The CFO is the highest role of a financial professional in any organization. Being the head of finance function, it is the responsibility of the CFO to align the financial process with the company’s goals and objectives.
The CFO ensures that the organization:
- Fulfills its statutory and financial obligations on time
- Streamlines the accounting activities
- Ensures that they prepare all reports on time
- Helps in procuring funds from the right sources at the right cost
- Helps the organization in making strategic financial decisions, etc.
Though the CFO offers a wide range of financial services, these services come at a very high cost. Start-ups, SME and small companies cannot avail these services due to lack of funds. Hence, they end up planning their finances poorly will lead to the slow down or ultimate failure.
However, in the year 2020, a new term called the Virtual CFO came into existence, which provides a blessing for these start-ups, SMEs and other companies. The pandemic also made it inevitable for companies to opt for, remote working conditions and has helped them to gain confidence in the services provided by the Virtual CFO.
So, what exactly does a Virtual CFO offer?
A Virtual CFO provides all the services that the in-house or full time CFO offers, however, they offer these services remotely by video conferences and online assistance. The Virtual CFO services are offered by individuals and financial service providers who have a pool of experts and professionals who can guide them with financial advice and assistance.
Every organization has varied needs at different points in time. Virtual CFO services can be customized to suit business needs. They are not only cost friendly but also provide transparent services, which increases profitability and efficiency.
Virtual CFO services for Start-ups and SMEs:
A virtual CFO can be of great help to a Start-up as it helps in stabilizing and growing their business operations by;
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Providing consultancy:
A start-up has many financial issues, especially in its initial years. Using the consultancy services of a virtual CFO can guide them correctly and they can take the right measures without spending too much time. The virtual CFO has years of experience and hence proves valuable in providing best alternatives when needed.
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Financial advisory:
A virtual CFO provides continuous assistance and financial advice that help start-ups to procure funds from the right sources. They can also guide them to use these funds in the right manner to gain maximum rewards.
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Streamline the accounting processes:
Start-ups spend too much of their time developing and selling their products. Thus, neglecting the most important business functions, i.e., accounting, bookkeeping and tax. A virtual CFO can easily look after the financial operations using the remote system.
They can also guide employees in complex accounting issues and train them to follow proper procedures and use the system to the best of their ability while the business owners can concentrate on their core competencies.
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Preparing financial statements and data analysis:
A virtual CFO is well versed in preparing various reports and financial statements that may be of great use to the start-ups as they meet new investors and banks. The virtual CFO can also help start-ups in analyzing these reports to provide them with the progress of the business. They can help the start-ups to focus on their pain points and lead them on the path of success.
Virtual CFO services for Companies:
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Planning and Forecasting:
A virtual CFO has expert knowledge of using cash flows, fund-flows and profit-and-loss accounts as his tools for planning and forecasting a company’s revenue and sales. They can carefully use the data provided by the companies to forecast future cash flows and plan the usage of funds for the benefit of the company.
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Implementing systems and processes:
A virtual CFO can easily help companies to build a proper financial system that is easily updated as the company grows. Finances only get complex as the company grows and expands. Thus, it is very important to focus on having a strong financial system that would cater to the future goals and needs of companies and thus the virtual CFO could come in very handy.
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Increasing business productivity:
As the virtual CFO is in full control of all the financial functions. The companies can focus on their business operations knowing well that their finances are being managed by professionals. The virtual CFO prepares reports and keeps going through all the business transactions of the company and in case of any gaps or bottlenecks they can guide the companies to take corrective steps to increase their productivity.
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Better cash flow management:
The virtual CFO not only helps and assists companies in preparing the cash-flow statement, but they also carefully analyze the cash position of the companies at a given point in time. These analyses help companies to understand the flow of funds in various operations and thus can reduce any activity which may not be providing the required results.
Analyzing the cash position also helps companies to face cash crunch situations and be ready well in advance and procure funds as and when they are needed to keep their operations going.
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Preparing and maintaining budgets:
A virtual CFO helps companies in preparing budgets. They also track the progress and revise the budgets as and when required. Since virtual CFO services have more than one CFO, they bring in different perspectives to the budgeting process and help companies to prepare budgets that will not only help them take care of their expenses but also save the resources that can be used for future business needs.
The virtual CFO also offers a range of services other than those mentioned above, including but not limited to;
- Building business credibility
- Attaining a competitive edge over peers
- Financial and cost management services
- Internal control and audits
- Fund-raising activities including negotiations, etc.
Happy to help:
Using the services of a virtual CFO requires great trust and confidence. At Diligen we offer you this and even more. The virtual CFO services at Diligen have proven to be one of the best trusted and advanced services.
Diligen offers its clients both flexibility and control of their data, information and decisions. We focus on providing clients with data safety and integrity. Diligen with its pool of expert virtual CFO’s guarantees a focused and result oriented approach to help manage your finances as you soar high towards business growth and success.
