Taking informed decisions is extremely important for success & sustainability of every business. Any business decision has a direct or an indirect impact on the top line & bottom line of the company. This impact is tricky to figure out as many factors work in tandem. This is where a business can use the expertise of an on-demand CFO service who can guide the business to take well informed decisions which are backed by data & facts. A Virtual CFO can give an exact cost benefit analysis of any business decision, hence improving the efficiency of a business and being a catalyst for business growth.
Hiring a virtual CFO can revolutionize business of a SME or a Start-up, it can prove to be a game-changer for most of them. Having a Virtual CFO on board helps a business to concentrate on its core operations and leave the non-core functions of financial management & decision making to professional is a master of this domain.
The advent of gig economy has made highly professional services & expertise of a CFO available to small businesses & start-ups, which was unheard of a decade ago. Hiring a CFO is no more limited to giant corporates & large organisations, it has become as easy as hiring an Uber.
Before moving on to roles of a Virtual CFO in your business let us understand everything a virtual CFO is not. A virtual CFO is not a traditional finance professional with a team of accountants, he/ she is not a corporate advisor or an entity providing CA services.
A virtual CFO is responsible for ensuring that your business maximises its financial advantages and minimises its financial risk.
A virtual CFO would look beyond the numbers and help the business owners understand their financial information, so they can make informed decisions.
An on-demand CFO adds credibility to the company and gives stakeholders confidence when someone independent is overviewing financial running of the company.
How will a virtual CFO aid your business?
- Management and dashboard reporting
Setting up a systems or tools in place to give a financial view of how the business is performing, including dashboard reporting, defining key performance indicators (KPIs) to measure performance, which is regularly reviewed with the owner.
- Cash flow management & reporting
Cash flow is the most critical part of success in a business. Virtual CFO will help to implement, update and monitor cash flow forecasting and modelling.
- Finance process reviews
Review current finance processes and policies and advising on the same is done by the virtual CFO.
- Budget and forecasting
Helping business owners ensure that their budgets drive towards the future direction and goals of the business.
The meteoric rise of start-ups & SMEs in India over a last few years, has created a huge demand for virtual CFO or on demand CFO services. CFO Bridge is one such organisation that is helping SMEs and start-ups across sectors to grow and meet their business goals.