What Is a Virtual CFO, And How Can They Help Your Startup Succeed?

If the business does not have its own finance department, it can outsource the role to another company. Aside from that, the company can use Virtual CFO services. Services for a Virtual CFO might be provided remotely or through an outside consultant. Businesses must adapt to changing circumstances as a result of digitization. Some firms, such as start-ups and small businesses, may not have the financial wherewithal to engage an in-house CFO (CFO). As a result, these companies would hire a Virtual CFO.

The role of the CFO has become increasingly difficult as a result of digitization. In today’s competitive climate, a CFO must possess the necessary abilities to perform financial, managerial, and business functions. A chartered accountant is required in any organization, and the CA is accountable for the organization’s financial functions.

What are the benefits of using a Virtual CFO Service?

The corporate climate has become more competitive as a result of digital challenges. As a result, Virtual CFO services are critical. Using Virtual CFO services has a number of benefits. The benefits of employing these services are as follows.

1. Integration

The firm would benefit from technological integration if it used Virtual CFO services. Virtual CFO organizations leverage cutting-edge technology like artificial intelligence, data analytics, and big data to improve the compliance process. This procedure allows for accounting conformity to be maintained. Aside from that, a company that uses Virtual CFO services can get quick updates on compliance requirements. To provide seamless services, our CFO services use cutting-edge technologies like artificial intelligence and data analytics.

2. Financial forecasts

Financial estimates and budgetary analyses would be available to a company that used these services. The services provided would assist the organization in forecasting its budgets and finances. Prediction technology, such as predictive analytics, would be used as part of our services to safeguard your company’s finances.

3. Accounting Regulations

Using this solution would provide the organization with the added benefit of accounting system compliance. In India, an organization must comply with a variety of regulatory bodies. The Income Tax Authorities, the Institute of Chartered Accountants of India, the Ministry of Corporate Affairs, the Securities and Exchange Board of India, and the Securities and Exchange Board of India are among them.

Using Virtual CFO services ensures that not only is your company’s accounting in order but also that it is in accordance with the applicable regulatory bodies. Using our services will keep you up to speed on the various compliances that your company must adhere to.

4. Controlling the Budget

Using this service will also allow you to keep track of your spending. Every company has a set budget that is used to carry out various tasks. Our team of experts, including CAs, CMAs, and CSs, will create and prepare a budgetary report that meets your organization’s needs. As part of this service, your organization will receive a detailed report on budgetary analysis and reporting. This is something that a traditional CFO cannot provide.

Finaccountants Provides Virtual CFO Services

Our services at Finaccountants will ensure that you receive high-quality services that offer the most value to your company. We make certain that the services we give are of the highest quality. Our Virtual CFO service will ensure that your organization’s financial resources are managed to the best of their capacity.

This solution will not only improve the capabilities of your financial functions but will also give your firm total technical, administrative, and management support. The following services are offered as a part of our Virtual CFO package:

1. Compliance with the Goods and Services Tax

For GST compliance, all firms that provide services must register with the appropriate authority. The following services will be included as part of the Virtual CFO package under GST Compliance:

• Compliance with the applicable GST rates for a variety of services provided by your company.
• How to use the HSN Code for various items and services (Unique Generated Code).
• Your firm must meet certain criteria in order to be eligible for GST registration.
• Documents needed to register for GST.
• In the event that there is a discrepancy, GST Reconciliation Services are available.
• Compliance with the Electronic Way Bill (e-Way Bill).
• Calculate and comply with tax credits.
• Compliance with the Letter of Undertaking (LUT) application in the case of goods export.
• Under the GST, there are different types of appeals systems.
• Procedure for GST Refund.

2. Compliance with Tax Deducted at Source

When an individual or an entity makes payments, the payee must pay the tax deducted at the source if the threshold exceeds a certain amount. When this is done, it must be done in accordance with the rules of the Income Tax Act of 1961. The following TDS compliance would be included in our Virtual C0FO package:

• TDS general guidelines are followed.
• TDS regulations calculation and interpretation
• Notification of TDS payments made by the payee in a timely manner.
• Providing support for the TDS portal’s payment system.
• Returns are filed on a quarterly basis.
• Compliance with Form 16/Form 16A.
• TDS provides reconciliation services via Form 26A.

