Frequently Asked Questions

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What does CFO stands for?

CFO stands for Chief Finance Officer. This position is of the “Finance Controller” of any entity.

What does Virtual CFO implies?
  • Virtual CFO implies a coordinate of trusted consultants having skills and proficiency to help the client to build up a strong foundation for success to client’s businessto add values to his Business. It is similar to a full-time CFO of any corporate, except that Virtual CFO is not the employee of the company but act as business partner in the form of business consultantfor a consideration of professional consultancy feesfor his efforts. Although your Virtual CFO may not be on-site, but he is always available. You can choose your Virtual CFO according to the needs of your business by drafting a flexible engagement model, depending on the size and growth stage of your company, thus you have an opportunity of having the best CFO talent assisting you, based on your needs. The Virtual CFO retainer engagements can be as low as 2 hours a week and can go as high as 35 hours a week, so that you can keep your CFO costs variable and low by adopting this flexible engagement model.
  • A key point to remember that your Virtual CFO will only take the professional remuneration for his advice giving you access to the fruits of the results of his advice and service.
What is our role as a Virtual CFO?

As a virtual CFO, our role shall be to manage business functions in following ways:

 

  • Manage your entire Finance function of your business: On retainership basis,we shall manage step by step the overall finance function of your business by taking your finance function under our management, or
  • Manage a Particular Set of Project: We shall manage a particular set of project where the client lacks that specific skill set within their financial management system required for that particular set of project.
  • At a strategic level, as a Virtual CFO, we also advise business Strategies, for example partnering with the CEO/Board in conceptualizing future growth strategies, financial strategy including the structure and willingness required to sustain the long term business plan with economic & market dynamics.
  • Main focus of Virtual CFO is on Start-ups and SMEs who are increasingly recognizing the need to access professional CFO services as a Strategic Partner. We engage with our clients, ensuring quality CFO services, on a continuous on-going basis and at a frequency as desired by them. Thus,we let the company design a flexible engagement model according to the need, size and the growth stage of the client company.
  • Effectively, in nutshell, complete integration&configuration of business with finance is provided by us.
How does the Virtual CFO engagement is being defined in terms of time & deliverables?

It is pertinent to note that theadvancement of technology has made the finance function as a back-office function of the business, Virtual CFO services model is being worked out primary in terms of quantifying time & deliverables with the mix of on-site and off-site presence of our personnel's. The output of our services shall be defined in terms of standard deliverables at regular interval of time, so that your business can evaluate the effectiveness and efficiency of the services delivered by us.

What is the qualification & experience of thepool of people to serve as Virtual CFO?

The pool of experts, which we have created over a long run of time to serve you as Virtual CFO consists of people from varied field and varied experience, combination of which may give results which may not be ever seen in past and may perform extraordinarily to give new heights to your business.

Our Pool of experts consist of following persons:

  • People from CEO and CFO Club
  • Rich experienced Chartered Accountants/ Company Secretaries and Cost Accountants
  • Qualified CFA’s
  • Rich Experience Legal Advisors including highly qualified advocates
  • People from Valuer Groups including Actuaries, Chartered Engineers etc.
  • Ex-Bankers, who have lead PSU and Other Banks in the Past
  • The experience of the experts in our group ranging from 10 years to 50 years depending upon individual to individual which will create a combined experience of more than 200 years.
  • We do not provide fresher CA/MBA at any of our client's site as it is strictly against our business policy as a service provider in line with our business objective.
How do we differentiate with practicing chartered accountants or any other finance consultants?

In general a practicing Chartered Accountant or any other financial consultant is engaged in providing financial accounting Services, Auditing & Assurance Services, Attestation & Compliance Services which is also majorly on Direct and Indirect taxes. Therefore they may be referred as Compliance Partner of the business but to operate at the finance function to resolve the financial issues of the business they may not carry the necessary skill set and experience, as their experience is more of a Compliant in nature may not give abilities to take the risks to grow business. While our Virtual CFO model will bring vast experience in integration of business & finance issues related with internal business controls.

Why should a business engage Virtual CFO?

Virtual CFO, in the present dynamic business & finance environment, is in a position to bring strategic advisory role & value to businesses in SME sector with their proficiency across various issues, which a full time controllership/CFO position may not give due to high cost of employment coupled with SME's inability to offer challenging work environment is limited which lead to high level of erosion at CFO/Controller level. This lead to challenges in hiring full time CFO in SME function and Virtual CFO, based on their offerings perfectly positioning towards business finance requirement, fills this gap.

What happens when the business grows beyond where Virtual CFO services cannot manage?

