Page 30 - CMA Journal (Nov-Dec 2024)

Focus Section

When Should You Look for a Virtual CFO? 4) Nonprofits and NGOs: Organizations that require
assistance with budgeting and grant management
A Virtual Chief Financial Officer (vCFO) becomes essential can also benefit from the expertise of a virtual CFO.
when you lack reliable and comprehensive financial data,
experience inefficiencies in your back-office operations, Key Trends That Will Shape Virtual CFOs
spend excessive time on bookkeeping, or face cash flow It is estimated that some of the key trends shaping Virtual
challenges. Additionally, a vCFO can be invaluable if your Chief Financial Officers' services include increased
business lacks a financial plan or strategy, struggles with specialization and niche expertise, a focus on strategic
budgeting, needs expert financial advice, or seeks execu- advisory services, an emphasis on sustainability and ESG
tive-level guidance. If you want to focus more on growing reporting, enhanced technology integration, greater
your business rather than managing its finances, a vCFO adoption of data analytics, a stronger focus on cyberse-
can provide the expertise you need. curity, advancements in cloud-based financial solutions,
Some Virtual CFO Services You May Consider and increased collaboration with other business advisors.
The growing demand for vCFOs will create more job
Type of vCFO Companies/Marketplace opportunities for accountants, and accounting firms will
you can get them gain regular clients in need of their services.
Dedicated vCFO services inDinero, CFO Hub, Pilot Qualifications Needed to Work as a CFO?
Freelance & consulting Upwork, Toptal, Flexjobs 1 Gain the right experience in finance, accounting, and
AI-Powered CFO tools Zeni, Fathom, FloQast strategic planning.
Cloud Accounting with QuickBooks, Live, Xero 2 Have a deep understanding of financial regulation.
CFO services 3 Know how to analyze complex financial data.
Making the Right Decision when Searching 4 Have attained the right education & professional
certifications.
for a Virtual CFO? 5 Gain a deep understanding of the specific industry
To make the right choice when searching for a Virtual you want to work in.
CFO, consider the following steps: 6 Build relationships with key stakeholders, and
continue learning.
• Understand your exact business needs Conclusion
• Choose a provider with experience in your industry
• Review the experience and credentials of the expert A virtual CFO becomes a key source of financial expertise,
• Read client reviews and request references offering solutions to economic challenges, providing
• Ensure their work style aligns with your business culture financial planning, building a strong financial foundation,
• Assess their communication strategies and establishing efficient back-office systems. They help
improve operational efficiency, assist in business
• Opt for a tech-savvy provider
• Confirm that their pricing fits within your budget management and support, optimize hiring timing, main-
tain tax and audit readiness, and provide assistance with
For the best outcome when working with a vCFO, clearly major projects.
set and communicate business goals, and specify the
kind of relationship you want to establish. Ensure they Once you hire a Virtual CFO, you can expect deliverables
understand your business objectives and expectations such as financial analysis and strategy reports, budgets
from the service. Regular and open communication and forecasts, financial reports, a financial model for
throughout the process is key. Additionally, be proactive scalability, management of banking relationships,
in understanding what services they offer, the financial recommendations on cash flow goals, operational
information you will receive, and how they can assist if a improvement analysis, preliminary merger assessments,
new system is implemented. valuation assessments, succession planning, tax planning
Who Can Benefit from vCFO Services? and returns.
About the Author: Dr. Imran Batada is a technology leader with
1) Startups: vCFOs can assist startups with financial over 24 years of experience in project management, policy formula-
planning for fundraising, managing investor tion, ERP implementation, and research. He currently serves as the
relations, and overseeing cash flow. Startups may Chief Digital Officer and Director of the Center for Information &
lack the resources to hire a full-time CFO, making a Technology at IoBM. Previously, he was the CIO and Director of the
virtual CFO a valuable solution. Center for Information & Communication Technology at IBA Karachi.
Dr. Batada is the author of Digital Pakistan, a roadmap for digital
2) SMEs: Small and medium-sized enterprises that transformation across government, industry, and academia. He
need strategic guidance can benefit from vCFO founded the Sindh Research Incubation Centre (SRIC) and has worked
services without the need for a full-time CFO. with government and donor agencies to train over 10,000 students,
contributing to Pakistan’s growing freelancer economy. Dr. Batada
3) E-commerce and Tech Companies: These business- has received multiple World CIO 200 LEGEND Awards (2020-2024) and
es often require dynamic financial forecasting and the Living Legend Excellence Award (2018). He also serves on various
performance analysis, areas where vCFOs can boards, including FPCCI, P@SHA, PAFLA, ICAP-DAAB, and PIPFA.
provide significant support.

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