Why Virtual CFO?
The Role of CFO
Before we deliberate on the need for “Virtual CFO”, we must understand the difference between an ‘Accountant’ and ‘CFO’. Accountant & CFO have many similarities as they both deal primarily with company finances. The difference lies in the level of professional education, training and exposure that they both had through their career in finance.
In the context of a small or medium sized business an individual may be acting as CFO but designated as accountant. We must not be confused by the designation, here we are discussing the roles not individuals. From business point of view it is more important who is acting as a ‘Pro-active Business Advisor’ and who as a ‘Re-active number cruncher’.
CFO as a role implies that the person should have the quality of a strategic leader and ability to leverage ever-advancing technology to help your business unleash it’s true potential.
To illustrate the point, here is a graphic presentation of “A modern view of CFO’s office”
A Modern View of CFO’s officeWe believe that this pictorial diagram is a visual image of a building representing the CFO’s office in a large or mid-sized organization. An appropriately integrated Accounting system and well defined transaction processes are the pre-requisites for any CFO to be able to play an effective role, just like the foundation of a building determines the strength of the structure. Similarly, a good team of finance resources and in-built internal controls in the processes are like two pillars on both sides giving strength to the structure. Once the foundation is laid, the right kind of planning and reporting tools can be and must be implemented. Thus the CFO can set himself/herself in the strategic management role easily, except that he or she must be sensitive to the demand and expectations of Internal and External customers like the structure should be able to withhold the impact of winds and external forces.
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*We are unable to acknowledge and give credit to the originator as the source is not known to us. We have incorporated some changes to the original graph based upon our knowledge & experience.”
Key drivers: Quality and affordability
It is obvious that having a Full-time CFO is the ideal choice for any business, but the issue is whether the scale of operations justify the cost?!
Here are some reasons why hiring services of virtual CFO is more feasible choice for you as Small or Medium sized business ~
You get the benefit of accumulated experience and world best practices because you are dealing with a group not one individual and your Virtual CFO professionals collectively make that expertise accessible to you.
- Full time CFO might leave you at any time, you don’t need to worry about it as your Virtual CFO is a corporate entity and will remain with you as long as you want.
- Significant cost advantage (i.e. For a fraction of the cost of one having on your payroll).
“Virtual CFO is available to you 24/7, you pay only when you utilise”