Virtual CFO Services
No Start-ups generally prefer to appoint a CFO but prefer to outsource the finance services to another firm. Apart from this, the business can also utilize virtual CFO services. Virtual CFO services can be offered either remotely or through an external consultant.
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Why?
Due to digitization, businesses have to adapt according to the changing circumstances. New businesses such as Start-ups and SMEs, may not have the necessary resources to hire an in-house Chief Financial Officer (CFO). Hence, these prefer opting for virtual CFO services. The advent of digitization has made the role played by a CFO more challenging. In this competitive environment, a CFO needs to have relevant skills to carry out financial functions, management, and business functions. Every organization requires appointing an experienced finance professional, and experienced MBA/CA is responsible for the financial functions & reporting carried out in the organization.
Planning & Strategy
- Creating future financial business plans : Discussion with management & preparation of future financial business for upcoming year and as per requirement for 3 or 5 years plan.
- Forecasting Budget : Preparing of monthly & annual budgets for management to analyse and understand the cash burnout.
- Monthly review meetings : Facilitating in monthly review meeting explaining variations & effects of the same in our financials & plans.
- Reforecast Budget : Preparing & reforecasting budgets by analysing variances & its effects on the prepared budget and discussing with management solutions for the same.
Governance & Control
- Participation in Board : Virtual CFO takes part in Board Meeting & acts on behalf of investors in complying all types of governance and controls by reporting correct cash burnout to investors & board.
- Development and implementation : It helps in developing and implementation of modern governance standards for effective & efficient functioning of organization.
- Strengthening the Board : It helps in strengthening of the board of company by taking care of all financial aspects as we know financial aspects are the most important factors for any decision making & controlling the organization.
- Finding Successor for Retiring Board members : It also helps management in finding the right successor for retiring board members in terms of experience & capabilities.
Due Diligence
- Vendor Due Diligence : Vendor due diligence takes place when a company seeks to buy, partner with or enter into a business relationship with another company. Virtual CFO helps in performing same by supporting on behalf of company.
- Financial Due Diligence : Financial due diligence is an investigation, audit, or review performed on financial records to confirm the facts of a matter under consideration.
- Management Audit : It helps to oversee management audit by performing assessment of how well an organization's management team is applying its strategies and resources and its effectiveness & efficiency.
- Part-time CFO support services : It also provides organization supporting by coordinating with third party to oversee & overlook due diligence performed by other services organizations.
- Customer Due Diligence : It also helps organization analyses of credit worthiness and credit limit setting of customers by assessing its recovery rate & payment default.
Decision-Making Support
- Management Dashboards : It provides management a MIS dashboard to facilitate decisions for effectively running the organization.
- Development of MIS framework and contents : It helps in developing MIS framework & MIS reports as per organizations framework on a monthly or periodic basis.
- Customer and product profitability report : It helps to analyse the profitability of the organization as per following basis, product-wise & customer-wise to understand which customer & products to be focused.
- Treasury Management and fund forecast : It also helps in planning & management of funds so as to effect the forecasting of funds utilization in an effective & efficient manner.
Fund Raising
- Bank Loan : This is one of the traditional ways of raising funds by way of taking loans from banks in place of some collateral security.
- Private Equity : This is one of the modern day approach of raising funds by exchange of equity shares as per valuation made by professionals & investors.
- Pre/Post acquisition support : It helps in providing support to entity & management after raising funds by way of acquisition support.
- Liaison with Investors/Potential acquirers : It also acts a support for company to raise funds by company and also helps by arranging meetings with potential investors in its personal & professional network.