VIRTUAL CFO SERVICE: BUILDING A PROMINENT WORLD
Did you know, on an average about 2 million start-ups are launched in India every year? The expansion of start-ups in India has generated a requirement for specialized service providers. The virtual CFO service is one such requirement. Business proprietors face difficulty when a regular CFO isn’t on board or sometimes, it’s not cost-effective to appoint an in-house CFO on a full-time basis. Virtual CFO Services is an excellent answer in such situations.
With a 24/7 virtual access to the CFO services and little amount required to hire the service, the CFO Service Provider(CSP) helps businesses in resolving all the issues that management teams face financially, keeping in mind the accounting integrity to be established. Moreover, the CSP also works unitedly with the promoters and senior management of the company.
The CFO is like that of a treasurer or controller of the company due to the fact they are accountable for managing the finance and accounting divisions and for making sure that the company’s financial reports are accurate and completed in a well-timed manner. The CFO accountable to the CEO but has sizeable input in the company’s investments, capital structure, and how the enterprise manages its earnings and expenses.
At times, the business operations face huge hassle when the current CFO unexpectedly quits or isn’t available for a long period due to any cause like medical or personal. In such instances, virtual CFO offerings need to be availed as entity’s Interim CFO, who are available typically for a period of 1-3 months to fill the vacancy that occurred between one CFO exit and the hiring of a new one.
There may additionally be instances when the corporate is addressing more than one task at an equal time, which may put tremendous strain on the present CFO. Here, CSP steps in as a ‘Special Purpose CFO’ for a restrained period, until the time the business enterprise requires its help.
WHY HAVE VIRTUAL CFO SERVICES CREATED A HYPE IN THE MARKET AND DOES HAVE DRAWBACKS?
As proposed by Peter Drucker “Do what you do the best, outsource the rest.” Small businesses can have the benefit of the high expertise and lower costs of outsourcing a virtual CFO due to the pliability offered by them. Virtual CFOs are a way to maximize efficiency and so, they use technologies like AI, data analytics, and big data to reinforce how compliances are maintained.
With these services, businesses can gain awareness of the areas that need improvement and be ready to implement strategic solutions to the same, along with helping the organization in predicting the budgets and finances for the longer term. A virtual CFO maintains a close connection with the external stakeholders and professionals. They supply additional reassurance to reporting and analysis, Due Diligence, and a knowledgeable oversight that provides confidence to the external party.
Dev Mantra offers virtual CFO services along with interim CFO services to companies that cannot afford a full-time traditional CFO along with due diligence services like, buy and sell side due diligence, tax due diligence and secretarial due diligence to ensure that prospective investors make an informed investment decision.
AVAIL THE BENEFITS OF VIRTUAL CFO SERVICES CALL NOW
However, outsourcing virtual CFO’s has its share of cons. A virtual CFO might not have sufficient industry experience and so, might not be ready to help the businesses in taking important decisions effectively. Hiring traditional CFO’s may develop efficient management processes within the corporate. Virtual CFO’s hired for a brief-term might not be able to do so.
FUTURE OF VIRTUAL CFO’s: A BOON OR A BANE?
India is heading towards a session of entrepreneurship. It is ranked third in entrepreneurship because the new firm creation has risen dramatically in India since 2014. Businesses are finding it difficult to take care of their finances in check, and every enterprise requires an attainable financial strategy and execution to flourish. If an enterprise is growing exponentially and wants to get investor funding in the future, a CFO ought to be necessary for securing the financing.
Start-ups are searching for people that can control the funds and acquire everyday insights into their business in terms of strategy and numbers. Numerous start-ups can’t outsource a full-time CFO for their venture due to lack of finance and in such a case everything is blanketed by a virtual CFO.
The virtual CFO offerings in India will be a game-changer for small businesses as well as top corporates. With more than 400 virtual CFOs and corporate service firms in India helping the financial ecosystem, there’s wonderful scope for the virtual CFO industry to thrive in by way of supplying economic help and turning into a vital partner and growth driver for fulfilment. Therefore, it can be envisioned that virtual CFOs have a bright future in India.
Dev Mantra also specialises in Financial Advisory Services, Transaction Advisory and Secretarial services. In the past we have done number of due diligence process and helped our clients to close the deal successfully.
Contact us any time at charteredaccountants@devmantra.com
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