Virtual CFO

Why do I need a Virtual CFO?

All businesses with a turnover above Rs. 100 million threshold limit need virtual CFOs to manage their finances. Such business usually fall in one of the below categories:

• You have a clearly defined vision but need the mechanism to implement it;
• Your business model works but you want to scale your business further and need expertise in doing that;
• You are confident of your exclusive business idea which you have initiated but you want it to scale up fast to avoid the copy cats to catchup up with you; or
• You simply want to outsource all the financial processes and just concentrate on the business part yourself

 

What does a Virtual CFO do?

• Compliance Management fortaxation and other financial Laws:

With the number of ever-increasing compliances, a CFO provides peace of mind so the entrepreneur can concentrate exclusively on the operational side of his business. The compliance will relate to direct taxes (Income Tax), indirect taxes (GST etc.) as well as secretarial compliance.

 

• Cashflow and Working Capital Management toidentify the bottlenecks:

It has been seen that due to mismanagement of the compliances often the credit of taxes gets blocked not only from the department’s end but also sometimes from the debtor’s end who refuses to make payment if his name does not appear in the necessary compliance returns. These and many other issues have to be foreseen and mechanisms put in place so as to ensure that cash flow is not hampered.

 

• Internal Control fora free-flowingoperation:

Any process needs regular oiling to ensure that it doesn’t get stuck at any stage. Internal control is that oil for a financial umbrella of processes which vary from the simple book keeping to analysing ratios. Putting in place self-check and double tier cross check mechanisms goes a long way in structuring a robust internal control structure.

 

• Accounting Policies and Procedures

All third parties require a set of financial records that are consistent with the Accounting Standard prescribed by national and international accounting bodies. It not only provides credibility to the financials but also makes them predictable and hence reliable.  New research papers which ultimately result in either new standards in themselves or amendments in existing standards are released every now and then. These are to be carefully followed and deliberately pursued to iron our chinks in existing practices.

 

• Inventory Management:

Inventory is easily the most mis-managed item for most businesses little realising that lost inventory is actual money lost. While some businesses are seasonal in nature, most need round the year track of inventory and their real time status. Introducing mechanical and IT procedures for stock management gives a lot of confidence to the marketing team to assure the clients of timely delivery and issues messages to the procurement team to make timely purchases.

 

• Payables and Receivables Management:

Not paying more than we owe and ensuring we receive what is due to us – within the agreed upon credit period – is a huge headache for any business. If these two are managed then half of all financial issues are taken care of. Once the receivables start accumulating it is a herculean task to reduce them to manageable levels.

Mismanagement of receivables and payables leads a business to look to outside sources for finances and it doesn’t take long before the payable – receivable – financing process becomes a vicious circle.

 

• MIS reporting and Review meetings:

Having put in place all the necessary procedural and control mechanisms, it is imperative that periodic review meetings are held – first between the Virtual CFO and the staff and then between the Board and the Virtual CFO. It creates a bottom-up flow of reporting that culminates in decisions that need to be taken to maintain the work flow and nip in the bud any issue that could otherwise have caused a bigger block.

The report meeting with the board is for the primary purpose to discuss the past financial performance of the business, the current financial standing and the proposed capital expenditures. The general direction of the business is discussed and suggestions are given to better manage the existing resources and how best to arrange for further capital from

 

Our Assurance

We provide all the above array of services and more. Our 11 partners and scores of experienced associates form a cogent and potent team to shoulder all responsibilities that any business looks for in a CFO.

You’ve come a long way pursuing your dreams. It’s time to push for them with a single-minded devotion.