Our Services
Service
Solutions
Virtual CFO
Startups, MSME companies and early stage mid size corporates mostly focus in their formative years on operations and core business. In the process, the accounts department mostly gets less attention. However, as the company grows this needs to change. Fortunately today with virtual CFO services the transformation can be fast as well as cost-effective. Given below are scenarios where a virtual CFO or CFO at fractional cost will be suited:
- Your company is looking to raise funds from investors and you need insight on the valuation of your company and preparing for due diligence.
- Your company is looking to raise debt from multiple banks or finance companies and needs professional advice on the form of debt to take, the terms and conditions and also prepare forecast and business plan for bankers and take care of all the documentation till disbursement of debt/loan.
- Your company is growing very fast and the accounting department is not able to cope up with the compliances and is overwhelmed with new taxations and accounting challenges such that they need support regularly.
- Your company is facing a challenge in understanding the cost and profitability of the company with rising input costs and customer pressure to reduce prices and the accounting team is not able to present the I correct perspective
- Your company wants to enter into a partnership or joint venture (JV) with another company and requires feasibility study and preparation of business plan, JV agreements and various formality for successful start to a JV.
- Your company needs an oversight on accounts department to ensure all best practices are in place and compliances are handled professionally.
The above are only a few illustrative scenario.
Now the question in your mind would be that why not have a full time First CFO??. Well, you can always have a CFO but consider the following
- A full time CFO will come at huge cost differential as compared to a virtual CFO. The cost of virtual CFO shall be a fraction of the full time CFO Costs (do not forget that a full time CFO will also paid bonus and retirement benefits)
- Not only that if your company is appointing a highly paid CFO for the first time you may not be able to get the right candidate. The cost of appointing and reappointing will be quite high. Also based on our I experience when a professional joins in a existing accounting team that has never got such exposure it takes 1-2 years to integrate and for team members to adjust. All this time the goal of organisation (for example investor round or JV opportunity) may not wait and company can loose out.
- Our virtual CFO services will also provide in addition to the finance function services such as audit, tax planning and valuations
- Every company looking for a CFO for the first time should give Virtual CFO services a chance because the upside is quiet attractive.
How Does Virtual CFO Service Work?
This is a perfect solution for companies that do not want to burden themselves with the heavy paycheck of a full-time Chief Financial Officer.
The goal is to involve a CFO on a weekly or fortnightly basis for strategic or highly technical tasks which the existing accounts department cannot undertake.
Virtual CFO services is not a new concept. It has become quite common for companies to take this route of getting the best financial advice for their company at the right time and at the right price.
To make virtual CFO program a success companies should list out the outcomes which they expect to achieve and then analyse whether these can be handled by the existing team.
For example, a company may have the objective of setting internal control systems over its financial reporting. The company may determine that the existing accounts team is underqualified and also lacks experience in this area. This is a case where a full-time CFO may not be cost-effective since most of the other tasks are already being done by the I existing accounts team. Availing the services of a virtual CFO is the best way forward in this case as the virtual CFO will bring in the expertise as well charge time cost only for the particular task of implementation of internal control systems.
This is just one example. In any area of finance, taxation or accounting a task can be outsourced to a virtual cfo to take advantage of lower costs and super specialisation.