Virtual CFO services have evolved in recent years, thanks to the market demands and software companies that provide tools to make these services possible. And now, many business owners seem to want to reap more benefits of these virtual CFO services in India, especially since changes in the workforce setup mean more and more individuals are becoming their own bosses.
But what are virtual CFO services, and how will they benefit businesses? Let’s answer these questions below.
What Are Virtual CFO Services?
With the start-up ecosystem rising today, specialized services have been created to satisfy the need of these businesses. Virtual CFO is just one of them.
Since a start-up business starts from scratch, they need to have a clear business plan and financial forecast. And they do not have enough resources to hire a full-time accountant. That is where virtual CFO services come into play.
Virtual CFO services are services outsourced to providers that offer assistance in an organization’s financial requirements. Virtual CFOs typically control the expenses and manage the entire legal, taxation, and financial compliance of an organization.
How Are Virtual CFO Services Helping Businesses All Over the World?
A virtual CFO can identify opportunities for optimization and growth, such as improving cash flow and setting healthier and more realistic margins.
They understand that margins are among the core elements of an organization’s health. With a poor margin, it becomes more difficult to handle financial challenges and grow the business. In contrast, an increase in margin can make a significant difference to an organization’s cash flow and bottom line.
That is just one way a virtual CFO service can help. Here are more ways virtual CFO services in India and all over the world can help ensure your business is positioned for growth:
Provide Accurate and Timely Reports
Virtual CFOs can provide your business with accurate financial data like the cost of goods and margin on a timely basis. Suppose a project has been completed, but some expenses are not written on the books. A reliable virtual CFO can help pull the right numbers at the right time.
Identify Margin Drivers
A professional and experienced virtual CFO can perform an in-depth analysis of data to identify the primary margin drivers for a business. They can also perform a product or service-based profit margin analysis to determine the reason for unhealthy margins and suggest actions that can help drive business growth.
Advise Changes
This is the aspect where virtual CFOs can significantly help drive business growth. They leverage accurate data, interpret them, and give sound advice to the business owner on what can bring about positive change. If changes are implemented, virtual CFOs can prepare historical reports to understand how far the business has grown to improve cash flows and margins.
The Benefits of Having a Virtual CFO
Here are more benefits of working with a virtual CFO:
1. Cost-Effective
One of the benefits of having a virtual CFO is that you save a lot. Suppose you require this professional to handle your ongoing compliances, and you think this task will only take 20 hours per week. In that case, you don’t have to pay for a full-time employee, and you only pay for the hours required to complete the job.
Of course, you can request more time if needed. Don’t worry because the rates of virtual CFOs are pretty reasonable and affordable.
2. Diversity
Since virtual CFOs only work for a certain number of hours, they can work for multiple businesses at once. And with this model, you have the advantage to tap into the experience and expertise of these CFOs.
Also, take note that some virtual CFOs are entities. This means you can tap into multiple minds to resolve problems. Well, this is not possible with an in-house CFO. Having access to such diverse experiences can greatly benefit your business in more ways possible.
3. Forecasting
These virtual CFOs are experts in both finance and business, so they can forecast financial numbers accurately. With the right data, they can effectively plan and help execute major financial decisions.
4. Network
Virtual CFOs have a vast network with successful clients and businesses. If needed, they can tap into this network to drive your business to success.
Having such a network is even more powerful if the virtual CFO is an entity. This suggests that you can benefit from a wider network, which is not available and accessible otherwise.
5. Compliances
Businesses are liable for different compliance regulations and measures. And because these are very technical aspects, they require the help of experts. Virtual CFOs can take care of these technical tasks and handle internal filing.
Virtual CFOs can also create customized report templates for clients. This is beneficial to help establish your brand.
Let Virtual CFO Services Help Drive Your Business to Growth!
Virtual CFO services have been trending and in demand these days because many people are becoming their own bosses and running their organizations. So, it’s high time that you work with these professionals!
And at Agarwal Ajay & Co, we offer these services for you. We have the adequate knowledge and skills to help drive business growth. Our virtual CFOs are competent and can give you confidence in the numbers to help you effectively track cash flow and analyze your business performance. Most importantly, we can help you in managing your business plan for future growth.
