What makes a financial consultancy the best & why should you care
Your business is a replica of you. Whether you are complacent or you want to push the boundaries, whether you are a laid back type or aggressive, your traits reflect your business performance.
However, the current breed of young entrepreneurs are largely driven by 2 Gs – Growth and Global. Aided by technology, they want to tread on the unknown path to carve out new opportunities, and this creates great traction for the economy.
But a dream start may end up in a great disillusionment. Business is like a snake and ladder game. One has to be prepared to circumvent the obstacles and take advantage of the situations.
There are many challenges to a startup or a growing business – managing finances, financial planning, financial reports, compliances, corporate governance, addressing strategic requirements, and so on. These aren’t the tasks responsible for direct revenue earning for the company yet they are immensely important as they shield the business from unexpected blows.
A Virtual CFO firm takes up the responsibility to provide comprehensive financial management services to the businesses of varying sizes. It’s especially ideal for MSMEs and Startups as they are often faced with burning questions like –
- How to manage the cash flow within a lean budget,
- What are the various ROC and legal compliances to be fulfilled,
- How to manage GST and TDS compliances,
- How to handle the IT return formalities,
- How to be eligible for a bank loan,
- How to get a good investor on board,
- How best the profits can be invested,
- How to extend the business to other regions, and so on.
Virtual CFO services provide all that is needed by an organization to ensure monthly financial discipline, financial analysis, financial statements, protection from various legal pitfalls, creating funds, healthy relations with banks and investors, and navigating for growth. Learn more at firstname.lastname@example.org.
How to go about selecting the right Virtual CFO firm?
Selecting the right Virtual CFO services agency for your business should be the foremost decision after you decide to start your business – many startup owners have learnt this lesson after having setbacks due to mistakes committed out of ignorance.
So it’s a vital task and definitely requires some major considerations, such as
1) Ability to assume full control of your accounting and finance needs
First thing first – it’s the proficiency and expertise. Handling finance in order to steer the company to a profitable future is a specialist’s job that requires knowledge, experience, and wisdom. A good Virtual CFO service agency should be able to
- Analyze the financial health of the company
- Play an active role in setting the company’s strategic direction and planning
- Make forecasts of the financial insights and market status
- Develop effective financial and tax strategies
- Maintain good relationships with banks and investors
- Evaluate and monitor the liabilities and investments for effective risk management
- Take part in the executive discussions, business administration and decision-making process
- Study and research the industry of the company to provide specialized advice.
- Organize the bookkeeping and accounting processes
If you already have accounting or finance staff then it requires employee management skills from the Virtual CFO as the existing staff need to be motivated to adapt to the new system. Learn more at email@example.com.
2) Good Man Management skill
Outsourcing a crucial function like finance can be a failure if your Virtual CFO services consultancy is not able to get full cooperation from the staff and important stakeholders in the organization. This requires a little extra effort initially, by the Virtual CFO to forge a friendship through mutual trust.
In other words, Your Virtual CFO should be able to completely align with your system and ethos and should be absolutely committed to securing growth of your business.
3) Other qualities
The way your Virtual CFO operates defines the forward journey of your company. Apart from competence, you should look for certain other qualities in your chosen virtual CFO service agency, as listed below, that put the odds in your favour
- Strategic thinking
- Creative or out-of-box approach
- Proactive stance
- High level of commitment
- Culturally fit and forward-looking
- High level of expertise and experience
The concept of Virtual CFO has been extremely popular in the USA, which is home to the highest number of startups in the world, due to flexibility and cost-effectiveness associated with it. Another major advantage is that the virtual CFO services can be performed almost entirely over the Internet, which eliminates physical meetings and increases speed of work.
India too is seeing a rapid growth of Virtual CFO services due to a thriving startup and MSME culture. Small companies may opt for specific services on a weekly or fortnightly basis. Even one-time help with streamlining accounting, financial processes, business planning, cash flow management, bookkeeping services budgeting, and other strategic transactions are possible. Kindly mail us to learn more at firstname.lastname@example.org.
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