Virtual CFO Service-A Smart Choice for the MSMEs

Virtual CFO Service-A Smart Choice for the MSMEs

We have been driven to the brink of no return owing to COVID-19, where there is only a steep ravine. The decision now is whether to stop there rather than try to go through the obstacle.

Through the INR 20 lakh crore Atma Nirbhar Bharat program, the Indian government rose to the situation at this pivotal time to boost our hope and confidence. To change the course of events, we need a lot of determination and willpower. That is exactly what the Atma Nirbhar Bharat bundle has offered.

The pandemic's projected major upheaval of the worldwide economic order is what the Indian government recognized and used to develop this package of reformative and incentive-based policies to take advantage of the circumstance. A particular emphasis has been placed on virtual CFO services for MSMEs, or micro, small, and medium-sized firms, which make up a significant portion of the production and service segments of the Indian economy. Given that the government has unlocked all level crossovers to allow for a quick operation of the MSME train, the post-COVID period is anticipated to become the golden age of MSME in the nation.

The government has also expanded the definition of the word MSME or virtual CFO services for MSMEs and changed its eligibility requirements to support all forms of micro, small, as well as medium-sized businesses in the nation.

The era of virtual services

Owing to the recent quick advancement in digital technology, which came to our aid during this challenging period, a new frontier known as virtual services has recently opened as both private life and professional are being disturbed by social isolation and home detention.

A virtual service seems to be the same (or better) service that was previously offered from a physical location but is now accessible virtually through an application. Since users find these applications to be convenient, adaptable, and thorough, they have abruptly become the norm.

We are propelled into a new period in the history of human growth as the COVID storm sweeps away traditional thinking and inertia. Our creative minds came up with similarly amazing ways to get over the pandemic's formidable obstacle of destroying our way of life. The era of online services has arrived.

The creation of virtual analogues of many services offered over the Internet, which are just as productive and eliminate the need for face-to-face interactions between customers and service providers, was sparked by the growth of digital technology. 

The virtual CFO (Chief Financial Officer), which also provides a wide range of financial providers on the cloud, is indeed a good perfect example of the same.

Virtual CFO (Chief Financial Officer)  and MSME

Micro, small, as well as medium-sized enterprises, or MSMEs, may focus on their core activities while the virtual CFO (Chief Financial Officer)  needs to take care of their economic well-being. Let us just start by defining what a CFO for MSMEs does.

Every professional body's ability to develop depends on effective financial management. Every action the firm performs has an impact on its cash flow, from the registration period to the early fledgling stage and finally to the advanced phases of the business lifecycle. Furthermore, having an experienced CFO (Chief Financial Officer)  on the executive team is crucial for firms. 

Because of this, being a CFO (Chief Financial Officer) seems to be a very difficult job that has an impact on a company's performance through effective management of the financial as well as financial reporting aspects. As a member of the upper executives, the CFO's (Chief Financial Officer)  main duties include risk governance, financial monitoring, and record-keeping.

Poor financial management is the main reason why many micro and smaller businesses fail at various stages and why many other enterprises do not expand despite having strong capabilities. While an internal CFO (Chief Financial Officer)  may aid small businesses in navigating and building their financial stability to survive unanticipated setbacks, the majority of them could afford to hire one.

A good virtual CFO  service provider shall take care of the following services of a business such as:

  • Accounting and book-keeping.
  • Cash flow forecasting and budgeting.
  • Financial statement preparation and records management
  • Banking services
  • Tax services
  • Compliance
  • Corporate governance
  • Miscellaneous services
Accounting and book-keeping

In addition to expertly handling the tax, accountancy, or compliance obligations, a firm must have a consultant lawyer on standby. The other alternative, which is frequently suitable for small and moderate firms, enables you to embrace the direction of a Virtual CFO for MSMEs services to pick and comply with the proper corporate entity. Having the in-house knowledge to manage them is indeed an option, but it is also possible.

With years of expertise working with small firms, your virtual CFO (Chief Financial Officer)  can explain to you your company's key financial indicators and how to strengthen them to safeguard your bottom line.

Cash flow forecasting and budgeting

Making the proper business decisions requires having a better grasp of the financial situation within a goal time. The virtual CFO's (Chief Financial Officer)  cash flow prediction lets you know how much more funding would be needed for a particular project and then how to make the right monetary arrangements for on-time completion.

Creating financial statements and maintaining records

Financial statements are used by managers to make rapid choices. They are similar to health assessments on different parts of a firm. Additionally, they aid in obtaining loans or outside investments.

Banking services

Regarding sales and cash flows, every firm has peaks and troughs. However, even in a recession, the firm may obtain a loan from the bank thanks to the persuasive claims.   For the very same, you may rely on your fictitious CFO (Chief Financial Officer).

Tax assistance

Most small company owners are unaware of the direct as well as indirect effects that several of their everyday choices have on their taxation. They frequently make the error of believing there won't have been any taxes due for a month or year when didn't earn any money.

Compliance

That was one of the fundamental functions your virtual CFO (Chief Financial Officer)  offers to help your company stay compliant with the most recent regulations of the Companies Act, FEMA, Income Tax Act, IPR legislation, Contract Act, etc.

Corporate Governance

Your virtual CFO (Chief Financial Officer)  helps you determine the best corporate structure for your company and provides guidance on the laws and guidelines that must be followed. The credibility of the shareholders, customers, and institutional investors is increased as a result.

Thus at especia.co.in the additional financial services provided by your virtual CFO (Chief Financial Officer)  include cost control, break-even assessment, debt budgeting, audit assistance, MIS reporting, inner control systems, and more.

Contact Us for CFO Services, Part-Time CFO & Virtual CFO Services in Delhi, Noida, Gurgaon, and all across India: write to us at accounts@especia.co.in. Or Call On :(+91)-9711021268 +91-9310165114

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