Virtual CFO Services is an outsourced service provider who offers his expertise with respect to financial planning, budgeting, reporting financial activities, managing financial risk and sometimes tasks like book keeping. Generally the service provider is at a different location and he would provide his services to few companies at the same time. The need of virtual CFO has emerged from small start ups who do not want to bear fixed cost of a CFO. Hence to full their financial advisory needs, they engage virtual CFO who charge at a predetermined hourly rate.
Virtual CFO should be a financial professional with experience in the field of managing finances of small companies. Virtual CFO has to offer the services through Internet or cloud platforms. Hence, knowledge of these platforms is also a must now. Virtual CFO should be distinguished from finance shared centers. Finance shared centers are setup for cost arbitrage, but virtual CFO is hired for his technical skills.
