Management of finance includes one’s business accounting, expense management, financial forecasting, budgeting, strategy, process improvements, internal controls and a lot more.  All these can be a huge challenge for a company that has prospects or is growing fast and if these are areas not addressed diligently, it can result into consequences that could derail a fortune making business.

A Chief Financial Officer (CFO) for any organization is the best placed to keep strings on your business wallet than anybody else.  As a business owner, founder, director, president of your company, you would believe you have a tight grip on the finances, but it’s equally crucial to know that without the relevant financial expertise, allotting dedicated time and assuring a financial vision, you could land into a soup at some point.

So the golden question arises, how do you hire a full-time CFO, when you cannot afford one?  Gaurav J Mehta, Founder & Owner at GJM & Co. has the answer:

The idea of Virtual CFO was invented to answer that question.  A Virtual CFO operates remotely or offshore, occasionally on a full-time schedule, but operate objectively as an Outsourced Head of Finance for your business operations.  Usually, small and growing businesses benefit from engaging such Virtual CFO who have years of strategic financial experience across various industries.  An outsourcing accounting firm such as GJM & Co. is aptly placed to offer these services, since their team is equipped with people with skills and experience to take on financial reigns of any business without having to hire anybody.  In fact, many of GJM’s senior client partners perform this role effectively for our clients already.  The benefit for your business is that you can get part-time or full-time or on-demand CFO services at fraction of cost of hiring a full-time or part-time in-house CFO.

Let’s understand few key indicators you need to look up for in order to determine if you need a virtual CFO:

You need a specialized Decision Support

It is critical to arrive at informed decisions based on accurate and vetted data and CFOs have the mantle to aid that process.  Leaving things to intuition is risky and can prove costly.  Your virtual CFO makes things easier by flagging off things alone that need your focussed attention having aligned with the financial implications of your business functions.  He could also suggest corrective actions that can streamline things to keep you on path to your goals.  His job would be to enable things to be transparent and insights meaningful, enabling correct choices for your business.  A Virtual CFO often is a seasoned accountant with years of experience and the ability to pin point problems, pick solutions expeditiously and clearing the air.

Accurate Budgeting & Forecasting

A pain point for startups and fast growing small and mid-size businesses, budgeting and forecasting is crucial when it comes to entities looking to raise capital or simply put – funding.  A business needs to establish before its potential or existing investors how formidable it is on financial stand points and this requires reflection of strong understanding of your goals, budgets and future forecasts.  You may have excellent business people in the company but they may not be great at financial planning & analysis.  You may not be able to afford a full time CFO at the moment, but with an accounting firm, engaged for virtual CFO services, it would be the right option to get all the advice you need at lower costs.

Establishing Internal Controls & Processes for sustainable growth

As a company keeps growing, its finances tend to get complex, and it’s difficult for a business owner to dedicate time managing the finance function, since with increasing employees, agencies, vendors, customers, the aspect of managing your books simultaneously and reading them effectively for decision making will only be difficult.  Besides, you need the advisory on implementation of the right systems suitable to your business, as well as establish the control points.  A virtual CFO would guide you on the technology set up, controls, processes, policies, sales analysis etc. needed to manage your business volumes expertly and help you navigate in bear as well as bullish times.  For the costs at which a virtual CFO is available, it’s absolutely a win-win for even the smallest of businesses to use these services.  Enquire about our Virtual CFO services today!

Spending Diagnosis

It can many a times blow into your face, realising how your expenditures have spiralled affecting your finances significantly.  A virtual CFO would ensure clearly defined policies in place around expense management, backed with disciplined scrutiny, internal audits, controls, giving you thorough check on your outflows.  Also, it is not just about controlling expenses to curtail them, but to make sure they are channelled in the right areas to maximise your business revenues, be it a sales function or any other support function in your business.  Your business team should also feel equipped enough to spend where they need to, with the right limits ensuring it’s all within the company’s means.  You have to maintain profitability without a struggle and a CFO would aid vastly in assuring this.

Finally, a virtual CFO’s job is to incorporate best practices into a finance and accounts function of any business.  While you may not be ready right away for a permanent CFO, being a small business to justify the expense, you need to remember – you are never small to manage your finances professionally!

Reach out to us today by Scheduling a Call, to know more about our Finance & Accounts Outsourcing services.  You can also write to us for any questions at www.gjmco.com and we shall be happy to guide you into making your outsourcing decision.