In the present time mostly everyone wants to either work by starting their own venture or by providing their services individually. There are very few persons, who want to work as an employee. Due to this there is a sharp rise in the gig economy. In such economies people prefer to work on contractual basis, freelancing, part time jobs, etc instead of working as an employee for a particular person or entity. Just like that virtual CFO services are available which are the intrinsic part of the gig economy. Because here instead of hiring a CFO as an employee you can take virtual CFO services which will work remotely for your organization just like the traditional CFOs. Hence we can say that virtual CFOs and the gig economies are a perfect match for one another. If you want to understand the concept in more depth, keep going with us till the last line of this blog.
What is a Gig Economy?
An economy where people are not working in the traditional way of full time employment, instead they are working as gigs like freelancing, contract basis, project basis, tenders etc. such type of economies are called gig economy. Here people are free to work as per their need and flexibility. Here there are more chances of growth as well as development in the market, because people give their 100 percent as they are not working for anyone instead they are working for themselves.
In the gig economies people are putting their full efficiency in the work and the working hours are also not fixed. As personal growth is involved here in such kinds of economies, people don’t hesitate to work as much as required. One of the most common examples of this is virtual CFO service providers. If you are taking their services they are with your organization in every possible aspect of your entity’s financial requirement.
Relationship Between Gig Economy and Virtual CFO Services
Virtual CFO services are one of the most common examples of the type of work in the gig economies. In the traditional times people or entities hire an individual as their CFO that is Chief Financial Officer who is gouging to look after the finance of the company. They are very costly because their monthly expenses are too much. It is not easy for the newly started business to hire their own CFO. But slowly and gradually to solve this issue Virtual CFO Services has been evolved. They are cost effective as well as easily available in the market. They are as efficient as the virtual CFOs and work more efficiently with the help of advanced technology.
Why Virtual CFOs and Gig Economy is a Perfect Match?
As gig economies are all about the work form in the gigs, which includes the work or services provided by the people individually without entering into any kind of employment agreement. Here there will be no employer employee relationship between the one who is providing services and the one who is obtaining services. Virtual CFOs are doing the same for the companies or the individuals. This is the reason it has been said that virtual CFOs and the gig economy are a perfect match for one another.
Finding Talent for Evolving Finance Function
Finance functions which are in the olden times have changed drastically in the last few decades. Hence it is the basic and important need of the hour that traditional CFOs should evolve and start learning things beyond accounting, auditing and bookkeeping services. Also it is very difficult now to keep the records of the business up to date without using technology. Hence to solve both these issues virtual CFOs had come. They are the deadly combination of the virtual CFOs and technology. Due to virtual CFOs now it has become easy to find talent for evolving finance functions.
Putting Independent to Work for Finance
Because of the following things it is good to put independent to work for finances:
Flexibility to Work
Flexibility to work increases the efficiency of the workers. Efficiency increases the productivity of the workers and productivity increases the delivery of the work. Easy and comfortable work environment makes work easy as well as interesting for those who are working for you. Hence in short flexibility to work is good for the gig economy as well as the one for whom you are working.
Diverse Skill Sets
When you are hired by a particular person to look after your finances like Chief Financial Officer, your organization will just have access to that particular person’s talent and skills. But if you take virtual CFO services it will come up with various diverse skill sets. This will not only be good for your organization but also good for the development and growth of your entity in the market among the number of competitors.
Cost Effective Solutions
One of the most important reasons for shifting of the market from traditional services to newly evolved services is because of the difference in the cost. Virtual CFO cost is very less in comparison to the annual cost of traditional CFO in an organization. This is another reason for the shifting of the market from the traditional economy to the gig economy.
Access to Specialized Talent
If you are putting individuals to work for the finance of the company it means you are welcoming the axxess of specialized talent in your organization. This makes the company grow and develop with double triple speed. Traditional methods are not technology friendly due to which they are outdated and not suitable in the gig economy. Hence in order to grow and develop in the market you must shift from traditional ways to newly evolved ideas.
Adaptability to the Market Changes
As independent persons cannot compromise with their services, they are adaptable to the market changes and work accordingly. They cannot say things like I am not aware, I cannot do that, it is not my specialization etc because it may amount to their replacement. Hence they learn as per the market requirement and provide you their services accordingly.
Customized Solutions
In the market there are hundreds of businesses floating. They are of different nature and types. Their financial requirements may vary sometimes. In this case customized services can make their work easy and cost effective. For example, an entity which is new has less finance compliances in comparison to old and experienced entities. Hence both old and new entities can customize their work requirement through the independent finance service provider and he or she is going to charge accordingly.
Scalability, Reliability and Credibility
Putting individuals to do your finance work will make your company different in the market. This will increase the scalability, credibility as well as reliability of your business in the market. All these three things are achievable by the independent workers for maintaining the finance of your organization because they are putting their 100 percent efforts as they are service providers now.
Is the Gig Economy Good for India?
In the last few years India is also moving towards a gig economy. Companies started hiring or taking services of the people on a freelance basis as well as contractual basis. Virtual CFO demand is very high in the Indian business industry and it is expected that in the year of 2024, it will increase more. By seeing the advantages which are given below it can be said that the gig economies are definitely a good choice for a country like India where the population is very high.
Key Advantages of Workers in a Gig Economy
Some of the key advantages or we can say benefits of the workers in the gig economies are:
- Flexibility of the work makes them more efficient and productive
- Work life balance is there which helps the workers to maintain their personal as well as professional life
- Innovation and fresh perspective of the workers helps them to get more and more work opportunities
- More work opportunities helps them to choose work according to them
- Chances of their growth and development also got increased
- Their earning potential got increased and they can earn more now
- No restriction on the earbong factor of the workers
- Commuting stress got reduced which makes them stress free
- Opportunity to access the global market
Conclusion
If you read the above blog carefully, then you must understand till now that virtual CFO and gig economy are the perfect match for one another. There are chances in the year of 2024, this combination will get more attraction and place in the Indian economy. This will help the Indian economy to grow and develop more efficiently. There are many advantages of the gig economies which have been discussed here like flexibility, adaptability etc. All these things are very important for the growth of the business as well as workers. If workers are satisfied their efficiency will automatically increase and their contribution will become quite evident after that.
