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BCAS Vice President CA Chirag Doshi’s Message for the Month of March 2023

Chartered Accountant as Virtual CFO

I had recently attended the power summit organised by BCAS, lot of new ideas were discussed and one of the emerging area many participants were discussing about is the concept of a Virtual CFO.

I thought of introducing this concept to our members and readers, which is gaining some popularity this days. Virtual CFO is an outsourced service provider offering high skill assistance in financial requirements of an organization.

Key Attributes of a Virtual CFO:

a. A virtual CFO may be a single person or an entity.

b. He undertakes a variety of finance-related duties that many founders and business owners lack the abilities to handle, such as budgeting, identifying market trends, obtaining money, preparing financial forecasts, etc.

c. Helps in acquiring capital at low cost and also helps in controlling the expenditure.

d. There is currently no official requirement as to the qualifications that a virtual CFO should hold. However, it is generally expected for a virtual CFO to have finance professional accountancy qualification along with sufficient relevant experience.

The service spectrum of a virtual CFO services may include the following:

1. System and Process reviews: Streamlining the system and processes to increase the efficiency and bring in better controls and monitoring
2. Budgets: Supports in budgeting and forecasting.
3. Working capital management: Helps in cash flow modelling and working capital management
4. MIS: Preparation of MIS and discussions with the promoters and Investors
5. Financial Statement and Audits: Preparation of Financial Statement as per applicable GAAP
6. Investors: Investor presentation and communication with the Bankers
7. Strategy decisions: Providing inputs in pricing and other strategic decisions from finance management perspective

Apart from above there are various other critical roles a Virtual CFO can play as per the needs of the organisation.

Working Models:

Virtual CFO works under following 3 models:

a. Monthly model: Monthly retainership model, where he is available virtually over the month and makes few days physical visits to the client place as well. It’s a monthly fixed fee model

b. Hourly models: This models are used less, however where the CFO is required only for investor’s communication and monthly reviews, some organisation uses this model as well.

c. Fixed fee: Some CFO charge assignment based fees, specially happens in case of fund raising initiatives.

As the Virtual CFO brings in a lot of flexibility to the organsations, it also has some Challenges like:

a. Gathering deep understanding of the company’s history or previous projects.
b. Effective control and monitoring over the financial management process as it is outsourced to a vCFO.
c. Understanding the industry-specific nuances.
d. Communication and collaboration with a virtual team can be challenging compared to working with an in-house team. However vcFO can plan couple of physical visits during the month.

The startup ecosystem has generated specialized service providers and Virtual CFO is one of them. Startups normally do not have enough resources to hire a full-time CFO. They like to keep fixed costs low and having outsourced service provider provides them with the flexibility of choosing services as and when required.

Friends, with the start ups industry growing in India and also many promoter driven companies have grown and plan to move towards a self monitored and operated entity. Such a transition in India brings in a lot of opportunities to our profession and the time to grab it is now !!

How can we contribute and grab this opportunity

CA’s have the expertise and experience to provide financial and professional advice, analysis, and guidance. We can also help with strategy planning, budgeting, forecasting, cash flow management, and other financial services. Further, We can make sure that all accounting records and statutory compliances are up to date. CA’s can also provide valuable insights into the business operations and help identify areas of improvement. CA’s can also help in making effective and efficient Internal control.

The secret of success is to be ready when your opportunity comes.
By Benjamin Disraeli

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Events

1. LECTURE MEETING ON CHALLENGES IN IMPLEMENTATION OF AQMM

Bombay Chartered Accountants’ Society organised an online lecture meeting on the topic ‘Challenges in Implementation of Audit Quality Maturity Model (AQMM) on 20th February. 2023. The meeting was attended by over 150 participants.

For more details visit the below link or scan the Q.R. code with your phone scanner app:

Link – https://www.youtube.com/watch?v=SaRrKcAoisA

Q.R. Code –

2. HRD STUDY CIRCLE MEETING ON AVERTING DANGEREOUS SITUATIONS

The Bombay Chartered Accountants’ Society organised a session on identifying potentially dangerous people on the basis of their facial features. Conducted under the aegis of the Human Resources Development Study Circle on 14th February, 2023 the hybrid session included presentation on reading ‘Red Flags on Face – An Iota of Alertness Can Avert a Potentially Dangerous Situation.’ by Naresh Kokal. It was attended by 78 participants.

For more details visit the below link or scan the Q.R. code with your phone scanner app:

Link – https://www.youtube.com/watch?v=SWyLuJVn0dM

Q.R. Code –

3. SESSION ON SECTION 138 OF NEGOTIABLE INSTRUMENTS ACT

The Corporate and Commercial Laws Study Group convened a session on Section 138 of the Negotiable Instruments Act and concomitant provisions related to prosecution for cheque bouncing on 13th February, 2023. Titled, “Prosecution for cheque bouncing: Overview of the law, issues and solutions,” the session was attended by 55 participants attended the session. Further sessions on other white collar criminal topics are in the process of being scheduled.

