Functions Of Virtual CFO Consultants | How VCFO Consultants Help Startups

October 22, 2019

5 min read

This guide talks about how virtual CFO consultants can help startups and small businesses in their financial management.

shivi

Shivi Gupta

Consultant, Gurgaon

BUSINESS ENTREPRENEURSHIP
Functions Of Virtual CFO Consultants | How VCFO Consultants Help Startups

The challenges associated with a growing startup increases as and when the business grows. Some of these challenges can be time-consuming and often require special expertise and know-how to understand in-depth, the requirements and solution to deal with them. However, there gets the point when the complexity of the problem outweighs skills and knowledge of the business owner or entrepreneur and requires the expertise of a skilled professional. One of the key areas in which a new startup faces difficulties is the management of its finances and needs the assistance of a financial assistant who can guide the top management in making key financial decisions. This guide talks about how virtual CFO consultants can help startups and small businesses in their financial management.

 

What Is A CFO Consultant?

A CFO consultant is an expert financial professional who enables and prepares entrepreneurs and startup owners in better and well informed financial decision making. A CFO consultant helps the business leaders by providing expert advice on the structuring, funding, planning, predicting, and managing the finances of a new business.

In its early stages, a startup may not have the skillset or the ability to make quick financial decisions regarding its budget, cash flow, and revenue. This is when a virtual CFO consultant comes into the picture and renders the right advice, approach and strategy. Since a virtual CFO consultant is a high-level finance and accounting professional, a new startup can gain valuable insight and expertise in planning and managing its finances in the most efficient and financially secure manner.

Benefits Of Hiring CFO Consultant

A virtual CFO consultant in India can be beneficial for a business in the following ways: 

  1. Providing additional skills and knowledge for overall financial analysis, governance, risk assessment and investment for a business.

  2. Saving a high amount of money that otherwise goes into hiring an experienced financial professional.

  3. Providing flexibility and better time management.

  4. On-call financial assistance.

Functions Of A CFO Consultant

Financial Reporting

A CFO consultant can provide the right strategy and method for accurate financial reporting. This way, the business can record its assets and liabilities in the balance sheet without any errors or omissions. Efficient financial reporting can help a business in protecting and planning its finances for the next financial year and overseeing the areas of the business that generate less revenue as compare to the other business areas.

Developing Internal Control

Small businesses often face the issue of inefficient internal control due to lack of a strong hierarchical structure. A virtual CFO consultant can help the business owner in pinpointing the weaker sections in the internal control mechanism and establishing a reliable internal control over the finances of the startup. A CFO consultant can do this by suggesting the best practices of financial management following the requirements of a business. This, in turn, increases the operational efficiency within the organisation without affecting the larger picture.

Laying Down Financial Foundation

A CFO consultant can assist the business owners in identifying its performing assets and the channels to increase the viability and value of these assets. This help in laying down a strong financial foundation of the business, which is vital for the overall success of the organisation. Without substantial financial foundation, a new business may get buried under a financial crunch it may face and eventually run out of cash before it can even cross its initial stages.

ALSO READ: 7 Tips To Manage The Financial Health Of A Startup

Focus On The Bigger Picture

Once a startup starts growing, the top management is expected to and ensure the depart department of the organisation have the same vision and are able to deal with the challenges and problems of the startup in a synergised manner. A CFO consultant can provide the right guidance for coping with finance-related issues such as payroll, bookkeeping, HR, product development costs, etc. and increase the functional efficiency at an overall low cost. This can help the entrepreneur in focussing on the bigger picture that involves scaling and expansion rather than small internal affairs.

Increasing Business Revenue

The most essential function of a virtual CFO consultant for a startup is suggesting the ways to increase revenue and reduce the expenditure as much as possible. A virtual Chief Financial Officer consultant assist business owners not only by suggesting the right channels to bring money in the organisation but also advising on the best ways to reduce the channels that draw cash out of the business.

How To Find The Right CFO Consultant?

Finding the right consultant is critical for a startup because consulting a financial professional is a huge investment in the financial success of the business. Finding the consultant who is able to understand the needs of a business and the queries faced by the entrepreneur can be difficult when the entrepreneur is not sure about what they are looking for in a consultant.

A CFO consultant must be able to understand the financial strengths and weaknesses of a startup and must have extensive experience in providing the best financial solutions to startup owners. 

To make finding CFO consultants in India easier, SeekWiser connects startups and small businesses with the best business consultants near them with a simple phone call. Startups can consult top financial consultants for their financial issues by giving a call at +91-7827886239 or sending a simple email about their query at support@seekwiser.com