Virtual CFO: A New Trend in MarketPosted by Enterslice on February 6th, 2019 What is meant by Virtual CFO? CFO is one of the KMP in a company as per companies act 2013, this being of the position at the top position comes with the high cost. For small companies or start-ups filling up this post will not be an easy, as the cost will be the biggest constraint, but at the same time this position is very vital and cannot be avoided at any cost the company. The situation gets worse when there is an unexpected vacancy at this position, wherein finding a suitable person that too urgently gets a very difficult task. However, this situation can be handled with the help of virtual CFO. Virtual CFO are the qualified financial person, apt for the post of CFO and capable of handling and providing all kind of financial support, compliance and governance work-related support and other such financial services to the concerned organization who shall not be actually physically present in your company premises but shall be handling all your work virtually and remotely. What all work a virtual CFO can handle?
What are the drawbacks of virtual CFO?
Benefits of Virtual CFO
Appointment of Virtual CFO CFO being one of KMP, it is usually advised that CFO must be taken on rolls of the company, however, the appointment could be contractual, fixed term or as decided by the company. Will keeping an accountant will suffice and hold out the necessity of keeping a CFO or virtual CFO? Accountants are usually engaged in the taxation and data preparation for their business. Almost every business needs one. However, if you’re more in need of someone that can advise on finance at a business level, also managing the books, providing performance management and other essential financial functions, then a VCFO might be the way to go. Accountants are tax specialists, whereas Virtual CFOs are business specialists as well. Conclusions VCFO is the most effective tool for small, mid-sized companies or entities, to take care of their finance, cost, accounts, and other related activities. It also allows company management to focus on their core activity, at the same time it fits into very well in budget. As nowadays it is in practice in many companies and is doing well, also there is a considerable amount of enhancement in practice of VCFO in many companies. At a practical level there is no difference in services of CFO and VCFO, rather VCFO can be hired at low cost hence it having a VCFO for your company is a good decision. Like it? Share it!More by this author |