A virtual CFO can help you save time and money, and the model is ideal for companies without a full-time finance team that still need access to financial expertise.
Typically, companies engaging a virtual CFO don’t have the resources for an in-house CFO but still require financial insight and expertise to make better decisions.
A virtual CFO can also help startups and small businesses with limited resources get off the ground by providing access to professional financial services. You’ll want to work with a trusted firm with experience in offering companies like yours the services you need.
What can you expect from a virtual CFO?
What is a Virtual CFO?
The CFO is the chief financial officer of a company. They have wide-ranging responsibilities, often overseeing the finances, defining the company’s systems and processes, and ensuring everything is done according to the law. These professionals provide strategic financial advice, counsel on tax issues, oversee financial reporting and help identify opportunities for cost savings.
A virtual CFO is a senior-level finance professional who works remotely and provides financial guidance to their client company. They are not the client’s employee; they are independent and work with companies through a contract or contract-to-hire.
An essential aspect of virtual CFOs is that the arrangement and contract period are specific to each company. They may work long-term with growing businesses with multiple locations or temporarily with a company going through a challenging event such as mergers or acquisitions.
They’re hired to help small business owners who do not have the resources or time to perfect their financial strategy. Virtual CFOs help businesses cut costs and improve their bottom line and can also serve as an extra layer of security for companies that don’t have the budget for a full-time CFO.
What Is The Difference Between a Virtual CFO and an In-House CFO?
A virtual CFO gives you all the benefits of an in-house CFO but none of the overhead. Working with a virtual CFO can be more affordable than hiring an in-house one because you can pay for only the services your startup needs.
A virtual CFO allows you to get an expert’s input from anywhere in the world, anytime. With one, you’ll have access to a seasoned professional who will help you make data-driven decisions for your business.
Some other benefits include:
Convenience
Access your virtual CFO whenever you need them! Schedule time for meetings or get someone on the phone when you are available.
Flexibility
Change your mind at any time if you find that the services are no longer needed or if your situation changes and you require different services from your virtual CFO. You may have additional flexibility with a virtual CFO because they can offer advice by email or phone rather than being required to meet face-to-face (although some will do both).
Cost Savings
Save money on office space and transportation costs. When working with a virtual CFO, office space or transportation costs are baked into their hourly rate. You can hire them for as many hours per week as needed without worrying about paying for an office that sits empty most of the time.
It is especially beneficial if you only need them part-time or infrequently — for tax season or quarterly financial reports every few months.
How to Know if Your Business Needs a Virtual CFO
How do you know if a virtual CFO is right for your business?
If any of these situations sound familiar to you, then outsourcing CFO services might be the perfect solution:
You need help with financial planning and forecasting. For example, you want to grow your company but don’t know how much capital you’ll need or when. A virtual CFO can help with this.
Key team members are struggling to provide adequate financial information. Maybe no one on your staff has experience managing budgets or forecasting revenues — or they can’t provide essential information that would allow you to make informed decisions about your finances.
A virtual CFO can provide training and oversight so that everyone understands the importance of accurate reporting, budgeting, and forecasting.
You don’t have enough cash to fund new projects or growth initiatives at the moment — but not because there’s anything wrong with the way your business operates today.
Instead, it’s because there’s something extraordinary about tomorrow that makes it worth investing in now! A virtual CFO can help you evaluate your current system of operations and recommend strategies for improvement.
What Do Virtual CFO Services Look Like?
Virtual CFO services are an excellent option for businesses that want to expand their operations but don’t yet have the resources to hire another employee.
They help with various tasks, like:
- Budgeting
- Forecasting
- Financial modeling
The main benefit is that your business gets the expertise of an experienced professional at a fraction of the cost of hiring someone full-time.
Here are some common examples of what virtual CFO services can do for your company:
Budgeting
A virtual CFO will work with your team to create a budget that meets your needs and helps you achieve financial goals. They’ll also help you identify where costs may be out of balance so you can make adjustments.
Forecasting
They help companies better predict what might happen to sales, expenses, margins, and other factors that affect their bottom line. A robust forecast also helps teams know if they’re on track to meet their goals.
Financial Modeling
A sophisticated method for projecting future financial performance based on data from previous years or other available resources can help you make more informed decisions. A virtual CFO will use this data to help you model your business.
Ready for Virtual CFO Services?
Small business owners and entrepreneurs sometimes need help to make better, data-driven decisions. A virtual CFO can make sure you’re getting the most from your limited resources by improving:
- The budgeting process
- Cash flow
- Taxes
- Payroll
The value a virtual CFO offers businesses can’t be overstated. At Founder’s, our experienced team provides this value and more. Contact us today to learn how your business can benefit from excellent virtual CFO services!
