Virtual CFO Service

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• December 17, 2020

The era of 21^st century is witnessing emerging trends of highly competitive business environment which comprises of hundreds of activities. Financial management is like the backbone of a business entity that needs most of the attention. Financial management is concerned with determining financial requirement, procurement and application of finance and lastly deciding about the proportion offund to bedistributed amongst owners and theamount to be saved for future needs.

These tasks are not as easy as they sound. There has to be someone who is an expert in the management of finance. This is where the role of a Chief Financial Officer (CFO) comes into existence. A CFO is a person who sails the financial boat of an organization. He is the master of finance andpossessesa high level of skill, expertise, visibility, and decisiveness required to manage the finance of an organization. But, it is not everyone’s cup of tea to afford a full-time CFO to look after their finance because their expertise comes along with high cost and difficulty in retaining them.

But, this is not where it ends! In the wake of this, a newly born trend known as Virtual CFO is emerging.

Virtual CFO (or sometimes referred to as VCFO) stands for Virtual Chief Financial Officer, an outsourced service provider primarily offering highlyskilled services related to financial matters of an organization the same way a full-time CFO does for the large organizations.

The concept of Virtual CFO is growing its roots in India
The need for aVirtual CFO is skyrocketing in India and business entities are demanding more of aVirtual CFO’s service for their business. Following reasons clearly state why the need for a Virtual CFO is increasing in India:

•  Complex business organizations in India are welcoming change in their strategies.
• Small business has now become more quality conscious and isdemanding high-quality financial assistance.
• Current generation heading family-run businesses also value the role of a CFO.
• Private firms need a CFO to help them assess a company before they invest in it.
• The increasing needs for compliance requirement, changing regulatory environment, and global accounting standards have raised the concern about the management of finance.
• Highly helpful to startups in India because such startups like to keep their fixed cost minimum and get to choose a CFO’s services as and when required.
• A Virtual CFO offers assistance in strategic transactions, financial processes, budgeting and business plans to small businesses and startups.

Benefits of outsourcing a Virtual CFO
Some of the notable benefits of outsourcing a Virtual CFO are:

• Vast saving of money
  It is familiar that a CFO charges an enormous amount of money for his services, but with the help of a Virtual CFO, the same level of services can be availed with a nominal amount of the actual cost.

• Diversity and In-depth knowledge
  With the help of a Virtual CFO, small businesses access to diverse knowledge which can be imbibed in their business because a team of experts supports the Virtual CFO.

• Farsighted thinking
  A Virtual CFO regularly analyses operational and financial reports of business entities and helps them making long term action plans through financial planning, fundraising and identifying areas where money can be invested.
  

• Business growth
  A virtual CFO, using his experience and knowledge, helps businesses identify possible threats and opportunities.
  

• Accuracy in financial statements
  Financial statements of small businesses may contain errors in the absence of preparation of such reports by an expert. A virtual CFO can prepare financial reports for companies with more accuracy.

At AJSH, we assist our clients in financial planning, operational support, fundraising, due diligence, etc., engaging as a strategic partner on an ongoing basis to help them grow their businesses. If you have any questions or wish to know more about Virtual CFO, kindly contact us.