4. LECTURE MEETING ON DIRECT TAX PROVISIONS OF THE FINANCE BILL 2023

The Society organised a public lecture meeting on ‘Direct Tax Provisions of the Finance Bill 2023.’ Addressed by CA Pinakin Desai, the meeting was held at Yogi Sabhagruha on 7th February, 2023. This was the 5th lecture meeting by him and the 58th of the Society.

The lecture meeting was live streamed and witnessed by more than 5,000 persons including online viewers.

For more details visit the below link or scan the Q.R. code with your phone scanner app:

Link – https://www.youtube.com/watch?v=XxDNgV4bOVg

Q.R. Code –

5. STUDY CIRCLE MEETING ON ‘PROFESSIONAL CHALLENGES IN HANDLING INQUIRIES AND RECENT JUDICIAL PRONOUNCEMENTS RELATED THERETO.’

The Indirect Tax Committee organised a hybrid Study Circle meeting at the Bombay Chartered Accountants’ Society Auditorium on 6th February, 2023

The meeting focused on the topic titled ‘Professional Challenges in handling inquiries and recent judicial pronouncements related thereto.’ The two-hour meeting benefitted 73 participants from across who posed several questions to the speaker in the physical as well as virtual mode.

6. FELICITATION OF CA FINAL PASS-OUTS OF NOV 2022 BATCH

On January 30, 2023, BCAS felicitated the young pass-outs of Chartered Accountancy of the November 2022 batch at a special function held at the BCAS Hall. Expert guided the 180-strong audience on the skillsets and aptitude required for the respective profile job, while sharing some of the challenges faced and how to overcome them. The discussion was appreciated by the young achievers.

For more details visit the below link or scan the Q.R. code with your phone scanner app:

Link – https://www.youtube.com/watch?v=VMDuFfMd1YU

QR Code –

7. INCOME TAX KI PAATHSHAALA – LONG DURATION CERTIFICATION COURSE ON INCOME TAX

The BCAS Taxation Committee organised a Long Duration Certification Course on Income Tax – ‘Income Tax ki Paathshaala’ from 2nd January to 30th January, 2023. The meeting comprised 21 sessions. Attended by 212 participants, the course received an overwhelming response. Each of the participant was given a certificate of participation in the Long Duration Course organized by the Taxation Committee of BCAS.

8. ITF STUDY CIRCLE MEETING ON UAE CORPORATE TAX REGIME

ITF Study circle meetings were organised on UAE Corporate Tax Regime in two sessions on 6th January 2023 and 25th January 2023.

9. SESSION ON LAW FOR REDEVELOPMENT OF SOCIETIES

On 16th January, 2023, a session in the Corporate and Commercial Laws study group on the law relating to redevelopment of societies was organised. Over 80 participants attended the session and a very strong positive feedback was received from the participants.

10. 20TH RESIDENTIAL RETREAT – LEADERSHIP SKILLS ORGANIZED IN MUMBAI

The 20th Residential Retreat – “Leadership Skills and Management-The Chanakya Way” was organized on 14th and 15th January, 2023 at Keshav Shrusti in Bhayander, Mumbai. Around 38 participants attended the event which included games, singing and dancing in a perfect winter setting and camp fire. The event ended on the second day giving the participants a clarity on the roles and goals in each sphere of life.

Forthcoming Events:

Topics

Date

Speaker Name

Fees

Regn. Link

XIIth Residential Study Course on Ind AS

Friday to Sunday 24th to 26th March 2023

Various Speakers

Members
Double Occupancy  Rs. 22,420/- (Incl of GST)
Single Occupancy  Rs. 29,500/- (Incl of GST)

Non-Members
Double Occupancy  Rs. 24,780/- (Incl of GST)
Single Occupancy Rs. 31,860/-(Incl of GST)


Click here

Half-day Seminar on Basic Learning’s to be an IBC Professional

Friday, 24th March 2023

Various Speakers

Members – Rs.750 + 18% GST
Non-members – Rs. 1000 + 18% GST


Click here

Full day Workshop – Approach to litigation under GST

Saturday 25th March, 2023

Various Speakers

Members –
1,500+ GST = Rs.1770/-  (Physical)
1,500 + GST = Rs.1770/-    (Virtual)
Non-members –
2,000 + GST = Rs.2360/-   (Physical)
2,000+ GST = Rs.2360/-    (Virtual)

Click here

17th Residential Study Course on GST

Thursday, 22nd June 2023 to Sunday, 25th June 2023

Various Speakers

Enrolments on or before 31-03-2023
Members
Rs. 24,000 + GST 4,410 = Rs. 28,910
Non- Members
Rs. 27,500+ GST 4,950 = Rs.32,450

Click here

 

Thank You!

With Best Regards,

CA Chirag Doshi
Vice President

Please feel free to write to me at vp@bcasonline.org |