Virtual CFO

Virtual CFO (or “vCFO” for short) stands for Virtual Chief Financial Officer. A Virtual CFO is an outsourced service provider offering high skill assistance in the financial requirements of an organization, just like a chief financial officer does for large organizations.

Why do you need a Virtual CFO?

The mushrooming of the startup ecosystem has generated specialized service providers which fit the requirement of startups. Virtual CFO is one such specialized service provider. Startups, and small medium enterprises, normally do not have the resources to hire a full-time CFO.There have been studies claiming that among the top issues faced by Indian startup CEOs are hiring financial and legal experts. Startups like to keep fixed costs low and having outsourced service provider provides them the flexibility of choosing services as and when required. A Virtual CFO provides strategic, value add services to a business which cannot be provided by an accountant

Why should you hire a Virtual CFO?

Small companies may need a controller on a weekly or fortnightly basis. Our Virtual CFO services also offer one-time/ periodical help with strategic transactions, financial processes, business plans and budgeting. Our tailor-made services and the service charges are depend upon business needs and thus vary from client to client This practice is gaining ground in India, with a thriving start-up and SME culture in the country. This sector has discovered new virtual CFO companies in the last three to four years, mainly because the start-ups want to focus in their core areas, leaving the technical job to technical people.

Advantages for Small Businesses

There was widespread agreement that the following overarching trends are occurring in the industry and have been for some time:

• compliance work is commoditizing
• increased competition
• increased fee compression
• technology is helping to automate basic functions

Having access to a virtual CFO can be a big benefit for a small business. Most small businesses can’t afford an experienced, knowledgeable CFO on a full-time basis and may never consider hiring one. That’s a problem, because as many as 8 out of 10 businesses fail within two years. 

Reasons include failure to set themselves apart from the competition, and an inability find a profitable business model. With an accounting professional acting as their virtual CFO, they could keep their financial goals and realities clearly.