Designation of an able Chief financial officer (CFO) is one decorated position in an organization that defines the future & success of a business entity. Often recruitment of a full-time CFO is out of bounds for a company, due to the cost limitations and the liabilities it brings along.
Virtual CFO is the new doctrine, a dynamic profession that has evolved and shall define the success of upcoming & existing modern-day functioning of companies & organizations.
Understanding a Virtual CFO’s role and responsibilities:
A Virtual CFO is a professional who handles all the financial responsibilities of your organization virtually. He helps you get access to professional & experienced handling of your finances and accounts which otherwise would have been an expensive & recurring financial implication of your company.
Availing the services of a Virtual CFO is a perfect scenario wherein every company, regardless of the size, can get access to quality financial advisory services at a fraction of the cost of full-time CFO who is usually enrolled under the company payrolls.
The responsibilities shouldered by a Virtual CFO might vary depending on the type of organization you own and your nature of the business, but in general, you get the below-specialized services:
- Working discreetly & on a part-time basis, he will handle all the responsibilities of a conventional CFO.
- Make sure that the financial health of your organization is sound and shall take or advise the necessary steps to ensure that your company is on track.
- Assist you in the right decision making and address all issues and challenges which might be a roadblock to the growth process & at the same time provide the best financial insight and guidance whenever necessary.
- Handling of financial accounting activities & back-office functions like maintaining books of accounts & ledgers, Tax compliance, legalities, etc all, depending as per your requirement.
With a virtual CFO, you hire a virtual captain of your ship, who would steer your company through thick and thin, be your all-weather partner and advisor & ensure that you reach the shore safely and enjoy the sunshine.
The difference between a CFO and a virtual CFO
CFO is a salaried employee dedicated to your organization and would avail all the company benefits in terms of pay packets, bonuses, and other facilities. The hours of working are limited, and the employee would function on a particular area confined to its limitations. It has been believed that only a financially sound company can enroll a CFO to oversee its accounting procedures, control its finances, and guide the company towards profitability and powered growth. These high salaried individuals are at the top level of management of an organization and make the key decisions towards the steady growth process, new financial decisions, investments, and interests.
Whereas a Virtual CFO shall function on a dynamic platform with an ever-evolving business sense, getting you better visibility and access that can be customized exactly as per your benefits and requirements. The services of a virtual CFO are tailor made to fit your company’s needs. With a virtual CFO, your liability remains minimal and you manage to do a better job at a fraction of the cost. Unlike your CFO on your payroll, a virtual CFO may offer its services to various organizations simultaneously and shall bring with it more ideas & knowledge that might be gold for your establishment. As we say that with modern innovation, we stay UpToDate, the concept of virtual CFO works the same & keeps you Up to date with the best business practices & innovation.
The author of this article is finance professional with 20+ years of experience. If you need to reach out, do write us back at support@growiseadvisors.com