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Online CFO runs you through processes - Jay (Inset)

Virtual CFO – Actual Work

Automated, paperless and in pocket accounting

JAY DESAI* says good financial advice and care are at the centre of any business - old, new and upcoming.

With the rise of the Covid-19 virus and the pandemic and lockdown situation thereon, everything moved online- businesses, learning, etc. People from all generations have adapted to the change and made necessary amends in their way of living.

The pandemic also took a toll on the economy in the country. But would it stay like that forever? No, thanks to the tech-savvy and reformative youth of our nation. The new-generation not only adapted to the changes but introduced more ways of being productive and achieving socio-economic benefits.

The country has seen the rise of many small and big entrepreneurial ventures and is a house of budding entrepreneurs. They are considered to be the spine of the Indian economy owing to their valuable contribution to the socio-economic development of the country.

With that, a number of economic and financial reforms that provide easy and affordable debt options have been formulated by the government. With the availability of funds being made easier, the importance of managing them has increased.

Now comes the question of managing the funds gained. A CFO or Chief Financial Officer is someone who helps one to manage and utilise funds in the best manner. Their primary responsibility includes providing professional advice, managing the financial risks, financial reporting, taxation, compliances and record-keeping and helping companies minimise loss and maximise profit.

With everything moving home due to the pandemic, having a CFO sit down and run you through measures and investment options in detail had become a tad bit hectic. Thus, the introduction of virtual CFO helps people do the same from the comfort of their homes and at their own understanding and pace.

Have you read - Work From Home...For Some More Time

Good financial advice and care are at the centre of any business - old, new and upcoming. While people may be good at business ideas, marketing models, pitches, etc, they might lack the technical knowledge for managing their finances.

A virtual CFO service provider shall take care of the following services:

  • Accounting and book-keeping
  • Taxation services like Income Tax, GST, Profession tax
  • Company Law
  • Compliance
  • Financial statement preparation and records management
  • Cash flow forecasting and budgeting
  • Banking services
  • Miscellaneous services

Let’s look at it in detail.

- Accounting and book-keeping.

For everything to run smoothly and with law, it’s important to consult a professional. They help you with keeping a track of your expenses and income, file taxes timely, data entry and regular monitoring and reporting.

- Taxation services like Income Tax, GST, Profession tax

A person stepping into the business world may not be aware of the taxes they are liable to pay and often end up paying high taxes, penalties and more. Advice from a virtual CFO can help you be more aware of the matters relating to your current tax status and tax implications of your decisions. They can help you with the reconciliation of 26AS (Income tax) or GSTR2A – 3b – Books (GST).

- Company Law

All companies are bound to follow certain laws, rules and regulations set by the government. A virtual CFO can educate on the laws that are relevant to your business.

- Compliance

If you aren’t aware, there are heavy penalties for filing incorrect returns/forms or for not complying to legal issues in a timely manner. With compliance services, your CFO can make you aware of the necessary legal requirements as per all the latest provisions under the Income Tax Act, Companies Act, GST, Profession Tax Act etc.

-Financial statement preparation and records management

These are like timely health check-ups for your business. Your virtual CFO can help you prepare financial statements such as profit and loss statements, balance sheet and cash flow statements.

-Cash flow forecasting and budgeting

An understanding of how much money you start with, where it goes and how much comes in after the business is afloat. A virtual CFO will give you timely reports on your finances and will help you with budgeting for maximum profits.

-Banking services

Well maintained and convincing bank statements help your business to be eligible for loans, when and if needed. You can rely on your CFO to do the same for you even during a financial crisis.

Any additional queries, doubts, or help may also be received from your CFO. And what better than someone you can reach out to at hours convenient to you? That’s why a virtual CFO is a blessing for the newer generation and a reliable option when planning their finances and business. (*The author is Founder Keeping Your Account - KYA)

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