One of the top issues keeping your business from growing the way you would like is its financial management. That is, you can’t get the numbers together to tell you where your biggest risks and opportunities are going forward, let alone the roadmap to growth and sound financial health. Your bookkeeping staff is doing a bang-up job keeping up with tax and compliance issues but just lacks the experience and knowledge to generate the kinds of reports and numbers you need to push your business to the next level and the level after that.
WHY THE COMPANIES SHOULD OPT FOR VIRTUAL CFO SERVICES
You’re even debating whether it’s time to hire a chief financial officer with experience in your industry who can start providing you and your board of directors the kind of valuable information to feed the next growth cycle. But an experienced CFO won’t come cheap, and that’s a big financial commitment for a small and growing company. What if you knew there was an alternative that could bring to the table a team of finance experts with experience in your industry for about half the cost of hiring a full-time CFO? Intrigued? So what is a CFO service, after all? In contracting with an outsourced CFO service, you’ll gain all the expertise you need and avoid the search and training time needed to bring on that one perfect CFO for your business. The Chief Financial Officer or CFO is one of the busiest executives in any organization. The CFOs traditionally leads the finance and accounting department of the organization. The CFO’s responsibility is to inform the rest of the leadership, especially the CEO, regarding the organization’s financial well-being. However, recent developments in the finance and accounting department have made the CFO an essential part of the organization in contrast to other parts of the administration and operations. Along with the Finance and Accounts Department, the CFO supports the different departments with updated data on their financial standing, internal controls, and budgetary requirements that ensure the processes run at optimal levels. Many roles are assigned to the CFO. Other finance and accounting professionals in the organization must help him perform his work better.
TYPES OF BUSINESSES LOOKING FOR CFO SERVICES
Virtually speaking, all the business owners require CFO Services along with MSME’S and growing companies
STATION WITH A CFO SERVICE / VIRTUAL CFO SERVICE
Thinking back over these issues that have brought you to this point, hiring a CFO service or Virtual CFO service offers you the best opportunity to achieve your growth goals, and to do so quickly and more economically. Consider:
- CFO Service / Virtual CFO Service will generate monthly, or even weekly, reports that are specific to your business and your current needs. The CFO service will understand your business and your industry and help design the reports so they are easy to digest for you and your board of directors, giving you the opportunity to fully understand where your business stands and where it is headed.
- A CFO Service / Virtual CFO service will oversee your current bookkeeping and controller staff to ensure all procedures have a series of checks and balances to strengthen security and present accurate financials. The CFO service also will ensure you are using the correct and most up-to-date financial software to best operate your business. While a CFO service will not directly oversee your IT department, it certainly will work with that function to put in place proper safeguards and meet the equipment and software needs of your staff. The CFO service also will make sure your company is in compliance with all financial regulations.
- A CFO Service / Virtual CFO service will generate a budget and financial projections to give you and your board the best financial information possible to make strategic decisions about your company’s future as well as the toolset to hold your team accountable for hitting your goals. These projections can also include “what if” scenarios so you can truly be a future-driven CEO and quantifiably compare the potential impact of key decisions before taking a leap on that next investment.
- You may opt to have your CFO Service / Virtual CFO service prepare you for board meetings. Regardless of whether your CFO is physically present at your board meetings, the service will help create the type of relevant financial package that will give your directors a true picture of the company. The service can also coach you, as CEO, on how to most effectively present the information to your board.
- A CFO Service / Virtual CFO service generally may or may not provide direct investor relations, but it will certainly provide the financial reports and can coach the CEO on an effective approach to presenting that information to the investor community as well.
With outsourced CFO services form Driven Insights, you’ll get everything you need, from Bookkeeping to Controller-level ownership, to CFO-level strategy. We have a seasoned team a well-oiled machine in place to deliver results right out of the gate.
VARIANT OF CHHOTA CFO
CFO services come in a variety of styles, so it’s important to find one that is familiar with and suitable for your business. These are some of the kinds of CFO services you can explore:
- Consultants: These normally are experienced CFOs who will provide short-term work with your company to set up certain procedures and reporting. They also may serve as an interim CFO for a certain project or while you are going through a transition.
- Virtual CFOs: Virtual CFO service agencies offer a more long-term solution to your financial management needs, where the agency oversees your financial staff but is not on-location nor involved in the day-to-day corporate management of your company.
- Single Source CFOs: This is a one-person operation that provides CFO services for multiple clients. You would want to make sure this individual is familiar with your specific industry and has the capacity to meet your needs if you (or another client) has an urgent, all-in project.
- Staffing Firms: These more general companies will provide you with whomever they have available, which may not be the best fit for your particular industry.
- CFO Consortiums: These are networks that provide CFO consultation services on a regional or nationwide basis.
BENEFITS OF HIRING CHHOTA CFO
While CFO services should be customized to your needs and your business, we Chhota CFO will act as CFO’s for your companies. But they generally cost about half what you would expect to spend hiring a full-time CFO when you factor in salary, benefits, retirement, taxes and other business. In comparison to a full-time CFO, a CFO Service offers various advantages, like:
- More Independence: Before hiring a full-time CFO, you must first gain a strategic perspective or input and world-class reporting from the CFO Support Services.
- All Skills and Experience is Covered: No single person can have all the required skills over time. With the help of a CFO Service, you will benefit beyond the experience of a person only as a service.
- Expertise Expands according to the need of Your Company: CFO Service will help maintain the continuity of working with the trusted resources over the long term.
- No Geographic Limitations: You can engage a service outside your region; there are no geographical boundaries set for a CFO Service.
- Save Money: Delay the idea of hiring a full-time in-house CFO and hire CFO Services. It will help you in saving cash throughout the way without compromising on financial leadership.
The new-age CFO today however becomes an important line of defense in a high-pressure transformation environment. For instance, overemphasis on accounting quarterly profits in a high-pressure work environment could result in a negative effect on cash flow. CFO being numerically savvy can raise the flag, while also highlighting if incremental profit has come on the back of a drop in credit quality. By comparing the creditworthiness of customers as well as that of its competitors, one gets an insight into it, which in turn could avoid probable NPA and losses in the long run. Similarly, by setting formal budget commitments, CFOs can facilitate organizational transformation and ensure turnaround initiatives actually get to the bottom line.