In that case, we proactively recommend the business owner to shift to a full time controllership function or CFO role by hiring appropriate person who shall work under our supervision and also our bundle of service includes assistance to migrate into full time CFO as and when it becomes need and we may come up with appropriate candidate, replacing Virtual CFO services provider.

What could be the special circumstances when there is the requirement of Virtual CFO on project specific basis?

To serve SME is target of Virtual CFO services, there may be a situation where they may be a full time controller but the dynamic nature of finance function and dynamic needs of business may creates special circumstances which require altogether different skill sets which demands Virtual CFO Services. Some examples of such special circumstances are:

  • Joint venture structuring
  • Private equity raising
  • Capital structuring
  • M&A or corporate restructuring
  • Long term funding
  • Process outsourcing mapping & migration
  • Venture Capital Financing
  • Selling of business function

In this way by providing our Virtual CFO services in the above mentioned situation we supplement the existing CFO/controller function.

What it cost to hire Virtual CFO services?

Usually, cost is the function of business scale and growth aspects. The cost of Virtual CFO Services varies according to the nature of engagement. Few Cost models are as follows:

  • Per person per day Fees Model: This kind of model may be suitable for short term or one time assignment or specific on-site assignment where the charges will be determined on the basis of Per Day Professional Charges of the expert which may vary depending upon the experience and level of expert engaged. The fees shall be calculated depending upon actual man days engaged in the assignment.
  • Fixed Determined fees Model: This kind of model may be suitable in case  for Specific Project Assignment basis such as Private equity raising, Long term Fund raising, Debt restructuring. Such fees may be determined in terms of % of fund raised or any other criteria as may be mutually decided.
  • Fixed monthly retainership fees Model: This kind of model is for long term and ongoing assignments (with on-site & off-site presence) with typical lock-in of six months to one year to start with to serve the business as Virtual CFO, our cost varies according to the nature of assignment and scope of services to be rendered.

We believe in relationship based engagement with our client and to derived fruit of Virtual CFO it is advisable to engage with us for certain reasonable amount of time structure in general.

What of kind of businesses where Virtual CFO Services is most suitable & how do client decide the need of Virtual CFO?
Our Virtual CFO Service model may be suitable in following businesses
  • For fast growing or steady state SME business,
  • Family business with no history of previously working with finance professional (good to start with Virtual CFO professional for gradually leading to full time CFO ) or had no prior CFO/Controller,
  •  In India PE/VC's portfolio companies are picking up and multiple CFO for each of the portfolio company are avoided by PE/VC firm funding SME.
  • MNC segment driven by their corporate HQ to have Virtual CFO in each of the country where they operate as a matter of corporate governance & controller for each country must meet global financial controls requirements.
What are the key segments which full time controller/CFO delivers and how effective is Virtual CFO model in that respect?

The Key Segment in which full time Controller/CFO delivers are:

  • Transaction assurance (Finance operations)
  • Business support services
  • Financial management/models on daily & monthly basis
  • We have render end to end offering to put it equivalent to full time CFO. We provide our offering in each of the above three key verticals. 
  • Each of the above segments are clearly demarcated with key offerings and our executive partner in charge as Virtual CFO services provider works very closely with business head or finance team to deliver solution in line with clients requirement.
  • What is our engagement methodology while serving the client?

    We have designed an execution structure consisting of three stage processes in which works in line with following stages while executing assignment or task under above verticals –

    • Stage - 1 Enquire & Evaluate
    • Stage - 2 Execute & Experience
    • Stage - 3 Enhancement & Enriching
    What is the level of partnership/advisors network which you have to manage specialized assignment?

    Pool of varied specialize experienced partners are brought by us like:

    • Payroll processing agency,
    • Accounts outsourcing agency,
    • IT implementation partner,
    • Lawyers/Advocates,
    • Direct & Indirect Tax consultants,
    • Investment Bankers,
    • Bankers,
    • PE/VC funds etc.

    Our strong network will bring such a strong solutions which will immense the values to the business at the execution stage. KRA/SOP’s of all such partners are managed by us at Virtual CFO.

     

    How do we fit as a Virtual CFO in the Organization structure/to whom we report & maintain confidentiality?

    Generally we are accountable to CEO / BU Head & have to present a report before them. All important guidelines or process issues are reported to us by the people who are working full time as Finance associate within finance function. Once such financial associates gone through the operational structure, they may also present report to CEO on day to day operations.

    To make sure that we are adhering to full disclosures and code of ethics are followed by us, we sign NDA & disclose all conflicting interest terms at the time of taking mandate.