What is a Virtual CFO?

A business that does not have an in-house finance department can utilize alternatives such as outsourcing the finance function to another firm. Apart from this, the business can also utilize virtual CFO services. Virtual CFO services can be offered either remotely or through an external consultant.  Due to digitization, businesses have to adapt according to the changing circumstances. Some businesses, such as Start-ups and SMEs, may not have the necessary resources to hire an in-house Chief Financial Officer (CFO). Hence, these businesses would opt for virtual CFO services.

The advent of digitization has made the role played by a CFO more challenging. In this competitive environment, a CFO needs to have relevant skills to carry out financial functions, management, and business functions. Every organization requires appointing a chartered accountant, and the CA is responsible for the financial functions carried out in the organization.

What are the advantages of having Virtual CFO Services

Digital Challenges have made the business environment more competitive. Hence, it is crucial to have virtual CFO services. There are different advantages to using virtual CFO services. The following are the advantages of using these services.

  • Integration

Using virtual CFO services would offer the organization advantages of technology integration. Virtual CFO firms use advanced technologies such as artificial intelligence, data analytics, and big data to enhance the process in which compliances are maintained. Accounting compliance can be maintained through this process. Apart from this, a firm using virtual CFO services can get timely updates on compliances to be followed. At KESHAV BANSAL & CO., our CFO services have high-end technologies such as artificial intelligence and data analytics to provide seamless services.

  • Financial Projections

A firm using these services would be able to receive financial projections and budgetary analysis. The services offered would help the organization predict the budgets and finances of the organization. At KESHAV BANSAL & CO., our services would include the use of prediction technologies such as predictive analytics to protect your organization’s finances.

  • Accounting Compliance

Using this service would provide the organization with an added advantage of compliance with accounting systems. In India, an organization has to maintain compliance under different regulatory authorities. These include the Institute of Chartered Accountants of India, Ministry of Corporate Affairs, Securities and Exchange Board of India and the Income Tax Authorities. Using virtual CFO services would provide not only your organization accounting compliance but also compliance with the relevant regulatory authorities. Using KESHAV BANSAL & would provide you with updates on different compliances that have to be followed by your organization.

  • Budgetary Control 

Using this service would also provide you with a means to control your budget. Every organization has a fixed budget that is allocated for carrying out different activities. At KESHAV BANSAL & CO., our team of professionals, such as CA, CMA, and CS, will plan and prepare a budgetary report per your organization’s requirements. Through this service, your organization can receive a detailed report on budgetary analysis and reporting. A traditional CFO cannot offer this. Even if offered, it would take a considerable amount of time and effort to produce the required level of results

Virtual CFO Services Offered by KESHAV BANSAL & CO.

At KESHAV BANSAL & CO., our services will ensure quality services, which adds maximum value to your organization. We ensure that the services we provide are of high standards. Our Virtual CFO service will ensure that optimum ability is achieved in managing your organization’s financial resources. This service will not only increase the capability of your financial functions but provide overall technical, administrative and managerial support for your organization. We offer the following services as a part of our virtual CFO package:

Goods and Service Tax Compliance

All businesses that provide services have to register with the respective authority for GST compliance. Under Goods and Services Tax Compliance, the following services will be included as a part of the virtual CFO package:

  • Compliance with the respective GST rates for a different form of services offered by your business.
  • Procedure on using the HSN Code for different products and services (Unique Generated Code).
  • Minimum Eligibility for GST registration for your business.
  • Documents required for GST registration.
  • GST Reconciliation Services in case there is any form of mismatch.
  • Electronic Way Bill (e-Way Bill) compliance.
  • Input Tax Credit Compliance and Calculation.
  • Letter of Undertaking (LUT) application compliance in case of export of goods.
  • Systems of Appeals under GST.
  • GST Refund process.

Tax Deducted at Source Compliance

When an individual or an organization makes payments and if the threshold goes more than a specific amount, then the payee has to pay the tax deducted at source. When this is carried out, compliance must be maintained as per the provisions of the Income Tax Act, 1961. Our Virtual CFO package would include the following TDS compliance:

  • Compliance of general rules of TDS.
  • Calculation and Interpretation of TDS rules.
  • Timely notification of TDS payments, which are made by the payee.
  • Supporting the system of payments that are made in the TDS portal.
  • Filing of Returns which are made quarterly.
  • Form 16/Form 16A compliance.
  • Reconciliation Services of TDS through Form 26A.

Human Resources Services

Modern CFOs need to know more than accounting and financial services. Hence, CFOs need to take an active involvement in the major activities that are carried out in the organization. As part of our virtual CFO package, we also offer human resource services for your organization’s finance and business functions. We would offer the following services:

  • Payroll Support for your organization amongst all hierarchies.
  • Agreements include contractual agreements between the company and the employees, executive agreements, and non-compete clauses, which are predominately used during post-termination.
  • Employment Policies.
  • Executive Policies that apply to key management executives of the organization. Such clauses will include non-compete clauses, garden leave clauses, restrictive covenants, and blue pencil clauses.
  • Agreements for the outsourcing of human resources services for your organization.
  • Compliance with different labour legislation such as the Industrial Disputes Act, Workmen Compensation Act, Shops and Establishments Act.
  • Human Resource related work at all levels of the management of the company.
  • Documentation Support for HR-Policies of the company, Handbook, Exit Clauses, Terms and Conditions for employment, etc.
  • Non-Disclosure Agreements (NDA), also known as confidentiality agreements for secret information and highly confidential matter.

