As the horizons of the business world expand, the challenges of managing it are many. Looking after the company’s finances, accounting, corporate governance, etc. are vital requirements and business owners seek expert advice to meet these necessities. Be it any size or segment, many businesses have Chief Financial Officers (CFO), but not all of them have skilled or sufficient resources to handle the financial and accounting front. Not all organizations can hire an in-house CFO for better management and growth of business with assured management of financial resources.
For those who cannot have a full-time in-house CFO, the modern-day tech world offers the services of a Virtual CFO who can do the same job virtually – financial reporting, assessing risks, record-keeping, and much more. The virtual CFO, who could be a person or an organization, engages as a strategic financial partner to assist you in expanding your business, sitting on their own premises instead of in-house presence. With modernized software tools in vogue, the role of a virtual CFO is sure to help you maximize your revenue and increase your client base.
This detailed article on Virtual CFO will assist you in understanding the intricacies of what virtual CFO can do, why are they needed, and their benefits, roles, and responsibilities.
What is a Virtual CFO?
Virtual CFO or vCFO stands for virtual chief financial officer. A virtual CFO is an outsourced service provider offering high skill assistance in financial requirements of an organization, just like a chief financial officer does for large organizations. – Wikipedia
A Virtual CFO provides external advice and consultation to an organisation in the areas of finance and accounting as against a traditional one who is appointed in-house by the organization. A vCFO assists business owners in taking major decisions based on their proficiency in financial planning and strategy planning.
Whenever a business kicks off, the owner takes up all responsibilities. But as and when it expands, the need for a specialized financial officer is felt. That is the role of a virtual CFO comes in – an individual or an organization that offers effective CFO services based on your specific requirements. Having a virtual CFO is bound to showcase a great return on investment with effective operational processes and enhanced relationships.
The way vCFO works is totally dependent upon the organization hiring it. The virtual CFO will work remotely on a full-time basis or a part-time basis, as needed. They bring along with them, a pool of experience and expertise in varied aspects of financial and accounting management. They gel well with other departments and ensure accurate financial figures with maximized revenue.
Why is There a Need to Have Virtual CFO?
It is tough to perceive the need for a virtual CFO when the business starts. But, as business moves on and expands, the requirement increases. Here are certain pointers that call for hiring of a virtual CFO for a better business prospect:
- Lack of a futuristic financial strategy
- Aspiration to grow your business multi-fold
- Managing the cash flow, expenses, payroll, compliance etc.
- Providing detailed inputs to investors
- Peer competition and technological enhancement
- Work related to taxation and commodity services
- Need for remote counselling
- Changes in business patterns
- Maintaining accurate financial reports
Advantages of Having a Virtual CFO
Here are certain evident benefits of hiring a full time/part time CFO for your organization:
- Maintaining accounting records, cash flow projections and budgeting
- Financial analysis, planning, and identification of key performance indicators
- Enhance profitability, productivity, and growth prospects
- Maintain the organizational structure
- Daily tracking of accounting rules and regulations
- Faster decision making
- Flexibility, scalability, security, and confidentiality
- Leveraging accounting expertise and professional services
- Fastening financial and related processes
- Highlighting trends, risk areas and assessment, problem areas and security hassles
- Target over spending in the organization and offer insight
What does Virtual CFO do? Key Responsibilities of Virtual CFO
As a virtual chief financial officer, the following are the key responsibilities that must be adhered to:
- Act as a confident backbone to the CEO and the organization
- Accelerate growth and build a strong, effective environment
- Manage and maintain the financial aspects, stability of finance, and budget
- Prevent fraud, misuse, and security threat in the organization
- Risk management and mitigation
- Maintain business relations with employees, customers, board of directors, stakeholders
- Utilize funds in the right way at the right place for the betterment of business
- Act as a strategic business partner and financial strategist
- Establish a financial structure and generate desired reports
- Include key metrics like site metrics, marketing conversion rates, relevant KPIs
- Showcase futuristic trends and projections for enhanced growth of business
A Good Read: Gartner CFO Survey Reveals A Dramatic Digital Acceleration Since COVID-19
What are Outsourced CFO Services?
Outsourced CFO services, as the name suggests, focus on a financial leader or company who does not belong to your organization but offers expert guidance in areas of finance, accounting, business, and operational processes of your business. The outsourced CFO could be leveraged full-time, part-time, or based on the duration of any project. The financial expert assists organizations in solving problem areas like growing capital, cash flow problems, meeting financial deadlines, etc.
The outsourced CFO leads the accounting and finance section with confidence, along with their skill set of resources who have detailed knowledge about managing the finance of a company. Organizations hire outsourced CFO – full-time or part-time with a view to obtaining detailed management reports that can be leveraged for further business decisions. Their main objective is to align the financial and accounting processes with the organizational goals.
Outsourced CFO services can benefit your organization with cost reduction, quality of services, better focus, and efficacy, developing budgets, cash management, and compliance with tax regulations.
Key Inclusions in vCFO Accounting Services
- Financial advisory activities for proper monetary direction
- Understand breakeven analysis for complete cost controlling
- Accounting, financial, and budgetary activities
- Cash flow predictions and necessary plan of action
- Manage costs and variable expenses
- Comprehensive audit and bookkeeping support
- Abiding by rules and regulations of corporate governance
- Detailed MIS reports with accurate and timely information
- Quarterly, monthly, and year-end processes, account statements, and income tax return filing
- Creditor and debtor management
- Review financials, create insightful information, and make recommendations
- Strategic planning and implementation
- Prepare the organization for a fintech way of working
- Manage and monitor IT processes related to banking and finance
Horizon Biz Consultancy – Trusted Name for Virtual CFO and Accounting in Dubai, UAE
Virtual CFO services are an apt and affordable way for businesses to get the best of financial expertise within their allocated budget and without being in-house. In short, it works perfectly for all involved stakeholders in terms of enhanced profitability, productivity, and revenue.
As your proficient outsourced CFO in Dubai, we @ Horizon Biz Consultancy offer optimum CFO services that will take off the entire financial, tax, and accounting management burden from your head. We are a group of expert financial consultants and accountants based in the UAE to assist individuals, SMEs, MSMEs, and large companies across the GCC.
As our sole responsibility, our experts ensure value-added services with professional and modern-day techniques. Contact us and give us an opportunity to avail the best of CFO strategy and consulting services.
