By Dipali Nishad for SKB Accounting

What is a Virtual CFO? 

In the cut-throat competition world, many businesses want to focus on their primary operations and get relieved from the financial stress. So, they outsource a Virtual Chief Financial Officer (Virtual CFO), which can be either an individual or company that offers the services of a CFO. 

 A virtual CFO is an off-site, part-time CFO who offers his expert finance strategies.  Especially, the small business or startups who cannot afford to hire full-time CFOs outsource a virtual CFO. As they always need finances to sustain, expand and forecast new opportunities. Moreover, a virtual CFO helps with system optimization & reporting, profit maximization, raising capital and preparing transactions among others.  

Its numerous benefits have skyrocketed the demand for Virtual CFOs. To understand why, let’s dig a little deeper.  

  1. Provides best-proven strategy
    All businesses need an efficient business model comprising industry forecast, internal & external resources, consumer demographics & behavior, financial strategy and competitive positioning.Virtual CFOs having full-stack capabilities provide the best resources and information. It makes your business more flexible and proactive to adapt to the dynamic industry.  They have detailed knowledge of analytics and what factors lead to changes in your industry. In the modern world, virtual CFOs directly help your other departments concerning the financial benchmark of your business. In addition, they do standard financial planning and analysis. With years of experience, they accurately analyze the available data and provide a prompt actionable plan for your business. They help the top management in designing the best strategies for companies growth.
  2. Financial Planning
    Financial planning is one of the most important factors behind successful businesses. Especially for startups and SMBs, who always seek funds for expansion and growth. That’s why taking assistance from a CFO becomes vital. Not having a financial plan can cause chaos and failure. The virtual CFO makes financial planning feasible for all large and small businesses. Data related to your business operation is used to create financial plans for all cash management, borrowings, stock offerings and restructuring. With a virtual CFO, you get to know about the sources your business can use to generate funds, burn rate, the pace at which company goals need to be achieved and relocation of resources in a manner that doesn’t hamper the company’s growth.They help you develop a financial and strategic plan with insightful data. This will help you in profit maximization. Moreover, it also leads to better decision making with better and cost-effective operational efficiency.
  3. Tax Planning
    As a business owner, you wouldn’t want to make a mistake in tax filing. Apart from the financial loss, it can also harm your goodwill. Therefore, tax planning is crucial and a virtual CFO can help your business. They have the expertise & are updated with all amendments, rules and regulations of the government. CFOs help in the analysis of tax advancement, capitalization, advice on financial issues, increased tax positions and creating assets. They uncover money leaks, tax deductions and business recruiting. Eventually, they provide help in your overall tax liabilities and financial issues.
  4. Scale Up the Company
    The virtual CFO assesses scaling up your business by tracking in which direction your business is going. They use the latest cloud-based software to enhance the timeliness and quality of financial information. They provide better and on time forecasting, analysis and financial reports of your business. Eventually, they offer actionable and valuable financial data which can be used strategically to grow your business.
  5. Cost & Time Effective
    When you hire a full-time CFO, a lot of costs are invested in the hiring and training process. Whereas, a Virtual CFO can be recruited as per your wish. You can work with an experienced and professional CFO at a very less amount than the salary of a full-time CFO. Since the Virtual CFO works with a wide range of industries and businesses, their diverse experience is no less than a gold mine for your business. They always keep a tab of your business’ previous handled financial activities like bills, budget, paperwork, etc. and save a lot of time for business. Therefore virtual  CFO services are cost & time-effective. 

We at SKB Accounting offer Virtual CFO Services and provide detailed reports and analysis that will help your business grow. Schedule a meeting with us now and onboard your person Virtual CFO at economical prices.