3. Services for Human Resources

Accounting and financial services aren’t enough for today’s CFOs. As a result, CFOs must take an active role in the organization’s primary activities. We also provide HR services for your organization’s finance and business functions as part of our Virtual CFO package. The following services will be provided by us:

• Payroll assistance at all levels of your firm.
• Contractual agreements between the company and its employees, executive agreements, and non-compete clauses are all examples of agreements that are commonly utilized during the post-termination period.
• Policies affecting employment.
• Policies that apply to the organization’s top management leaders. Non-compete agreements, garden leave clauses, restriction covenants, and blue pencil clauses are examples of such clauses.
• Agreements for the outsourcing of human resources services for your company.
• Different labor laws, such as the Industrial Disputes Act, Workmen Compensation Act, and Shops and Establishments Act, must be followed.
• Work relating to human resources at all levels of the company’s management.
• Documentation support for firm HR policies, handbooks, exit clauses, employment terms and conditions, and so on.
• Non-disclosure agreements (NDAs), often known as confidentiality agreements, are agreements that protect secret information and highly private information.

4. Filing of ITR

Every individual or business with taxable income is required to file an income tax return. The Income Tax Act of 1961, as well as the entity’s specific income tax laws, govern income tax filing. The following services would be included in the Virtual CFO package at Finaccountants:

• The Income Tax Act of 1961 is used to ensure compliance.
• Companies must file their income tax returns on time.
• Assisting with the filing of tax returns for businesses at the appropriate rates.
• Tax Returns Calculation
• Form 26AS is used to complete the income tax reconciliation process.
• If your company qualifies, you can get a more advanced tax calculation.

5. Registrar of Companies (ROC) Compliance 

When a company is founded, it must meet the Registrar of Companies’ standards. Entities, too, must file specific returns with the ROC. Finaccountants provides the following services under ROC compliance as part of its Virtual CFO package:

• Filling up financial statements with the Registrar of Companies on an annual basis.
• Ensure that the meeting’s minutes are taken in accordance with the rules.
• Compliance with Knows Your Client (KYC) for Directors.
• Assisting in the preparation of corporate board resolutions.
• Secretary of the Company for Services and Support Functions.

6. Legal Assistance Services

Different types of legal compliance services would be supplied as part of the Virtual package that we offer. The services that would be provided are as follows:

• The procedure for forming a distinct type of corporate entity.
• ROC Observance of the law
• Legal contracts and other policies are examined.
• Distribution Agreements, Master Service Agreements, Franchising Agreements, and Leasing Agreements are all examples of service-level agreements.
• Assistance with appeals and lawsuits.
• Contracting with various entities requires the use of legal templates.

Reporting from the Management Information System (MIS Reporting)

The process of providing a report to an organization’s management is known as MIS reporting. This aids management in making decisions that will have a long-term impact on the firm. MIS reporting is typically an online process of reporting that has an impact on the organization’s important decisions. When it comes to MIS, Finaccountants will provide a full report. FinAccountants are responsible for the following reporting:

• Reports on the Budget
• Forecasting the financial situation.
• Creating the reports and verifying that they are compliant.
• Reports are analyzed using spreadsheets.

1. Bookkeeping Services

The daily recording of financial transactions is referred to as bookkeeping. This is done by a company to figure out how many purchases, sales, inventory, and supplies it has. Finaccountants provides bookkeeping services tailored to your company’s needs. The following types of bookkeeping services are available from us:

• Ledger management is a term that refers to the management of ledgers.
• Accounts Management.
• Rectifying.
• Tallying.

2. Services for Payables Management

When one organization owes money to another, and the payments aren’t made, the debt becomes a debt to the organization. The distribution and management of payables for an organization are referred to as payables management. The following are examples of what this would entail:

• Allocation of Various Types of Expenses
• Organizing the precedence of different types of debts.
• Creditors are being negotiated with.

3. Interim Chief Financial Officer

Our Interim CFOs are the professionals who help you keep an extra eye on managing your finances along with your internal team. Our team brings out new ideas and thoughts to your business expansion, during the transition and provides guidance to smoothen your finances. 

4. Accounting and Finance

We will also manage your organization’s finances as part of our service. The following financial management services are available from us:

• The company’s financial management.
• Creating a Report is a process that requires a lot of time and effort.

5. Corporate Governance 

Transparency among an organization’s various stakeholders is referred to as corporate governance. The directors, stockholders, and customers of the company are among the organization’s stakeholders. As part of the Virtual CFO package, Finaccountants provides the following governance services:

• The Governance Framework is being implemented.
• Assisting in the clarification of the roles of executive and non-executive directors.

Conclusion

Because of technological improvements, smart working environments with real-time functionality are now available. The CFO’s expectations were able to reach new heights because of innovative technology implementations. Connecting with a seasoned financial advisor, such as FinAccountants, can assist you in making rapid, adaptable judgments.