What is Virtual CFO ?- Benefits, Cost and More

A virtual CFO is an outsourced service provider offering advanced financial assistance and related services to a business entity.
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What is Virtual CFO?

Virtual CFO means virtual Chief Financial Officer. A virtual CFO is an outsourced service provider, could be an individual person or a company offering advanced financial assistance and services like bookkeeping, payroll automation, obtaining necessary licenses like GST Registration, TDS Registration, etc. to a business entity.

In other words, virtual CFO does all the functions of a Chief Financial Officer of a company without directly associating with the company.

In a fast-growing company, it is easy to lose sight and lose focus on Bookkeeping, payroll automation, compliances and accounting.

This is something that has always haunted startups.

So the question is what to do for the same?

how do get things sorted out without shedding a lot of money?

Well, Virtual CFO is what you are looking for.

Virtual CFO Services comprises of accounting, expense management, strategy, forecasting, and much more. Virtual CFO service providers help you maintain that balance.

Therefore, all businesses, whether small or large must take help from Virtual CFOs to better manage their companies.

Why you need virtual CFO services?

Virtual CFO services are helpful for both big and small companies. However, as a matter of fact, they are more crucial for small businesses and startups.

This is because generally big companies can afford to hire a full-time CFO in their companies. But startups and small companies can not do that because they need finances to expand their businesses and look for new horizons of opportunities for the growth of their companies.

What does a Virtual CFO do?

Chief Financial Officer (CFO) manages the financial activities of a company. Financial preparation, execution, supervision, and monitoring are all responsibilities of the Chief Financial Officer (CFO).

To formulate a plan for the company’s next cycle performance, financial forecasts and budgeting are needed. A Chief Financial Officer with comparable business expertise would provide you with relevant knowledge for the company’s development and strategic planning.

Virtual CFO Services are less expensive than full time CFO

Outsourced CFO services are less expensive as compared to in-house CFO. Hiring a full-time CFO will add expenses like paying their salary, payroll taxes, etc.

Virtual CFO services can give your business the same benefits as an in-house CFO provide. You pay them when you have work for them.

Comparably more secure than hiring a CFO

Full-time CFO manages most of the company’s delicate data, like financial data. There are chances the data likely accessible outside of the organization with sketchy intentions or likely to make it available with others in the organization.

You can keep your business delicate data out of the CFO’s reach and share it when necessary. This will not only secure your organization but make you more confident working with the CFO.

Profitability and Accuracy in Company’s Finance

Taking Virtual CFO Services will reduce the weight of a full-time CFO. You can outsource and select the best CFO’s expertized in the same industry or helping other industries with their experience. Good CFO’s can identify and cut unnecessary spending.

They can help you with optimizing your company process. Unlike full-time CFO’s, virtual CFO’s running as a business can minimize the time-consuming process.

Strategic planning, and decision making

Outsourced CFO will not only take care of your finance and accounting but they will handle every aspect of your company. Most business owners find the frequent urgent task tough to take care of. outsourced CFO’s take care of those frequent urgent tasks which help the business grow and stronger its financial status.

Businesses without strategic planning will not find it easy to stay in the market. Virtual CFO’s will draw the way businesses need to follow to achieve their goal and keep growing.

Manage business risks and transection decision making

To ensure financial success, outsourced CFOs prioritize risk control to offer more realistic alternatives to corporate challenges such as bribery and other issues.

Regular CFOs are more concerned with their job description, and there is a time when your business requires CFO’s involvement to assist with many other challenges.

Outsourced CFOs with their team can identify these situations and help the business in more engaging ways.

Outsourced CFO Services for Small Business: Make better decisions.

CFOs in an office environment find it difficult to make the decisions and approaches towards the problems for better financial improvements. An outsourced CFO can take their decisions wisely for the better of the business.

They can analyse the problem that exists in the company and recommend the solutions as they find them appropriate.

Help manage finances and Better Decision Making

Being a new company you might be facing problems with regular bookkeeping, especially when it is not automated. It is easy to lose track of your finances and forget where you are spending your money in the growth stage of your company.

In fact, most startups fail to manage their book of accounts when they get busier and busier by the day as they grow.

Virtual CFOs helps such type of companies in maintaining and investing their monies in the right path and also keep a track of their investments.

As a young business entity, it is bound to happen that you will lack in many areas of the business world, decision making being one of them.

Being a new business settlement, you might lack the knowledge about the next step or you might be unsure about it, or you may have been making decisions from the emotional side of you rather than the rational abet.

Virtual CFOs help you with rational decision making to increase your overall growth.

Hiring or outsourcing a Virtual CFO could be beneficial to your company’s overall growth as they not only help you with your finances; they also provide services such as fetching the basic necessities for your company such as basic licenses, helping with fulfilling statutory compliances and maintaining your book of accounts.

Why Choose Starter’s CFO as your Virtual CFO in India

Your business is growing and it is getting difficult to manage things in favor of company growth. You never have enough cash or time. Running a private limited company with a growing business is tough. 

We have seen the clients struggle with too many responsibilities, having no idea of what’s up with their company financial health and performance, unbalanced decision-making cause loss in productivity and company’s growth, cannot find the gap causing slow growth and many others.

Starters’ CFO is experienced and knows how to deal to short out these issues. Starters’ CFO will manage financing, fundraising, and accounting, allowing you to concentrate on your startup’s development.

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