VIRTUAL CFO SERVICES

Virtual CFO service is a model where the service provider meets the client initially for understanding the process and skill set of the finance team and the expectation of the management .
After studying that the improvements are suggested and implemented through the finance team .Some of the challenges where we can help are

• What should be the Ideal Chart of Accounts and Profit Centre and Cost Centre to capture the financial transactions in details for understanding the good , average and bad part for taking the necccessary actions.
• How should the transactions with a foreign subsidiary be priced so that they are at arm's length .
• How do you recommend charting owner's compensation when there are multiple owners that are also part of marketing and production?
• How do you preserve cash raised and do not increase the spend in new projects without stabilizing the returns from the existing ones or stopping the failed one and only then replacing them with new ones utilizing higher cash also if need be
• To assess the various parts of costs in terms of direct cost and indirect cost and see what are the costs which can be outsourced so that they are flexible and generally cheaper also
• In the quest for increasing revenue how much discount is something which keeps the operating margin at a healthy level so that when there are volumes as per expectations the operating profit is able to take care of fixed costs to achieve zero cash outflow and then growth from there will make it profitable
• To fnd out the various incentives and benefits available and get the same etc,

How Does It Work?

The model can be in three ways

• TRANSACTIONAL - tax returns, strategic planning and forecasting , Fund raise
• CONTROLLER - above, +handling accounts payable & receivable, +more detailed forecasting
• VIRTUAL CFO - above, +bank/financing relationships, +KPI tracking
• There would be participation in the weekly meetings either in person or VC or Audio etc where the cash flow update , Accounts Receivable , Invoicing and any other updates shall be provided Joining these regular meetings also gives a good understanding of the company and culture, and helps in staying up-to-date on current events.

We are available anytime during the month for questions, calls, impromptu meetings, etc. However we find that this schedule works best for most clients, but it is definetly tailored to fit each client.

Virtual CFO service:

• More time to focus on new services, new customers and other core business issues.
• Better understanding of the financial side of your business, so you have fewer surprises and more control over the money.
• Improved decision-making capabilities from clearly seeing the hard and true numbers of your business. The clients typically meet with the Virtual CFOs on a weekly/fortnight basis with a one-hour predetermined weekly meeting.
• A readily available sounding board to help you with those tough business decisions and help you clarify your business plans. No questions are off limits.
• The comfort from knowing that a professional is overseeing, protecting and constantly improving the financial side of your business.
• A professional who establishes strong financial controls in your business to reduce employee theft and increase profits.
• Training and managing your accounting staff. We can be your back office staff, or we can manage your staff for you.
• Improved quality and timeliness of financial information. All financial reports and Key Performance Indicators (KPIs) are presented prior to the 15th day of the closing of the month.
• Budget preparation and monitoring are performed by the Virtual CFO on a monthly basis. Forecasts are updated to reflect how actual results impacted them.
• Profitability analysis by service or product line. Which products should you focus our sales efforts on? Where should you increase your margins?
• Tax planning is extremely important for a growing business. The Virtual CFO monitors your tax situation to ensure funds are set aside for taxes, quarterly payments are made, and there are no surprises at tax time.

Also other important areas may be

• Cash management, the key to financial success.
• Trend analysis. 
• Assistance in defining long-range plans and the quantification of goals.
• Liaison with bankers, attorneys, vendors, insurance agents, etc.
• Assistance in obtaining financing from banks, including assistance with negotiations.
• Review/negotiation of insurance policies.
• Development of company accounting procedure manuals.
• Analysis of equipment purchases, expansions, etc.
• Mergers and acquisitions assistance
• Custom designed collection policies and procedure

If there are any questions or assistance please feel free to write to me on mjjwala@gmail.com or on 93234 32262