An Introduction to Virtual CFOs and the Services They Offer

An Introduction to Virtual CFOs and the Services They Offer

Businesses are nowadays turning towards virtual CFOs for various reasons. The work of a traditional chief financial officer used to be full-time and in-house. These days, businesses can easily hire a part-time or remote working financial officer to get the job done, with a number of additional benefits. They are called virtual CFOs, and they have proven to be the better option for small and medium-sized businesses looking for CFO accounting and advisory services.

Some of the key benefits of have a virtual CFO are:

Cost Savings

1. Cost savings – A traditional in-house CFO can cost you a lot of money based on their experience, the kind of services you provide, and your basic revenue, whereas a virtual CFO service is undoubtedly cost effective, easier on the cashflow, not to mention providing more targeted and tailored services tailored to the businesses needs. It’s also a great option for startups.

Keep an eye on cashflow

2. Cashflow management is important to any business, and arguably more important for small and medium-sized businesses. A virtual CFO will help you keep a close eye on cashflow and help, anticipate large outflows, conserve cash, plan for significant investments and provide solutions to help your business meet its payments and financial commitments

Take control with budgeting and forecasting

3. Planning for any business is key! Budgeting to control and keep track of your businesses income and expenditure and forecast to consider different scenarios of your business strategy. Answer questions like, when are we going to be in a position to hire our next employee? When can we invest in better equipment or new assets? What kind of impact will a price or fee increase have on our bottom line? 

Financial analysis

4. How does your business’s performance compare to that of your competitors or industry benchmarks? If not, what can you do to improve your business’s performance? Financial analysis will give new meaning to how you look at your business, empower you to make better decisions to improve your bottom line. 

Minimise risks and take advantage of opportunities

5. What happens if your website goes down, or a key person leaves your business? What if there are legislative changes that are detrimental to your product or service offering? The risks are aplenty and someone needs to keep their eyes and ears out for changes which may impact your business for better or worse. 

Small and medium-sized businesses, startups, nonprofit organisations, and high-growth companies are best suited for employing virtual financial officers. The advantages and value of a Virtual CFO are numerous. Cost effective, a deeper analysis and understanding of your business, empowered and confident decision making means better profits for your business.

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