What is the importance of a virtual CFO for your business?
What is the importance of a virtual CFO for your business?
The times in the global corporate sector have changed especially after the pandemic hit the world. The winds of change have also affected the SMEs in India. SME owners are now finally revisiting their attitude towards the adoption of modern-day business management practices such as hiring a virtual CFO.
What is a Virtual CFO?
According to the spokesperson of a leading company that offers CPA services in Mumbai, a virtual CFO could be an individual or a small team that is not a part of the workforce of a company; but an independent entity or individual outsourced from a CPA service provider, who assumes the role of a typical CFO for a brand or a business.
Role of virtual CFO as a finance manager
The role of a virtual CFO could be an assortment of job titles but typically they look after the following aspects of a business or brand –
- They will increase the financial control and visibility of the company so that the owner of the company can make informed decisions every time.
- They will help business owners by bridging the gap between the strategy-making team, the operations department, and the financial department of the company.
- They will also make sure that the balance sheet of the company has details pertaining to all the liabilities as well as assets of the company in a bid to make sure better financial and business-critical decisions could be taken in the future.
- Virtual CFOs also make sure that a business is not only flourishing in the short term but the long-term growth objectives are also achieved in the right time frame.
How does a virtual CFO help in strategic planning?
When you hire a virtual CFO from one of the well-established CPA firms in Mumbai, you can rest assured as they will provide you with advice or assistance regarding –
- Ongoing strategic decisions
- Cash investment decisions
- Merger and restructuring decisions
- Decisions related to acquisitions and growth
Furthermore, virtual CFOs can also help your business by –
- Helping you to identify the KPIs (Key Performance Indicators) of your business
- Helping you to analyze the real-time performance metrics.
- Helping you to use the results to improve the daily operations within your company and
- Helping you to understand the overall financial condition of the company through suggestions as well as necessary advice.
Virtual CFO’s role in the development of business
When a business owner hires a virtual CFO, he or she can bring their experience and expertise to the proverbial table in a bid to help the owner of a business in terms of –
- Increasing operational efficiency
- Managing cash flow, especially receivables and payables
- Making rational decisions for fundraising and fund investing
A virtual CFO, therefore, helps a business owner to ensure that their financial resources can take the company to new heights.
Conclusion
It is evident by now that in these trying times, a business needs to adopt modern ways to manage its internal operations. Hiring a virtual CFO is one such step towards changing with the times that can benefit a brand or business in more than one way. For more details, feel free to get in touch with a company in your vicinity that offers virtual CFO services in Mumbai today.