As the business, and outsourcing process of reliance on experts and professionals has increased over the past two decades, optimization of business processes is essential in today’s environment.

As of 2022, a total of 80,152 startups had been officially recognized by DPIIT, which number is on the rise with 21 Unicorns born in Year 2022 in India.

Outsourcing of specific departmental budgets lead to efficient management of business by these Startups, which require efficient utilization of limited funds and resources available to them.

More and more startups, SMEs and Multi-country structures have been observed to rely on Virtual CFO services, for outsourcing their finance, tax, legal, secretarial and compliance and investment banking needs to companies like Anbac Advisors.

Availing Virtual CFO services by these Startups has been observed to save more than thirty percent of their costs, which can be directed towards product developments, enhancement of product features, or marketing and sales activities to boost their top line.

Where hiring of resources, without getting the requisite variety of experience and quality is an extremely costly affair, there is also a huge challenge with regard to the completeness and quality of solutions and capability that can be solved through in-house team hiring. Most Founders, in a survey conducted by Anbac Advisors, found it difficult or nearly impossible to assess the skills and competency of finance and legal resources while hiring an in-house resource.

In an interview with more than 1,000 clients of Anbac Advisors in Bangalore, Gurugram, Mumbai, Singapore and US, it was found that the Founders found huge value in saving more than 33% of their overall budgeted costs, reduced their exposure and risk of tax penalties, and other government penalties from RBI, MCA , ACRA, IRS and other bodies, which enabled them to focus on important growth prospects for the business. This significant saving of time and energy and money over a sustained period of three to five years reaped major benefits for 8% of the Startups and SMEs who could direct those funds towards R&D and new product innovations. More than 78% found the cost and time saving to be the winner for them. Other Founders constituting nearly 13% of the total lot were extremely quality conscious, and found respite and satisfaction owing to the quality of services, and ethical approach towards problem solving to be the major attraction.

Virtual CFO and outsourcing is here to stay and grow, as it enables more innovation, creativity, marketing and growth for Companies at all levels.

Team Anbac Advisors