Financial management has always been and will always remain an intricate task. While this is understood, on the other hand, dealing with the exorbitant costs of in-house financial management has become a challenge for companies, especially startups and SMEs. These challenges point towards a smarter and more cost-effective solution, which is precisely called virtual CFO.
A virtual CFO serves as a regular CFO, except that he or the team aren’t full-time employees of a company. They are external resources integral to its in-house financial operations and monetary welfare.
Lately, India has become a significant hub for hiring virtual CFOs. Many SME companies and startups across the US have outsourced CFO operations to Indian firms that provide virtual CFO services.
The reasons are obvious. However, many may wonder, why India, in particular, is so popular and the best for outsourcing CFO services. In other words, why is India the best for virtual CFO services? Highlighting a few unique benefits will help understand India’s unique proposition when it comes to virtual CFO.
Why Outsource CFO to India? | 4 Reasons You Must Choose India for Virtual CFOs
- Reduced Costs
Over the past two decades, the outsourcing sector has significantly contributed to India’s economic growth. One of the most prominent reasons for India’s progress within the outsourcing realm is the considerable cost-savings. that companies save when they partner with Indian companies.
For instance, the annual median salary of a CFO in the United States is approximately 390,000 USD, whilst that of a CFO in India is somewhere around 50,000 USD. Here, the difference is pretty evident. But that’s not it. Salary, coupled with costs related to employment benefits makes it even more expensive to hire a full-time CFO in the US. As a result, hiring a virtual CFO from India proves way more reasonable.
Note – The salary figures mentioned above are approximate. They are given only to highlight the cost advantage and savings that follow.
While outsourcing financial operations, companies neither pay salaries nor pay any other employment-related costs such as insurance, etc. Choosing India for virtual CFO services can help companies in the US save up to 60 to 70 percent of the full-time CFO cost.
- CFOs with Global Experience
Many virtual CFOs currently working in India have at some point in time worked in the western countries, especially the US and UK at higher positions. These professionals possess extensive experience in handling US financial affairs. Additionally, they know US GAAP and understand the country’s financial environment, taxation laws, compliance very well. Having them onboard, although externally, helps a lot as companies in the US get the same level of expertise and experience at a substantially lower cost.
- Time Difference Advantage
India is blessed with a strategic time zone that allows Indian firms to offer their clients in the United States the time zone advantage. As individuals or teams providing virtual CFO services, Indian firms work during the daytime to manage the financial affairs of their clients, who are in a time zone that observes night during that period. So, the clients enjoy round-the-clock operations. Their finances are continuously monitored and worked on. It also expedites tasks related to financial management and avoids delays.
- Extensive Resource Base
Alongside the cost advantage, India offers its extensive resource base that helps foreign companies leverage the best and most-suited ones to their benefit. That makes India one of the leading countries when it comes to talent. The availability of a higher number of resources also gives companies the scalability benefit. Indian firms can quickly scale up the virtual CFO team and its operations for their clients.
Hire Biztree for virtual CFO services in India. The firm has everything from resources to technology and expertise to experience to handle the complex financial management requirements of companies in the US. To know more, write to Biztree at support@biztree.in.