Taking informed decisions is extremely important for the success & sustainability of every business. Any business decision has a direct or indirect impact on the company’s top line & bottom line. 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 make well-informed decisions that are backed by data & facts. A Virtual CFO can give a detailed cost-benefit analysis of any business decision, hence improving the efficiency of a business and becoming a catalyst for business growth.
Hiring a virtual CFO can revolutionize the business of an 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 concentrate on its core operations and leave the non-core functions of financial management & decision making to a professional who is a master of this domain.
The advent of the gig economy has made highly professional services & the 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 organizations. It has become as easy as hiring an Uber.
Before moving on to the 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. They are not a corporate advisor or an entity providing CA services.
A virtual CFO is responsible for ensuring that your business maximizes its financial advantages and minimizes its financial risk.
A virtual CFO would look beyond the numbers and help the business owners understand their financial information to make informed decisions.
An on-demand CFO adds credibility to the company and gives stakeholders confidence when someone independent is overviewing the financial running of the company.
How will a virtual CFO aid your business?
Management and Dashboard Reporting
The Virtual CFO will set up systems or tools to give a financial view of how the business is performing, including dashboard reporting and defining key performance indicators (KPIs) to measure performance, regularly reviewed with the owner.
- Cash Flow Management & Reporting
Cash Flow is the most critical part of success in a business. A Virtual CFO will help implement, update and monitor cash flow forecasting and modeling.
- Finance Process Reviews
The Shared CFO will review current finance processes and policies and advise on the same.
- Budget and Forecasting
The Virtual CFO will help 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 has created a massive demand for virtual CFO or on-demand CFO services over the last few years. CFO Bridge is one such organization helping SMEs and start-ups across sectors grow and meet their business goals.