Conducting business in cyberspace takes on a fourth dimension at Virtual Growth Inc. (VGI), a New York City-based consulting firm owned by Stephen King, CPA. VGI delivers traditional accounting services — all in the virtual marketplace — to companies and other CPA organizations.

What sets him apart from others working in the paperless environment is the market and approach. How fitting that his name is legendary for keeping clients on the edge of their seats.

The New Media Niche
In its 20 short months of existence, more than 127 corporate clients have outsourced their accounting needs to VGI, with 90 percent working in what Steve calls “new media industries:“ electronic communications, Website development, CD-ROM programming and any Internet-related activity.

The heart of the business is simple. Steve and his network of CPAs provide tax, accounting and business planning services to companies who either do not have the people on staff to handle financial management or want their controllers and related staff to spend time in basic financial operations. These businesses would rather invest more capital into growth, enabling these positions to provide value-added skills rather than concentrating on the nuts and bolts of financial management, a concept Steve is banking on for success.

“We serve as a resource to the accounting industry by making it easy for CPAs to outsource the write-up or bookkeeping function to VGI,” says Steve. “This allows VGI to provide real-time financial results to the CPA who can, in turn, serve as a CFO or advisor to their own clients.”

Public Practice or Financial Management? King Says Both
“We have replaced basic financial operations because we’re positioning VGI as a resource in the accounting industry,” he says. “Any business needs to have a good handle on their financial condition, but may not have, or want to spend, the time in reporting or managing their accounting needs. We step in, function as a company’s CFO and become a value-added advisor to a company or other accounting firm.”

Steve developed his business plan based on the ADP (Automatic Data Processing) model, because ADP derives its business by hiring a CPA firm as a value-added component to its own core services.

However, VGI’s concentration in high-tech isn’t rooted in notions of working in cutting-edge or trendy scenarios. Steve focuses in new media because companies within this industry understand e-commerce and file transfers. More importantly, they believe the Internet is a secure place to share information.

“As a virtual accounting department, high-tech companies understand the way we use technology. They have no hesitation transferring a file over the Internet. There still are many traditional small business owners who do not yet feel comfortable doing everything virtual. That’s why the existing accounting relationship is so important.”

New Roles for the CFO
Steve’s services range from Virtual Controller, a full outsourcing of the internal accounting function, and Virtual CFO, a strategic analyis of actual results, to accounting system design, tax services and other consulting. Where an existing accounting relationship exists, VGI will only provide those services that the accountant wants themt o provide because the company will not compete with current CPA relationships. However, this Ernst & Young veteran and former CFO of Amnesty International is careful to point out that the role of the CFO and similar positions within an organization cannot be eliminated.

Instead, he believes the CFO or related positions must function on a higher level in understanding the financial picture once he/she has been provided with the necessary information. The CFO can then use accounting experience and hard information to further strengthen the business and make it grow.

“While our goal is to become the largest, national outsourcing operation, companies soon realize how much money they save by working with us because we provide a good alternative to basic financial operations by eliminating the labor and space that dragged down their margin. Controllers and CFOs become a much more important entity to the company because they can concentrate on other arenas of business growth.”

Send Steve your own ideas and questions by email to sking@vgrowth.com or visit his Website at www.virtualgrowth.com.