13 Nov What Does A Virtual CFO Outsourcing Service Do?
A virtual CFO provides your small business with much of the same services and expertise that an internal CFO provides at a fraction of the cost. How is it possible? When you hire an internal CFO, you have a regular salary to pay each week. Extended contracts are irrelevant and you only pay for services and time. You also do not need office space for your virtual CFO. A virtual CFO also provides your business with the services you need.
A virtual CFO is a service designed to fill the existing skills gap in an organization that needs high-level financial advice but does not yet need a full-time employee for the position. A virtual CFO has the expertise and ability to work with your current staff by providing accounting, sales, training and staff assessment advice, as well as strategic planning.
SERVICES OF A VIRTUAL CFO
Here is a list of services that are offered by a virtual CFO;
- 12-month cash flow forecast
- Planning and reduction of corporate debt
- Strategic planning of projects and activities
- Pricing and profitability analysis of service lines
- Capabilities of acquisition, retention and profitability of customers
- Key performance indicators (establish, monitor and improve)
- Assessment, documentation and improvement of business processes
- Bookkeeping and Performance Report (by project, department, team and department)
BENEFITS OF A VIRTUAL CFO
There are many reasons why many small businesses today choose virtual CFO rather than a full-time CFO. If you are not part of these companies, it may be time to reconsider your decision.
Hiring a virtual CFO comes with lots of benefits, they are;
- Virtual CFOs are flexible: Flexibility is one of the benefits of hiring a virtual CFO. Most virtual CFO providers now allow you to specify the number of hours based on your needs, which means you’ll only pay for what you need. Unlike their part-time counterparts, virtual CFOs can be solicited at any time.
- They can adapt to your changing needs: As small businesses grow and develop, so do their needs. The virtual flexibility of CFOs allows them to adapt to the ever-changing needs of your small business. The financial assistance they provide can be modified according to your current needs.
- You work with a team, not one person: When you hire a full-time CFO, you use the knowledge of a single professional, which is usually limited. A virtual CFO, meanwhile, is composed of a team of professionals, each with their expertise. As more and more people meet your financial obligations, the time it takes to fulfill them is greatly reduced.
- They allow you to focus on your core business: By outsourcing your financial documents to a virtual CFO, it’s easier for you and your employees to focus on the core skills of your business, allowing you to maximize their talents. VPs are also experts in what they do, which means they do not need supervision. This allocates more time to you to focus on other important business-related activities.
- They provide a vast knowledge and expertise: This is done by a team of knowledgeable and highly experienced financial advisors who have served different clients with different needs in different sectors. When you hire a CFO, you gain access to a vast pool of knowledge and expertise that you will never get when you hire a single full-time CFO.
- You can get them at a fraction of the cost: Start-ups and SMEs typically do not have the resources to hire a full-time CFO, especially since a financial advisor at this level can be expensive. Virtual CFOs are hired based on the services they provide on an as-needed basis, making them suitable for businesses with limited budgets. You can also work with a team of experts, which allows you to make better money than a full-time CFO.
In conclusion, if your business is too important for you to spend all your time worrying about your financial health. What is required from you is to pay more attention to growing your business. A virtual CFO might be exactly what you and your business need.
If you are planning your business growth, a virtual CFO will likely become an asset to your organization by providing strategic planning and relevant information. A virtual CFO will help the business owner avoid the many pitfalls that are hidden from him because of his emotional attachment to the business. A virtual CFO will describe the best path to growth, profitability and success while supporting businesses throughout the process.