Overview of Virtual CFO Services

With the introduction of the concept of Virtual CFO small businesses now receive support that they could not have afford previously. Virtual CFO has crafted a way for small businesses, following which they can get access to an experienced financial professional at an affordable cost. Though the services of CFO differ from firm to firm,

However, following services are common and often rendered to every firm who hire a Virtual CFO:

• It takes control of all the duties of a traditional CFO, but solely on a part-time basis
• Keeps an eye on the financial health of the business usually by adopting cloud technology
• Offer financial guidance and insight to the business on the matters related to finance.
• Give companies back-office functions which include managing account ledgers, depending on the client and their needs.

Often companies who cannot afford to have in-house CFO prefers to go with Virtual CFO. Organizations deal with many challenges on a daily basis in terms of financial aspects, growth, accounting as well as management. To curb those challenges, a need arises to appoint a Virtual CFO who can primarily be responsible for managing activities like financial reporting, record keeping and financial risks of the company. Presence of Virtual CFO helps in meeting those challenges effectively by giving financial and professional aid, analysis and support to the management.

Growing Face of Accounting

Accounting is experiencing some major changes in the process of its growth; number of firms has increased exponentially who are vying with each other. Small private companies currently have so much decision that standard service like tax preparation, bookkeeping, and compliance are turning out to be commoditised. There's so little differentiation in this packed market that it has affected the market value of these services.

Cloud technology is taking over accounting and is also reducing the basic value of accounting services. Firms who are eloquently using cloud technology to manage their finance and accounting department are more productive and efficient.

Important Virtual CFO Services

• Financial Advisory

  Virtual CFO gives monetary direction based on the need. An appropriate financial planning paves the way for the growth of the business. With this, senior administration can concentrate on the important zones without contemplating the budgetary issues.

• Break Even Analysis

  Under break even analysis, absolute cost (fixed + variable) is contrasted with the income that will decide a point where business neither makes benefit nor loss. Virtual CFO will help in inferring break even analysis by which organization will have the option to control its costs.

• Accounting Functions of the Organization

  Accounting services are the significant part of the association. It is a mode which helps in the evaluation of association's monetary bookkeeping health check. Here, accounting health check signifies a total evaluation of the budgetary and accounting part of the association. For this, a prominent expert in the administration is required to set up extensive information identifying with the bookkeeping practices, for example, planning of information, and other accounting policies.

  Planning of different policies and execution of key thoughts are required so as to have a well-defined accounting health check. In this procedure legitimate guidance pertaining to current turnover, benefit, business desires, operational and bookkeeping frameworks and key execution markers are examined and assessed. The business structure, tax proficiency, development forthcoming is likewise considered in accounting health check.

• Cash Flow Forecasting

  The other fundamental help of the virtual CFO is to forecast cash flows. Organizations must have better comprehension of cash position to take right choice. You more likely than not made appropriate cash arrangements to meet the future commitments. It helps in taking choice with respect to what amount of fund is required?

• Cost Management

  Cost management is a procedure under which virtual CFO makes a legitimate wanting to limit the expense of the organization. Virtual CFO helps in deciding the working productivity. A variable expense is broke down by the virtual CFO to control it.

• Audit Support

  Start to finish audit support is given by the virtual CFO by resolving questions asked by the auditors.

• Debt Planning

  A virtual CFO makes a legitimate debt planning with the aim to accomplish the ideal objective. An appropriate debt planning is important to control the obligation.

• Budgeting

  Virtual CFO administrations incorporate budgeting. Budgeting is done with the purpose to keep the track of all the operations business is performing. Spending should be explored on month to month or quarterly basis so changes can be made in like manner to meet the end goal.

• Corporate Governance

  Corporate governance includes all the rules and regulations which a corporate follows. These rules help in striking a balance between the interest of stakeholders, shareholders, management and clients.

• Compliances of the Various Acts Applicable

  Under this, start to finish arrangement will be given by the virtual CFO according to the provisions of Companies Act 2013, FEMA, Income Tax Act 1961, Contract Act, IPR laws and so on.

• MIS Reporting

  Virtual CFO is answerable for giving timely and precise data with respect to the budgetary health of the organization in MIS reports.

• Year End Accounts Closure and Filing

  Virtual CFO guarantees the drafting and annual filing of financial statements on schedule. It additionally guarantees the Income Tax return documenting and GST return filing.

• Internal Control

  A legitimate direction in regard of development of the organizations by method for streamlined interior control framework helps in proceeded with unwavering quality of the association. An appropriate and precise bookkeeping record, all around educated money related choice, monetary detailing is required as a piece of inner control framework to be viable. CFO of the organization helps in evaluation and execution of these previously mentioned forms.

• Accounting Policies and Procedures

  For a far reaching structure of interior control in the association, a very much planned and appropriately maintained system of accounting policies helps in upgrade of responsibility and consistency in the organization. Accounting policies and methodology help in planning and usage of well-defined accounting and management in the organization.