The top-ranking financial advisor and controller is the CFO. They handle all matters related to cash flow, financial planning, and taxation of a company. If the company does not have an in-house Chief Financial Officer, they can choose virtual CFO services. Their primary responsibility is to manage financial data and records.
In the case of small businesses, SMEs and startups, it is difficult to appoint a CFO, because the CFO is a recognized management authority and it is out of budget for small businesses, SMEs and startups to appoint an internal CFO, in this case only appointing a virtual CFO is required.
The Virtual CFO provides the following services to help companies understand their financial capabilities and the health of the company. –
- With the help of income and financial statements, and cash flow statements, Virtual CFO Services can project Financial and Cash flow.
- The virtual CFO is responsible for understanding cash utilization and managing debtors, creditors, and other key operations indicators. This is an important factor in reducing risk.
- Virtual CFO assists in budget planning. It analyzes cash requirements and helps to balance income and expenses.
- The Virtual CFO is responsible for forecasting financial and cash flow projections. This helps to reduce wastage and implement strategies that improve productivity.
- Change the organization of the company as necessary to reduce risk and increase the number of potential opportunities.