge and in taking key operating decisions.
Growing businesses should ideally transition from fully owner managed, to having a virtual CFO. A virtual CFO adds a lot of value to a growing business that needs professional management of Finances and Accounts.
We hope the above blog was helpful in enhancing your knowledge on the matter. In case of any queries feel free to get in touch with our team of experts.
Quote of the day:
“I am not a product of my circumstances. I am a product of my decisions.“
- Stephen Covey
Regards
CA Umang Jain
+ 91-96323-32850
umang@caumang.com
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