17 Feb Virtual CFO Concept

Virtual CFO Concept

Meaning

Virtual CFO as the name stands for Virtual Chief Financial officer, who is an outsourced person or firm or company and works as Chief Financial officer.

Services offered

• Administrative Operations
• Financial Operations
• Risk Management Operations
• Development of a financial Strategy
• Monitoring of Control System
• Reporting of Accurate Financial Result

Since the common clientele of a Virtual CFO are small businesses and startups, there are certain more services that are expected of them. Virtual CFO is expected to be the bookkeeper of the client and has to take responsibility for the accuracy of the account books and interpret the financial information from the accounting data to the client.

Need

Approximate 80% of the Accounting done by the people who do not have professional degree and expertise to meet the demand as required by the equity owners. As owner wanted some value addition with regard to their current process and make them more profitable.

Laws are changing rapidly and it’s not possible for the un-organized and unqualified people to get them updated.

Virtual CFO opens the platform for the owners to have qualified and updated professional who can take the responsibility of compliances and process management.

Qualification

To become Virtual CFO and help businesses as a freelancer one should have some professional qualification and Industry experience. CA/CPA/MBA with premier Institute will be mandatory qualification and experience of Industry for not less than 5-7 years is required.

Client Management

As an Individual one Virtual CFO can manage 4-5 SME’s at a time perfectly. One visit per week is must with client interaction and reporting. The number of client may be increased or decreased with the involvement factor with the client.

Author-Author of this article is CA Ankur Kapil practicing Chartered Accountant having more than ten years of experience. He can be reached at ankurkapilca@gmail.com