What is Virtual CFO Services?
Virtual CFO services are provided to the businesses who have not appointed an in-house CFO (Chief Financial Officer). In the present scenario, many challenges are being faced by the organizations in terms of growth, financial aspects, accounting as well as management. For this an officer is required to be appointed who can be primarily responsible for managing the financial risks, financial reporting and record keeping as a higher management of the Company. Thus a virtual CFO shall be there to meet the challenges effectively by providing the financial and professional advice, analysis and support to the management. CFO is a recognized management authority which is sometimes out of budget for small enterprises, startups and SMEs. Therefore there is a requirement to have a virtual CFO.
We at Enterslice, provide virtual CFO services, which shall be responsible for managing a business’s finance, accounts, compliances, corporate governance, reporting and also the strategic requirements and many more other functions. The services provided includes complete oversee of finance, accounts functions, oversight of various financial plans, and also support to the clients team and management.
What is the requirement of having Virtual CFO Services?
Virtual CFO services give an access to services of Chief Financial Officer (CFO) which helps in financial analysis and risk identification. If you are not interested in hiring in house team for performing financial functions then you may outsource CFO services. CFO services can be outsourced to a leading consultancy firm which will manage all type of finance related functions of your business. They will help you in taking your business to the next level. By outsourcing virtual CFO services you will be able to understand the financial health of your business.
Virtual CFO services will assist you in following ways:
Virtual CFO services will provide you valuable financial projections through income statement and financial statements.
Cash Flow Projections
Cash flow projection will be done in order to ensure the cash inflow to fulfill the obligation.
Manage Cash Flow
Proper management of cash flow is necessary to understand the cash utilization.
Setting budget for every year is very important and then evaluating it periodically to track the progress.
Debtor & Creditor Management
Debtor & Creditor management is a very important to mitigate the credit risk.
Setting up an Accounting System
Evaluation of existing accounting system and make recommendations for improvement
Features of Virtual CFO Services
The main feature of CFO services is to maintain records in accordance with the accounting records and make improvements in the existing organizational structure.
Here are some of the features of Virtual CFO Services:
Maintenance of Accounting Records
Virtual CFO will maintain accounting records as per accounting standards. As we know financial statements of any business must be as per the accounting standards prescribed by the government authority.
Virtual CFO analyzes financials of the company which helps in making decisions for the growth of the business. Operations are also analyzed through identification of key operation indicators.
Budgeting helps in planning cash flows in the business. This helps in analyzing the cash requirement. It makes a balance between the income and the expenses.
Financial projection is concerned with the forecast of revenue & expenses. It involves predictions of market factors. It helps in determination of cash requirement as well as resource requirement.
Cash Flow Projections
Cash flow projections help in analyzing the cash position of the company. This helps in making plan as per the cash requirement to meet the obligations.
Virtual CFO services help in reducing wastage of resources. A proper strategy is made to improve productivity.
Virtual CFO identifies risks and makes decision to mitigate the risk which may affect business in the long run. This is done to reduce the risks and improve opportunities.
Key Performance Indicators
Key Performance Indicators measures the current situation and predict the future. There are various aspects of the business such as production, distribution, sales, cash collections and inventory levels which reflects the KPIs. The virtual CFO continuously track & analyze such factors.
Virtual CFO makes changes in the organizational structure as and when required for progress of the business.
Virtual CFO manages the financials of the company which helps in growth of the business. A proper growth plan is created by the virtual CFO. It is required to make a growth plan to identify when the funding is required in the business.
What are the main Virtual CFO Services?
Following are the main virtual services:
Virtual CFO provides financial guidance on the basis of the need. A proper financial planning takes business to the next level. With this, senior management can focus on the core areas without thinking about the financial matters.
Cash Flow Forecasting
The other main service of the virtual CFO is to forecast cash flows. Businesses must have better understanding of cash position to take right decision. You must have made proper cash arrangements to meet the future obligations. It helps in taking decision regarding how much fund is required?
Virtual CFO services include budgeting. Budgeting helps in tracking performance of the company. Budget need to be reviewed on monthly or quarterly basis so that changes can be made accordingly to meet the defined goal.
Break Even Analysis
Under break even analysis, total cost (fixed + variable) is compared with the revenue to determine a point where business neither makes profit nor loss. Virtual CFO will help in deriving break even analysis by which company will be able to control its expenses.
Accounting Functions of the Organization
Accounting services are the very important aspect of the organization. It is a mode which helps in the assessment of organization's financial accounting health check. The accounting health check means a complete assessment of the financial and accounting aspect of the organization. For this, an eminent professional in the management is required to prepare a comprehensive data relating to the accounting practices such as preparation of data, and other accounting policies. Areas of expertise are required to be assessed in order to achieve growth to the next level.
Preparation of various policies and implementation of strategic ideas are required in order to have a well-defined accounting health check. In this process proper guidance relating to current turnover, profit, business aspirations, operational and accounting systems and key performance indicators are discussed and evaluated. The business structure, tax efficiency, growth prospective is also considered in accounting health check.
Compliances of the various acts applicable
Under this, end to end solution will be provided by the virtual CFO as per the provisions of Companies Act 2013, FEMA, Income Tax Act 1961, Contract Act, IPR laws etc.
Corporate governance means rules & regulations which are followed by the corporate. It makes a balance between the interests of stakeholders, shareholders, management and clients.
Cost management is a process under which virtual CFO makes a proper planning to minimize the cost of the company. Virtual CFO helps in determining the operating efficiency. A variable cost is analyzed by the virtual CFO to control it.
A virtual CFO makes a proper debt planning to achieve the desired goal. A proper debt planning is necessary to control the debt.
Year End Accounts Closure & Filing
Virtual CFO ensures the drafting & annual filing of financial statements on time. It also ensures the income tax return filing & GST return filing.
End to end audit support is provided by the virtual CFO by solving queries raised by the auditors.
Virtual CFO is responsible for providing timely & accurate information regarding the financial health of the company in MIS reports.
Accounting Policies and Procedures
For a comprehensive framework of internal control in the organization, a well-designed and properly maintained system of accounting policies helps in enhancement of accountability and consistency in the organization. Accounting policies and procedures help in formulating and implementation of well-defined accounting and management in the organization.
A proper guidance in respect of growth of the companies by way of streamlined internal control system helps in continued reliability of the organization. A proper and accurate accounting record, well informed financial decision, financial reporting is required as a part of internal control system to be effective. CFO of the company helps in assessment and implementation of these above mentioned processes.
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Why Choose Us?
Virtual CFO services are opted by such business enterprises who wish to outsource its finance related functions. Enterslice can assist you in delivering CFO services so that there will be no need to have separate executive professional to perform such services in the business. We will render high quality services at a cost lower than the cost incurred in keeping in house team for performing such services. We provide best virtual CFO services in the country. We commit to ensure smooth functioning of day to day affairs of the business of the client. We adopt the best accounting practices for the client. In addition to this, we provide end to end assistance in relation to book-keeping, payroll management, receivable management, taxation, Compliance management – Corporate, Taxation and Listing Laws, budgeting, preparation and management of accounts and MIS reporting.