How to become an expert in business with the help of virtual CFO Services
A Chief Financial Officer (CFO) is a senior executive who has the responsibility to undertake financial activities and take financial decisions of the company. From preparing financial reports to taking investment decisions, a chief financial officer indulges in several other financial activities.
Responsibilities of Chief Financial Officer
A Chief Financial Officer has a significant role to play in a company. Every company has the primary objective of raising their finances by earning a certain amount of profits. A CFO ensures that the company fulfills all its financial goals and objectives in a limited amount of time.
Certain financial objectives of a company are as follows
Profitability is when the company is able to earn a certain amount of profit.
Liquidity is the ability of the company to convert their current and non-current assets into cash. It refers to the company’s capability to meet its short tem obligations.
Efficiency is the ability to avoid excessive use of energy, money, efforts that could lead to their waste which would eventually result in company incurring a loss.
Stability is the state of being resistant to change and not prone to fluctuations.
Certain duties of a chief financial officer are as follows –
- Financial planning
- Cash flow tracking of the company
- Evaluation of financial strengths and weaknesses
- Recommending actions to improve financial discrepancies
Chief Financial Officer Services
Chief Financial Officer (CFO) services generate a budget and financial estimates so that the company is presented with the most accurate financial information on the basis of which the company can take appropriate actions. CFO support services offered by a CFO are as follows –
- Enhances the financial position of the company
- Evaluation of the financial reports
- Assign the company in several projects and plans
- Assessment of financial systems
- Ensure that the financial system of the company is strong and effective
- Cost management
- Working capital management
- Inventory management
- Cash outflow
- Annual reporting
- Management reporting
Modern Chief Financial Officer
A modern chief financial officer is an individual that understands various business models, strategies and future opportunities of the business and recommends corrective actions.
Role of a modern CFO
A modern CFO plays several roles in a company. He understands, studies all the viewpoints and explores innovative strategies that could benefit the organization. Strategic advisor, Innovative technologist, executive, decision maker and leader are some roles that a modern CFO plays in large corporations.
From providing essential advices to giving appropriate suggestions to the management, a modern CFO is a strategic advisor,
CFOs utilize the latest and updated technology that aligns well with their work and helps in the creation of strategies in an efficient manner, hence they are known as innovative technologist.
An executive, decision maker and a leader are names given to only modern CFOs, as they play a key role in executing financial plans an policies, assesses and analyze risks associated with various plans and strategies. They lead the financial management and help them accomplish their financial goals and objectives.
Outsourced Chief Financial Officer (CFO)
The term ‘Outsourced’ means to obtain a service from an outside supplier. An outsourced CFO is a financial expert who provides financial services for a temporary time period. An outsourced CFO proves to be beneficial to resolve company’s financial issues such as solving tight margins, solving cash flow issues, raising capital and preparing for financial growth etc.
Purpose of Outsourcing
- Gain access to capabilities of other companies
- Utilization of internal resources are done for other purposes
- Increases business efficiency
- Better risk management
- Better focus on core activities
Virtual Chief Financial Officer Services
A virtual CFO is an outsourced service provider who offers high skill assistance to fulfill financial requirements of a company. They offer various benefits which is why they are considered by most businesses especially large corporations.
Benefits of Virtual Chief Financial Officer (VCFO)
- Hiring a virtual CFO helps the company to focus on other significant responsibilities and business commitments.
- The interference of a virtual CFO helps in increasing productivity.
- It saves plenty of time.
- An efficient cash flow management helps in building an efficient work flow of the business.
Benefits of Outsourced CFO Services
- Saves a lot of time
- The processing is easier especially for larger projects
- Serves a money saving tool
- Help in the reduction of fraud risk
- Helps in the creation and promotion of financial strategy
- Increases the revenue
- Generation of innovative ideas
Virtual CFO services could be the next big thing if they are utilized in a manner they must be. The importance of these services can be comprehended by looking at the range of demand from several sectors, industries and corporations, both small and large. CFO services must be considered as they provide several advantages to the management of the company and help in accomplishing all the financial objectives of the company in an effective and efficient manner.