Virtual CFO Services in USA

Posted by blueskyaccounting on March 22nd, 2020

Virtual CFO refers to an “Outsourced CFO”. Big Firms often own a  Chief Finanical Officer to gain advice regarding financial issues. Start ups or small and medium sized businesses are not financially equipped enough to own one, like them. Besides, if the finances even allow them to do so, they are not in favour of having a full time CFO. They don’t want to employ someone whose performance they can’t judge due to the lack of experience. The preferred option they go for is of Virtual CFO Services i.e. Virtual Chief Financial Officer Services.

What is Virtual CFO?

Virtual CFO serves as a bridge for the organizations that seek high-level financial advice but are not willing to employ a full time chief financial officer.

VCFO or outsourced CFO streamlines the accounting functions of a firm and carries out basic reporting that acknowledges the owner about the performance of his business. They tend to enhance the growth rate of your business, save your time while strategizing and provide an expert exit strategy whenever required.

A VCFO can provide your existing staff with expert advice in areas like accounting and sales. They can also evaluate the staff and guide an organization while planning future strategies.

Which services does Virtual CFO or Outsourced CFO provide?  

Small Medium Business owners possess a highly compliant system where they have a book keeper and an accountant for filing tax returns in the year end. Yet they seek financial advice frequently, during the year. Virtual CFO Services are thus designed as per the needs of the business involved. The services they provide involves:

Managing and planning Cash flow: VCFOs are well acknowledged about importance of cashflow in a company’s success­­. They closely monitor the cashflow; to correctly forecast and model it thereby. They also ensure that it is implemented and updated properly. Company’s owner works with the CFO to strategize accordingly regarding the cashflow management.

Management Reporting: Outsourced CFO or Virtual CFO analyse the management processes to create a report that lets them know their performance. They make sure that their tools and systems which generate the information for reporting are properly placed. CFOs work in sync with the owners where these reports are regularly reviewed.

Expert Tax Planning: To reduce tax liability, planning it beforehand solves the purpose. Virtual CFOs assist an owner so that they can guide them through minimizing tax obligations and ensure tax compliance when the due date arrives.

Reviewing Financial Processes: For a company to function efficiently and effectively, reviewing the ongoing financial policies is necessary. Virtual CFO not only works to have an eye on them but also ensures the implementation of improvement measures thereby.

Governance and Risk Prevention: Virtual CFOs suggest effective governance and control measures to combat internal and external risks if there is any.

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