Virtual CFO

Introduction

In the unprecedented times that we live in, organizations are rapidly re-aligning their business strategies. Undoubtedly, CFO is one such leader who directly contributes to a company's financial health and organizational strategy. The CFO function has been evolving over the years. Finance leaders need to define the vision in terms of people, processes, and structure and prepare them to make the shifts toward the future state.

The way, in which start-ups are mushrooming in India, it has generated a huge requirement of specialized services providers. Even large corporates require professional assistance in handling the CFO office. The Virtual CFO service, also known as Outsourced CFO/Shared CFO Services is one such requirement. Virtual CFO services are provided to businesses that have not appointed an in-house CFO (Chief Financial Officer). Business owners very often face the problem when a regular CFO is not on board or at times, it is not cost-effective to appoint an in-house CFO on a full-time basis. Virtual CFO Services are the best solution in such situations. It is a way for small businesses to get CFO support that they would not have been able to afford previously.

BENEFITS OF VIRTUAL CFO SERVICES

• CorpIQ provides expert financial assistance to firms and companies at an affordable cost if compared with a full-time CFO.

• Our Virtual CFO participates in all managerial and operational activities and provides expert assistance at all levels to all stakeholders involved.

• Virtual CFO acts as an interim CFO in times when entities need the best-fit candidate to take charge immediately but on other hand, the candidate may not be in a position to join immediately due to his ongoing service commitments or serving notice period as per his terms of engagement.

• Virtual CFO steps in as a ‘Special Purpose CFO' for a limited period when the organization is handling multiple projects at the same time. This can put immense pressure on the existing CFO, who may find it increasingly difficult to do justice to all the projects.

• Support Services for CFO function in case of a corporate having its full-time CFO but in turn, requires support to facilitate him.
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SERVICES OFFERED BY VIRTUAL CFO

• Financial Projections

Virtual CFO service can help you with finding the valuation of your financial projection based on income statements and financial statements.

• Cash flow projections

Virtual CFO can guarantee you future cash flow projections based on your income statement.

• Budget allocation

Based on the situation, the virtual CFO provides financial guidance including setting your budgets for the reporting period. Appropriate budgetary planning paves the way for business growth. This allows senior administration to focus on the critical areas while ignoring irrelevant one.

• Cost Management

A virtual CFO can guide you in limiting your expenses and deciding your working productivity.

• Accounting functions within the organization

A virtual CFO checks the accounting health of the organization by doing a comprehensive assessment of the organization's budgets and accounting transactions. To have well-defined accounting services, different policies must be placed and key ideas must be implemented. Accounting health checks also consider business structure, tax proficiency, and future growth.

DOCUMENTATION REQUIREMENT FOR VIRTUAL CFO

There are no specific documentation requirements to take the service of a virtual CFO. They are subject to the confirmation of the virtual CFO service-providing firm and the purpose for which the virtual CFO is being appointed. However, there are certain basic documents that are taken beforehand.

• Basic KYC of the company such as Self-attested PAN
• Copy of COI, MOA, and AOA
• Financial statements for the reporting period
• Other Accounting records
• Various budget allocations etc
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STEPS TO APPOINT YOUR OWN VIRTUAL CFO

• Understanding the requirements of client by studying the objectives and prevailing financial conditions.

• A Service agreement is being signed between the firm providing the virtual CFO services and the client company. There are certain clauses such as non-disclosure, commercials, and deliverables that can be referred to for better understanding.

• Based on the requirement of clients and data provided by them a robust system using various software are created.

• Connecting with the concern who are responsible for the maintenance of accounts and responsible for various statutory filings allotted to clients.

• Statutory reporting to various authorities and review of financial performance is done on a monthly or annual basis depending upon the requirements of the client.