What are the virtual CFO services?

What are the virtual CFO services?

Managing of finance is something very important for the success and the smooth running of any business entity. If there is mismanagement of finance the entire business operations will be affected and this will have drastic impact of the business as a whole.

It is therefore important to hire a professional Chief finance officer (CFO) to manage the financial actions of your company. The main job of a dedicated CFO is to optimize the financial performance of a company, including preparing the financial reports, budget and monitors incomes and expenses and many more finance related matters.

However, given the huge costs of hiring a full time CFO many small and medium business organizations are reluctant to have one such post for their business. Here comes the role of professional virtual CFO services to play.

A virtual CFO is a person or business that offers the services of the CFO but does remotely through phone calls and video conferences and on a part-time basis. This allows the business organizations to avail the benefits of having a CFO without having to bear the burden of paying huge charges as in case of having a full time CFO. Here are some of the noteworthy benefits of hiring dedicated virtual CFO services for your company: 1. Better controls: Most of the small firms lack the delegation of duties. Often it is a one man show with, one person managing all of the finance related matters. This situation can lead to fraud or theft. Hiring a virtual CFO to look into finance matters will help avoid the fraudulent practices and will give you a peace of mind and minimizes the risk of loses because of misappropriation of funds or fraud in finance related matters.

2. Increases flow of cash: A good virtual CFO not only helps in managing the business finance but also will provide an expert advice to help with cash improvement programs. The CFO will provide you with the inputs to help you increase the cash flow of your business and help you raise funds in case required.

3. Help with the taxes: Taxes are complex matters most of the times beyond the understanding of the common business man. It is important for every businessman to adhere to the tax rules and obligations and file the returns within the stipulated time period to avoid penalties. Also tax rules and regulations are bound to change.

An experienced virtual CFO can help the business entity by filing the tax returns within the stipulated time period and by handling all the tax matters.

4. More accurate financial statements: A CFO can prepare accurate financials for you. Accurate financial statement can give you a clear picture of the financial standing of your business and also help you avail finance from the investors, for the lenders have clear information of your financial standing.

An experienced virtual CFO not only helps the business organizations with finance related matters but also streamlines their finance operations. A professional virtual CFO is the blend of practical knowledge, cloud accounting concept, mobile technology and modern data analytics, thus provide great benefits to your business.