What is a virtual CFO?
The Virtual CFO (CFO – Chief Financial Officer) is a new concept. It’s a way for small businesses to get CFO support that they wouldn’t have been able to afford previously.
Small businesses that hire a Virtual CFO get access to an experienced financial professional at a fraction of the
cost of a full-time CFO.
The services will differ from firm to firm, but usually a Virtual CFO will:
- Handle all the duties of a traditional CFO, but work remotely and on a part-time basis.
- Monitor the financial health and well-being of the business, usually with cloud technology.
- Offer financial insight and guidance on all company decisions and issues.
- Provide back-office functions such as managing accounts ledgers, depending on the client and their needs.
How do we offer a virtual CFO service
We use cloud technology which enables us to provide Virtual CFO service mainly because:
- Cloud solutions can share data, making it easy to synchronise and transfer data between different systems.
- Cloud accounting software gives real-time reporting and analytics features. These help you gain insight into a client’s financial condition.
- Cloud accounting and business management solutions are accessible anytime, anywhere. Hencewe can offer Virtual CFO services to our clients from any location.
Advantages for small businesses
Having access to a Virtual CFO can be a big benefit for a small business. Most of small business owners can’t afford an experienced, knowledgeable CFO on a full-time basis and may never consider hiring one.
That’s a problem, because many small businesses fail within the first three years. Reasons include failure to set themselves apart from the competition, and an inability to find a profitable business model. With an accounting professional acting as their Virtual CFO, they could keep their financial goals and realities clearly in sight.
A virtual CFO is an affordable alternative to hiring a full0time CFO and can make a big difference to a small business, by:
- Creating budgets and forecasts.
- Pinpointing problem spending and highlighting trends.
- Validating or discouraging business decisions with financial well-being in mind.
- Improve cash flow and guide the business to reach its goals and grow.
These are abilities that the vast majority of business owners don’t possess – but they really need them in order to succeed.
Why are virtual CFO roles becoming more common?
You may not have even heard the term until recently. Trends in the accounting profession have led to value-added services like Virtual CFO becoming more common:
- Increased competition and improvements in technology.
- Compliance and tax preparation becoming commodity services.
- Automation of basic functions, lowering the value of traditional services.
- Small businesses outsourcing non-core functions like accounting, in order to lower their costs and obtain better talent.
- Software that provides true, real-time cashflow insight for proper decision-making.
We have changed the we work
We embrace the role of a Virtual CFO, by shifting from traditional services and implementing following changes:
- Stopped seeing process-driven services as the core of our business.
- Offer more consulting services.
- Build meaningful, face-to-face relationships with our clients.
- Talk to clients often enough to manage their issues proactively.
- Understand and provide feedback on our clients’ business goals.
- Help our clients achieve their goals.
- Become a trusted business advisor.
Our Virtual CFO service are bundled with our packages. If you need standalone CFO service. Please get in touch with us.