Most small and medium enterprises do not consider that the pandemic positively impacted the business’s financial and operational aspects. On the other hand, there is one area where a positive change for business owners has occurred. Pandemic has shifted many business operations online, saving business owners much money. The same is the case with virtual CFO services. Virtual CFO services have reduced the need to hire full-time CFO.
The concept of a virtual CFO is not new in the business world. In recent times, Virtual CFO services have come into demand due to their cost-effectiveness and more efficient Virtual services. Keep reading the article to learn why more and more businesses are opting for virtual CFO services in Dubai rather than an in-house CFO.
Who is a Virtual Chief Financial Officer?
A virtual chief financial officer is a professional who fulfills his responsibilities of financial assistance to a business from a remote location or on a part-time basis. It is an outsourced CFO service and can be an individual or an accounting firm.
Virtual CFO services provide options to small businesses with the financial assistance they can’t afford in normal circumstances. Despite being a cheaper option, a Virtual CFO fulfills his responsibilities with all his expertise best. Virtual CFOs in Dubai provide the same services as full-time CFO, but the only difference is that they work remotely part-time.
Why are Virtual CFO Services becoming more common in Dubai?
Traditionally, the CFO position was filled by a finance professional working in-house as a full-time employee. But the pandemic has changed the situation recently. Only large businesses and organizations can afford to hire an in-house experienced chief financial officer. Organizations are looking to narrow down the workforce and go online with their operations due to the pandemic. So, the Virtual CFO service can solve this problem due to its distinctive features.
A virtual CFO provides a solution to small and middle enterprises (SMEs) through which they can overcome financial barriers. New businesses are coming to the scene and blooming rapidly nowadays. When they grow quickly, the need for financial services arises. When they used to look for an option, there used to be an all-or-nothing position of full-time CFO. Now companies and small, newly growing businesses can hire a virtual CFO on a flexible and part-time basis without worrying too much about finances.
Why do Businesses need to hire Virtual CFO services in Dubai?
Inflation and pandemic have forced organizations and entrepreneurs to look for finance professionals on a part-time basis. In this scenario, Virtual CFO services have become a favorite of business owners to overcome these challenges. If you have the following needs, you should consider hiring a virtual CFO for your small business in Dubai:
- Need to Grow Business
Even if your finances and accounts are looking right on paper, there can be something wrong with your finances. These hidden finance and accounting errors can prevent your business growth. A virtual CFO can help you grow your business with expert financial advice without hiring a full-time CFO.
- Rapidly Evolving Business
After an early struggling phase, businesses start to evolve and grow rapidly. This rapid growth can raise the need for expert opinion to handle finance and accounting matters. If you can’t hire a full-time CFO, a Virtual CFO is the best option for your small business.
- Managing Cash Flow
If you cannot manage your cash flow, this is the time to hire a part-time virtual CFO. This hiring will put your finances back on the right path, and you will be able to handle new investors with the help of a professional CFO.
What are the Responsibilities of a Virtual CFO?
Virtual CFO services provide a variety of professional expertise to organizations. They provide solutions to various financial problems without hiring a full-time employee. Below are the responsibilities a Virtual CFO fulfills to help a business grow:
- A virtual CFO assists in keeping your books and accounts in order by generating valuable data and interpreting the results from that financial data. So, a Virtual CFO can provide Accounting and Bookkeeping services remotely.
- A virtual CFO assists you in managing the cash flow of your business. It also helps you manage your finances which will prove beneficial in analyzing expansion opportunities.
- Strategic planning is one of the essential responsibilities of virtual CFOs. They can help with investments, loans, and dealing with banks.
- A virtual CFO can give you a good idea of your company’s financial position. They can help you run your business smoothly by analyzing your financial data.
- Raising capital is generally a difficult task for a business. Still, a virtual CFO can help procure money with his team’s help. A typical virtual CFO has connections in the finance world due to their working experience. So they can attract investors to your company and assist you in raising capital.
- A virtual CFO helps you to manage the budget of your organization. Budgeting can help you make annual strategies, improving your financial planning.
- A virtual CFO will help you to present financial problems and plans to higher-ups and shareholders.
- Using forecasting models, a virtual CFO can also be a good predictor of your financial performance. Forecasting helps in risk management and predicts upcoming risks affecting your company’s finances.
Why prefer a Virtual CFO over an In-house CFO?
When choosing a CFO for your company, the first thing you think about is whether to hire an in-house CFO or a virtual CFO. The choice of the CFO depends on the magnitude and needs of your organization. As a result, evaluating your organization’s needs is necessary before deciding whether to hire a Virtual CFO or an In-House CFO. Some reasons to prefer a Virtual CFO are as follows:
Virtual CFOs provide flexibility based on your company’s needs and give you a personalized experience. They have extensive experience working with various organizations in various fields. They can deal with complex financial problems in a better manner.
In the case of an in-house CFO, the ability to deal with financial issues is minimal because their knowledge is bound to work with one organization. They lack the experience to resolve any complex financial problem in your organization. So, Virtual CFO services are preferred in Dubai due to extensive knowledge.
- Greater Productivity in Shorter Time
Virtual CFO services increase your company’s productivity in a short time. Generally, a full-time CFO needs time to adjust to your company’s working environment. So, they take much time to be productive for your company.
Virtual CFO Services have extensive experience managing different organizations’ accounting and finance. This experience helps them to adjust to a new working environment very efficiently. This is a reason virtual CFO services are preferred in Dubai.
- Focused Decisions
A Virtual CFO team will focus on solving the financial problems rather than engaging in routine activities like an in-house CFO. This ability gives a virtual CFO an advantage over a traditional in-house CFO by enabling effective decision making, quick problem solving, and ensuring the organization’s smooth operation.
- Teamwork in Problem Solving
Virtual CFO services can provide you with a team of professionals with extensive knowledge of finance. On the other hand, an in-house CFO only brings personal experience. A team can thus provide a wide range of solutions for a single problem because of the different experiences of team members. The problem-solving ability of the team makes virtual CFO services preferable in Dubai.
- More Economical
When compared to an in-house CFO, the services provided by a Virtual CFO are less expensive. Larger organizations have the luxury to afford hiring an in-house CFO. But newly growing and small businesses cannot enjoy the luxury of hiring a full-time employee for their organization. Companies can minimize their expenditures by using virtual CFO services in Dubai.
- Knowledge of Advanced Accounting Software
Learning cloud accounting software such as Zoho Books is essential to becoming a virtual CFO. You need to understand and manage the advanced software because you are working from a remote location. With a cloud-based accounting system, you can access your clients’ data anytime and anywhere.
Zoho Books software can also automate routine financial and bookkeeping work traditionally performed by full-time bookkeepers and chief financial officers. So, this advanced software can help you become a better virtual CFO in Dubai.
Why choose Lynchpin for virtual CFO services?
Are you looking for high-quality, all-in-one services for Accounting, Finance, and Tax in Dubai, UAE? Lynchpin’s virtual CFO services are designed specifically for intelligent business owners looking for professional CFO services with extensive knowledge of finance and accounting at an incredibly affordable price.
Our virtual CFO services consist of only two steps:
- Register for our virtual CFO program
- Then we will handle all of your accounting, financial reporting, and tax needs
Lynchpin’s virtual CFO Packages include free-of-cost finance and accounting software (Zoho Books). We will provide you with qualified and dedicated accountants for your company. As part of the virtual CFO Services package, you will also receive free of cost consultancy on VAT return filing and financial reporting.