01 Jul Virtual CFO – beyond number crunching

I was enjoying coffee on a relaxed Sunday after an eventful weekend. Suddenly, my phone rang and there was a call from Chandigarh. The guy on the other side mentioned – he found me on LinkedIn. “Heard you provide Virtual CFO services. What’s that?” asked the caller. The call which ran for not more than a few minutes, the guy sent me a mail for what he was looking for.

He had recently received funds from his uncle and wanted to ensure that he makes the best use of it in his business. Anyhow, I bagged the contract after another follow-up call.

The point which I wanted to highlight is – we have hit a point where the finance world is evolving faster than the most can keep up. With new challenges in managing the growing business needs, there is a need for someone who keeps us out of the trouble in finances. This new Avatar is called Virtual CFO, who offers high quality assistance to SMEs – build robust accounting systems, MIS, defines policies & procedures, manages funds, raises funds

The role of a CFO has been broadened beyond just pure numbers. The person now has to deal with various stakeholders from board of directors to shareholders, from investors to banks.

The role of a CFO has got evolved from setting up accounting teams to ensure profitability for the business. They even mentor C-Level peers and monitor the entire health of the business.

They’re also responsible for critical future functions like Corporate Strategy, fundraising, M&A.

However, the SMEs are often constrained by limited budgets, the role a Virtual CFO mushroomed keeping requirements in mind at SMEs level.

Virtual CFO also ensures general regulatory hygiene and creates a proper management information system.