Virtual CFOs are finance professionals who provide outsourced services to organizations for successfully running the finance function along with guidance of expert advice. Managing a startup company is a huge task, along with preparing financial statements and looking for investing prospects, Virtual CFOs bring you all this over a phone call, video call despite being overseas. Administering cash flows while creating strong expertise and wide experiences for the businesses is primary role for Virtual CFO Services.
Outsourced CFO is a service that includes all the above facilities without hiring an original CFO. Virtual outsourced CFO services is speedy and time efficient. Outsourced Virtual CFO Services will give a point-by-point investigation of your income sources, income age strategies, and expenses related with income age to decide zones that might be prompting diminished profitability.
How does Outsourced CFO work?
Virtual CFO Services works on the same lines as any other outsourced function. A virtual CFO engages over mails, video or audio calls. Working with competent multiple firms, brings an added advantage of hiring virtual CFO. They provide financial strategy and expert investment advice depending on the industry, firm and situation of the client.
Tasks performed by outsourced CFO for startups:
Strategical tasks:
Strategic objectives include fulfillment of various activities such as:
1. Fund raising and related decisions
2. Business advisory
3. Consulting needs
4. Planning and amendment of Key Performance Indicators (KPI) for business
5. Deals regarding mergers and acquisitions
Tactical tasks:
Tactical objectives include fulfillment of various activities such as:
1. Structuring Cash flow statements
2. Financial reporting, budgeting and forecasting
3. Implementing the required accounting practices in accordance with the industry standards
4. Fractional CFO for startups
5. Tax Planning Daily Management
Daily Management
The objectives include fulfillment of various activities such as:
1. Reporting KPIs for business verticals
2. Data collection and reporting
3. Keeping up with Management information systems
4. Book keeping services
Advantages of Virtual CFO services to Startups:
Flexibility: Virtual CFO services for startups provide full-time employment for certain time period depending on contract, fractional or part time CFOs. At the point when the determinants change, one can increase or decrease the timings and pay for CFOs. Without losing the sort of abilities and information that one needs; one pays for the time and expectations unique to its business. Payment of outsourced services is based on pay per use which gives immense flexibility to the start-ups.
Stakeholder alliance: Virtual CFO Services create an unsaid association among various stakeholders, that is stakeholders, lenders and debtors. Third party services bring in assurance along with quality due diligence and supervision of Virtual CFO. An outsourced entity brings limited motivation for financial asymmetry.
Cost Reduction: Outsourcing options brings down the cost. Outsourced Virtual CFO Services attracts contractual obligations and firm can adjourn the contract when in prospect of saving cash. Virtual CFO Services charge a minimal fee as compared to CFO; this further reduces cost. Under Virtual CFO Services companies get an altered customized experience that is offering precisely the types of assistance one needs with none of those that need not be required. Since one is just paying for what needed, this is another head where one can reserve funds. Costs can be reduced ranging from 30-40% for startups and this bolsters the growth of the company.
Speed and efficiency: Some activities are required once in a while, say pitch deck for investment needs. Virtual CFO Services attracts efficiency in similar fashion by ramping down the outsourced team when not required. Un-even demand invites speeding up the process of ramping down. Moreover, since the function is outsourced, special team allows the process to fasten and meet direct needs for the firm.
How is Virtual Outsourced CFO Services acting an aid to startups?
Startups in the early stages can sporadically hire full time CFOs and are hence opting for Virtual CFOs to meet compliance needs and up to the mark financial strategies.
1. Dire need of global compliance accounting standards (Indian GAAP/ US GAAP/ IFRS) and dynamic business environment
2. Bolstering the strategic decisions under complex environment.
3. High quality financial advice for start-ups ecosystem prevailing in India
4. Mobility of choosing from wide variety of services The greater part of the occasions a CFO likewise search for arranging an agreement, to expand the by and large monetary abundance. Successful exchange will help in cutthroat bid and viable dynamic. Virtual CFO Services provides these functions at an affordable price and with esteemed skill set of team members.
In the event that your business is expanding dramatically and sooner rather than later you intend to require financial backer subsidizing, a Virtual CFO could be significant in getting the financing. A virtual CFO will help guarantee that everything goes easily in the event that you intend to take on any huge monetary arrangements, like a consolidation or takeover, and allot obligations and difficulties to the perfect individuals at the perfect chance to forestall stumbles.
– Jaya Gunwani
Finance Team
AnBaC Advisors