What is virtual CFO?

Virtual CFO stands for virtual chief financial officer. A virtual CFO is an outsourced service which provides high skilled assistance in addressing financial requirements of an organization. A virtual CFO can be an individual or an entire entity. Virtual CFOs works according to the need of your business by providing flexible services depending on the size and growth of your company. A virtual CFO provides value added strategic services that an accountant can’t provide.

How are they different from full time CFO?

The services provided by a virtual CFO is same as a full time CFO but one of the most important difference is that the virtual CFO is not your full-time employee, they act as a business partner in the form of consultant and will be charging consultation fee for their inputs and efforts.

Does virtual CFO’s are only available online?

No, according the business requirements virtual CFO can also work from client’s location.

What are the jobs of Virtual CFO?

The primary job is to oversee financial planning, manage financial risks, business planning and budgeting, maintain and report financial activities. Virtual CFOs helps in manging capital expenditures and also acquiring capital at low cost.

How costly is to hire a virtual CFO?

The cost varies from service to service, amount of effort and time required to render the service, projects and its criticality.

What are the services provided by us as a virtual CFO?

As CFO of your company, we ensure that all your accounting records, statutory compliances are up to date and in consonance with the accounting standards and applicable rules and regulations. On behalf of the management we monitor the application of company’s fund ensuring efficient utilization with minimum leakage. We ensure financial effectiveness on a daily basis.

Is your data secure?

Yes, your data is secure and data security and privacy is our utmost priority.

I have a public/external accountant than why do I need a virtual CFO?

These external accountants and CAs are engaged in financial accounting services, auditing and compliance which is majorly on the direct and indirect taxes. They only help you to solve your financial accounting shortfalls but they lack experience and expertise that will help your business grow. We as a virtual CFO will bring vast experience in integrating your business and financial issues and bring financial effectiveness that will fuel your growth.

What type of sectors/industries we serve?

We are not restricted to any sector and industries. We provide our services to whoever needs it. Our model will be well suited for fast growing SMEs, family businesses, MNCs where they can’t have full time CFOs. Also, PE/VC firms where they can’t afford CFO for every business in their portfolio.

How does a virtual CFO fits in the current organization structure?

How does a virtual CFO fits in the current organization structure? We directly report to the CEOs or the business unit head of the organization. We work along the finance section of the organization and we get reports from them and share the same with them. All the information shared are confidential and it remains between the concerned parties.

What is forex management?

Foreign exchange (Forex) management is designed to facilitate transaction of currencies in the global market. So, it basically means trading of one currency to another for the goods and services rendered. These exchange takes place in forex market where network of private individuals, organized financial institution and banks provide infrastructure for the smooth transaction.

Why should you trade forex?

Forex market works 24/7 as most it engages in overseas currency exchange. It is a global market thus more volatile in nature and gives high return to risk takers. Since most the transactions are done online so it is easily accessible. Forex trading is highly monitored by the regulatory body thus making it on of the safest markets to trade. Liquidity is high and you can get in and out of a business quite easily.

What are the risk involved in forex trading?

Forex trading requires small initial investment, thus small fee can result in substantial losses and illiquid assets because of the nature of leveraged trades. Time difference and political issues can also impact the forex trading. Since it is highly regulated, compliance is very strict. Macroeconomic moves of a country can also hamper your trade like change in fixed exchange rates and devaluation.

What is the best time frame to trade?

Time frame should be decided by the trader depending on their personality. You can start with 15 min chart and then can make changes according to your need. For beginners it is advisable to start with long term outlook.

What is SWAP and how it is calculated?

Swap is the difference in the interest rate of currencies you are trading and is calculated on your position whether it’s long or short.

Swap = (Pip Value * Swap Rate * Number of Nights) / 10

What is business valuation? When should I go for my business valuation?

Business valuation is the process of determining the economic value of a business or a company i.e. current worth of the company. Knowing worth of your business is always a good Idea which helps in carrying out different business deals. Generally, people evaluate their business after or before certain triggering event like M&A, death of partner etc. but it is good practise to have a business evaluation every year.

Why do I need business valuation?

Business valuation helps the business owners in taking decisions about the future of their business. It helps in setting up a base line for the business and various development strategy which will improve the profitability of the business. It also helps to understand the existing weakness and helps to overcome it. Most importantly it helps you in getting funds and alternative investments. It also helps you in resolving shareholders and partnership disputes.

What are kind of valuations being available?

There are basically three business valuation methods and are:
a. Asset-Based approaches,
b. Earning value approaches, and
c. Market value approaches.

How much it costs? How long does it take?

Business valuation cost depend on firm to firm and depend on the valuators expertise, resources, geographic location, infrastructure etc. It depends on the business/company that is being evaluated and also on the purpose of the evaluation.

What is project financing?

Project financing means sourcing funds for long term projects based on non-recourse financial structure in which the debt and equity used to finance is paid back by the cash flow generated by the project. It is basically a loan structure that depends on project cash flows, assets, rights and interests held as collateral.

Why should I outsource project financing service?

Project financing needs specific knowledge and skills that are necessary for the projects. Many companies don’t have this expertise and don’t have resource to deploy for the same. It will help you analyse the risk involved in the project and help you understand the financial requirement according your project. You will be assisted in getting loans and the entire process will be accelerated, so that you can focus on your core competencies.

How do you provide project finance?

Our team of specialists bridges the gap between the borrower and bank. We take care of the project reports, formalities and documentation required by the bank.

How long does it take to finance a project?

The time required to finance a project is based on the project and depends on the project scale, nature, complexity, marketability, current economic condition and the time to be taken by the project to hit the floor.

Do I have to provide financial guarantee to the lenders?

