Virtual CFO Services

Every business can benefit from a CFO. This statement applies to startups, small businesses, large enterprises, and nonprofit organizations. The problem is that it is sometimes difficult to find the right CFO in a small company.  If your growing business needs the financial guidance and expertise of a leadership position in your business, a Virtual CFO might be what you’re looking for. Some of the reasons to hire a virtual CFO are as follows-

Cost-effective

A virtual CFO is less expensive than hiring a full-time CFO to work at your business. An experienced in-house CFO will demand a high salary and rightly so. But a virtual CFO will only charge you for the time and products needed for your business. Depending on your needs, this could be as little as a few hours a week. You also won’t have to add a virtual CFO to your payroll, give them perks, or worry about other costs associated with hiring a full-time employee.

Experience

All virtual CFOs have financial experience. However, a traditional in-house CFO will likely spend most of their career working with just one or two companies. This means that their overall experience is somewhat limited. But a virtual CFO is much more adaptable. They will have experience working with several companies in different fields. So there’s a better chance that an outsourced CFO knows how to meet your business needs because they’ve seen it all before. This will bring a lot of value to your business.

Flexibility

So many virtual CFOs are part of a larger outsourcing service. Usually, these virtual CFOs will be a better contact within the organization. That said, this person will likely work behind the scenes with others to meet your business needs. This means further enhanced expertise as you will likely have two, three, or even more CFOs working with your company. The Internal CFO will not have these resources at his disposal. In addition, if a full-time employee falls ill, leaves work, or goes on vacation, you have no one left to replace them. With the virtual CFO, service continues no matter what happens. Any conversion will go smoothly and without interrupting your process.

Accurate Financial Reporting

Even if you have an accountant or controller, you may not have a standard format and reporting for all of your financial documents. This can become a problem when it comes to preparing certain financial statements, making forecasts, and preparing for tax season. Any experienced virtual CFO service will use GAAP. They will also guide your accounting department to standardize everything at every level. Taking this approach will ultimately keep your records organized and improve the accuracy of your financial statements.

Adaptability

Outsourced CFOs and virtual CFO services have worked with dozens of companies. This means they have seen and dealt with a wide range of personality types. The virtual CFO will be an expert at adapting to your team’s needs. Therefore, there will be no problems or obstacles in managing or delegating tasks. In addition, a virtual CFO can meet almost any challenge facing him. They have been in this position before and they will not be intimidated by an obstacle. It’s unlikely that your business type, industry, and growth stage is something they’ve never seen before. Even if you introduce them to something new, virtual CFOs have exceptional problem-solving abilities.

Credibility

The time-honored virtual CFO has a proven track record. This means they have raised money and solved problems for other companies in the past. You won’t have to worry about hiring someone who feels the need to prove themselves and is willing to experiment with your business. An experienced Virtual CFO will use proven methods and approaches to improve your business. They will also have a rich network of other people who can help your business grow. If you want to grow, sell, or take another big step forward for your business, the CFO can guide you and match you with the right people to meet your needs.

Shorter Learning Curve

Whenever you hire a new employee, you can’t expect them to know from day one. Depending on their role in the company, their training can take weeks or even months. By the time the person can function at full capacity, 6, 12, or even 18 months may have passed. It’s not very effective. While a virtual CFO won’t be at full capacity on day one, the learning curve will drop dramatically. They have a lot of experience integrating into new businesses, so they know how to get up to speed and maximize efficiency as quickly as possible. A virtual CFO can assess the current state of your business and proceed accordingly in no time.