Concept of Virtual CFO Service in India

Concept of Virtual CFO Service in Delhi/NCR

• It is rightly said that crisis also opens up new opportunities. The pandemic has taught us to manage things through the best available resources. The role of CFO is a full time job in an organization and good funds are required to avail such services.
• The CFO on the board of the company helps the company to be financially sound, improve profitability, cost control, improve financial literacy in the organization, tax management, formulation of SOPS and financial policies, in alignment with the mission and vision of the company.
• Most small-sized companies cannot afford to hire a CFO. To meet the need of CFO in such company, the concept of Virtual CFO has emerged.
• Virtual CFOs may not be available physically but their wisdom, advice and guidance is always available. In the lock down period during COVID 19,
• You can also get in touch with a virtual CFO to get specialized services like preparation of project reports. Profitability analysis, break even analysis, credit planning, MIS reporting, SOPs and internal controls and other financial services.

Why Small and Medium Sized Company Go for Virtual CFO Services

• • A CFO is a part of an organization’s leadership team whose primary responsibilities include providing professional advice, managing financial risks, financial reporting, taxation, compliance, fund flow management, budget preparation and record keeping.
  • They can also help in reconciliation of input credit with GSTR 2, 3B and Book, they can help in tax planning and tax management.
  • They can also help in timely and proper reply to various notices received from tax departments.
  • company law: All compliance and advice relating to company law matters can be provided by your Virtual CFO.
  • In the current tax scenario, there are huge penalty cost consequences for filing wrong returns/forms or not complying with legal issues on time.
  • We have realized the importance and connectedness of a virtual CFO in saving our business from financial woes. Therefore, Virtual CFO and his team can provide expert and professional service at an affordable cost.
  • By hiring a virtual CFO, the company especially the MSME unit benefits by saving the fixed heavy cost of hiring a full time CFO and providing the CEO time to focus on the core business.
  • The company has the option of either appointing a CFO and setting up a full-fledged accounting and taxation department or going for a virtual CFO with a small team of 1-2 persons in the accounting department.
  • It is always beneficial for start-up company and small and medium sized company to go for virtual CFO services as it helps in reducing the manpower and installation cost in the initial years of operation and allows them to focus on growth and development. Saves a lot of time for the top management. The business.
  • Secondly, it helps in getting timely expert guidance for compliance under various commercial law, labor law, tax law and corporate law.

CFO Services for Small and Medium Sized Organization

• For small and medium sized organization, hiring a full time CFO is a luxury due to limited funds. The concept of Virtual CFO comes into picture to provide CFO services to Micro, Small and Medium Enterprises (MSMEs) on part time basis at reasonable cost.
• MSME is a relatively small organization and where timely availability of funds and its proper utilization is extremely challenging for survival and success in the long run.
• The present central government has introduced various schemes and exemptions to MSME unit for nurturing and development of industries under ‘Atmanirbhar Bharat’ and ‘Make in India’ initiative.
• MSMEs have gained tremendous recognition and as a result, there have been several economic and financial reforms in the form of availability of easy and collateral free loans at affordable interest rates and participation in share capital on a selective basis.

• Compliance is one of the basic services provided by your Virtual CFO, which enables your business to timely comply with the necessary legal requirements as per all the latest provisions under Income Tax Act, Companies Act, GST, Business Tax Act etc. Is.
• Precise and timely preparation of financials helps the management to check the health of the business and is the basis for timely decision making by the top management.

CFO Services Solution Following Services

A virtual CFO service provider may provide the following services:

1. 1. Accounting and Bookkeeping Services
   2. Taxation Services – Income Tax, GST, Professional Tax
   3. company law compliance
   4. preparing financial statements
   5. Monthly reporting and MIS
   6. cash flow forecasting and budgeting
   7. Other Miscellaneous Services

• In the current business monitoring era, financial statements are evaluated and prepared monthly as part of monthly reporting to management.
• The Virtual CFO can help with the development of an in house team over a long period of time by sharing knowledge and awareness of tax laws, accounting remedies and compliance under tax law and commercial law.
• In the present scenario, accurate accounting in real time in line with tax laws is essential for the company to avoid penal charges in case of non-compliance.
• It is better to be aware and alert on time to avoid unnecessary tax compliance cost by filing monthly, quarterly and annual tax returns, by timely and accurate tax submission, taking correct input tax credit under GST.

Cash Flow and CFO Services

• Cash is the blood of business. Book profit is not relevant unless it is converted into cash. Preparing for cash flow on monthly and weekly basis requires a lot of business knowledge.
• Cash flow analysis helps the management to know the fund requirement for normal business and additional funds for certain projects/expansion or capital expenditure. It helps in taking action for timely arrangement of funds.
• Virtual CFO can help you prepare financial statements like profit and loss statement, balance sheet and cash flow statement as per Companies Act and Indian Accounting Standard.
• The main job of CFO is to meet the requirement of funds for the company and arrange it from bankers or financial institution. Proper management and use of funds requires financial acumen, a deep understanding of business and knowledge of government policies. It really is a specialist job and this is where the CFO or Chief Financial Officer steps into the picture.
• The small business owner is generally not aware of the tax law and corporate involvement and influence in day to day decision making.
• There is always the risk of non-compliance due to a wrong decision which may cost more by paying higher taxes, interest and penalties.

For more information about above services you can contact us here singh@carajput.com or @9811322785 . arrive at