A In project funding the bank has charge on the land, building, any super structure thereof and hypothecation of stocks & receivables and all the current assets relating to project. It is considered as primary security but the bankers may ask for collaterals and personal guarantee of the borrower in addition to the primary security.

What kind of projects you help in financing?

We help the business grow by assisting them with getting loans for New projects, expansion and diversification of the existing ones.

Do you prepare project finance documentation?

Yes, All the documents required by the bank for the purpose of project financing will be prepared by our specialised team as per the information provided by the borrower. The most important thing in any project financing is preparation of Detailed Project Report (DPR) which includes the technical feasibility, managerial competence, commercial, economical , political, environmental and financial viability of the project.

What are the cost involved in project financing?

It varies from project to project and depends on scale and complexity of the project . It is a significant expense.

What is the role of an audit assistant?

Audit assistant helps you check the accuracy of your accounting system and processes. They review your accounting processes and recommend changes if needed and help you follow the best accounting and book keeping practices.

Why do I need an Audit Assistant?

To maintain the audit time table and ensuring that all the responsibilities are fulfilled by the finance team in the stipulated time period. Audit assistant will help you in preparation of all the supporting schedules and help you with the audit testing and query resolutions. It will help you concentrate your resources and time in your business rather than streamlining the entire auditing process.

What are the services provided?

We help in maintaining the time table to meet the deadlines for each task. We thoroughly go through the accounting practices followed by your organization and bring the best accounting practices in help. We act as a liaison between you and the auditors by understanding the needs of both the parties. We keep you abreast with all the related legal compliances which in turn help you interpret the audit results in an effective way.

What are the cost involved?

It varies from project to project depending on time and effort required to resolve the inconsistencies.

Will you be doing the auditing or will you just advise us?

We won’t be doing auditing and will review and provide recommendation which will take your audit efficiency to the next level.

What is international taxation and how it is different from domestic taxation?

International taxation is determination of tax on business entity or a person doing business in country outside India and is subjected to there tax laws. It deals with the taxes on the international transactions. Domestic taxation is a group of indirect and direct taxes incurred while doing business in your own country.

What are the key services offered in Internal Tax advisory?

Internal tax advisory includes transfer pricing, cross border needs and legal compliances.

What are different regulatory services?

Different regulatory services in India for smooth functioning of business in India are M&A transactions, Anti-trust, human resource regulation, FEMA, FDI, FERA, SEBI & RBI regulations, Insolvency code and public policy.

Why do I need to comply with the regulatory process?

For setting up a business to running the same, undertaking business restructuring, transactions, joined ventures and M&A we have to abide by the rules and regulations set by the scrutiny bodies of India. Non-compliance of any rule/regulation has an impact on both your reputation and market value of your company, thus it is very important to follow these compliances.

What is your role in providing these services?

We help you understand these international taxation laws and regulatory services and help you with an appropriate structure that your business needs. We take care of all your legal, tax and regulatory (advisory and compliances) needs and do health checks. We serve all type of industries from start-ups to established companies.

What is tax assistance?

Tax assistance is support provided in managing your organization’s tax and accounting department. They provide you administrative assistance while doing tax and accounting duties.

Why do I need tax assistance?

Since business and tax regulation go hand in hand, it becomes mandatory to have a good tax compliance process and control. With the changing macroeconomic condition and changing tax regime in our country it is necessary to have someone at your disposal who can help you and your team to understand the changes and help them adhere to the rules. It will help you save money and improve your bottom line.

What tax services we provide?

We provide you income tax compliance service, strategies, dealing with tax office and litigations. We help you improve the efficiency and effectiveness of the existing processes and controls. We provide full support at every stage of tax matters and provide you practical solution which will help you improve your bottom line.

What is the SME IPO?

SMEs contribute 35%-40% towards country GDP, give employment to 40%-45% people and contribute 45% of total manufacturing output. Many people want to start their own business and lack of fund are the biggest hinderance for them. So, SEBI has come up with a platform which will provide these SMEs an opportunity to raise public funds through IPO, which will help them in debt repayment, working capital, acquisition etc which will help them grow.

What is the difference between SME IPO and regular/main board IPO?

The main difference between SME IPO and main board IPO are as follows:
a. Minimum investment: Minimum post issue paid capital for main board IPO is 10 crores whereas for SME IPO is 3 crores and can go up to 25 crore max.
b. No of allottees: There should be at least 1000 allottees for main board IPO and 50 for SME IPO.
c. Underwriting: Mandatory for main board IPO whereas for SME IPO it depends on issuing company.
d. IPO size: Investment should be in between 10000-12000 for main board IPO but for SME IPO it should be between 120000-150000.
e. Track record: Stringent for main board IPO and relaxed for SME IPO

Who can go for SME IPO?

The company should have tangible asset of at least 3 crores. The post paid up capital should be between 3 crores – 25 crores. The company should have a track record of three years. There should be at least 50 investors at the time of listing. The minimum application and trading lot size should be more than 1,00,000. 100 % underwriting issues and merchant bankers are required to underwrite 15% in own account.

What are the benefits for SMEs in getting listed in SME IPO?

It will give them easy access to capital and financing opportunities. There is less regulatory norm for SMEs. It will give them visibility as well as credibility. It will help in tax planning and also help in realizing the worth of your business. For shareholders it will give them easy liquidity and exit. They don’t have to pay capital gain tax on transfer of shares and payment of security transaction tax. In short, it will help your business grow and will create more opportunities.

What are the challenges faced while getting listed in SME IPO?

Companies going for SME IPOs face difficulty in enough fund in hand before going for IPO also they face difficulties in gaining trust from the investors.

What are the platforms available for SME Stock Exchange?

SMEs can be listed on BSE SME exchange and NSE’s Emerge.