Filing of Income Tax Returns

Income Tax Returns have to be filed by every individual or organization, securing some form of taxable income. Filing of income tax is under the Income Tax Act, 1961, and respective income tax rules which apply to the entity. At KESHAV BANSAL & CO., the following services would be offered as a part of the virtual CFO package:

  • Compliance maintained under the Income Tax Act, 1961.
  • Timely Filing of Income Tax Returns by Companies.
  • Assisting with filing the tax for companies at the respective applicable rates.
  • Computation of Tax Returns.
  • Income Tax Reconciliation Process through Form 26AS.
  • Advanced Tax Calculation if applicable to the company.

Compliance with Registrar of Companies (ROC)

When an entity is formed, it must satisfy the requirements of the Registrar of Companies. Similarly, entities have to file specific returns with the ROC. As a part of the virtual CFO package offered by KESHAV BANSAL & CO., the following services are offered under ROC compliance:

  • Annual Filling of the Financial Statements with the Registrar of Companies.
  • Ensure compliance is maintained while taking the minutes of the meeting.
  • Know your Client (KYC) Compliance for Directors.
  • Assisting in the Preparation of Board resolutions for the company.
  • Company Secretary of Services and Support Functions.

Legal Support Services

As a part of the Virtual package that we offer, different forms of legal compliance services would be offered. The following services would be offered:

  • Procedure for the formation of a different form of corporate entities.
  • ROC Legal Compliance.
  • Vetting of Legal Contracts and Other policies.
  • Service Level Agreements (SLA), Distribution Agreements, Master Service Agreements, Franchising Agreements, and Leasing Agreements.
  • Support with appeal and litigation services.
  • Legal Templates for entering into contracts with different entities.

Management Information System Reporting (MIS Reporting)

MIS reporting is the process in which a report is provided to the organization’s management. This assists the management in making decisions that can affect the organization in the long run. MIS reporting is usually an online process of reporting which will affect the key decisions of the organization. At KESHAV BANSAL & CO., we will offer a comprehensive report when it comes to MIS. The following reporting is carried out by KESHAV BANSAL & CO.:

  • Budgetary Reports.
  • Financial forecasting.
  • Drafting the reports and ensuring that compliance is maintained.
  • Spread Sheet Analysis of reports.

Book Keeping 

Book Keeping is understood as the recording of financial transactions daily. This is carried out by an organization to understand the number of purchases, sales, inventory, and supply present with the organization. At KESHAV BANSAL & CO., we offer bookkeeping services to suit your needs of the business. We offer the following type of bookkeeping services:

  • Management of Ledgers.
  • Management of Accounts.
  • Rectifying.
  • Tallying.

Payables Management Services

When an organization has specific payments to be made, and if the payments are outstanding, it becomes a debt to the organization. Payables Management includes the allocation and management of payables for an organization. This would include the following:

  • Allocation of Different forms of Expenses.
  • Settling the order of priority of different forms of debts.
  • Negotiating with Creditors.

Interim CFO

In our virtual CFO package, we also offer interim CFO services. Interim CFO is a form of CFO that carries out different services for different forms of organizations. This CFO is known as an interim CFO as the individual is acting as a CFO only for a particular period. We offer the following services as interim CFO:

  • Interim Virtual CFO services,

Financial Management

In our package, we will also manage your organization’s finances. We offer the following financial management services:

  • Management of Finances of the company.
  • Preparing a Report.

Corporate Governance

Corporate Governance is understood as having transparency between different stakeholders of an organization. The stakeholders of the organization include the directors, shareholders, and the customers of the organization. At KESHAV BANSAL & CO., we offer the following governance services as a part of the virtual CFO package:

  • Implementing the Framework for Governance.
  • Assisting to clarify different roles played by executive and non-executive directors.

Advantage Virtual CFO

  • KESHAV BANSAL & a recognized management consultant in providing professional services.
  • Experts at KESHAV BANSAL & CO.have provided virtual CFO services for multinational companies and NBFCs. Our primary objective is to add value-based methods to your organization.
  • We have multifaceted teams of professionals comprising Chartered Accountants, IT professionals, lawyers, and company secretaries.
  • We have extensive experience handling matters related to transaction consulting, taxation, and accounting matters in India.

Frequently Asked Questions

What is the difference between a traditional CFO and a Virtual CFO?

A traditional CFO is appointed by an organization to carry out the activities of a CFO. However, a virtual CFO offers external counsel and advice to an organization. Using a Virtual CFO is beneficial when compared to a traditional CFO.

What are the benefits of taking KESHAV BANSAL & CO.Virtual CFO services?

At KESHAV BANSAL & CO., we offer the following services:

  • Professional Support.
  • Highly Integrated IT Team.
  • 24*7 Customer Support.
  • Competent Team of CA and CS.

Are these services better than using traditional CFO services?

Yes, using virtual services is better than traditional services. Virtual services are quick when compared to traditional services. Moreover, Virtual services use different forms of interfaces such as AI and data analytics, making the process faster.

What are the main services offered by a virtual CFO?

Some of the main services offered by a virtual CFO are:

  • Financial Management.
  • Budgetary Control.
  • GST Filing.
  • Income Tax Filing.
  • HR Management.
  • MIS Reporting.
  • Legal Process Work.