Virtual CFO is also commonly known as vCFO and is trending in the market for being the most efficient, affordable outsourced service to be utilized at a lesser cost by the newly incorporated companies; usually, it is utilized by the startups. The very obvious reason such enhanced outsourcing is lesser cost, dedicated work and company owe the least liability towards such outsourced service.
A Virtual CFO is the qualified financial person, who handles the finance and accounts, even booking keeping of a company without being physically present in their premise. They are engaged in providing financial support, compliance related stuff, and certain statutory work, also provides financial and business advising. The vCFO handles the work virtually and remotely and undoubtedly the technology has played the most vital role in the whole process. The company provides its documents over internet, basis which the data analysis is done by the vCFO, which also includes the segregation and report generation. Hiring a vCFO has become very common these days as it comes with low cost and many advantages such as results/reports are automated hence lesser chances of error, a drastic shift has followed from the laborious services to business and financial consulting, uniform and accurate report is generated, with the use of advanced software auto segregation of data entered is also possible.
It has a very significant impact on banking sector reconciliation is more a headache, financial and business is done on an expedited manner. Most importantly such outsourcing helps the of the company allow themselves to be involved in the core Business Issues and developments. The vCFO is considered to be an unbiased person as does not belong to company employee category working in-house hence an unbiased perspective is received. Hence for Startups it is nothing less than bliss.
