Chief financial officers play an important role for businesses of any size. From supervising bookkeeping to preparing financial statements to projecting future performance, a CFO ensures the business stands on solid financial footing.
But hiring a full-time CFO may be out of reach for small and mid-sized businesses. It’s quite expensive to pay the salary and benefits for an executive skilled at creating budgets and forecasting financial statements. That’s why many smaller businesses rely on virtual CFO services to keep their financial house in order.
A virtual CFO uses cloud-based software to complete the duties customarily performed by an on-site CFO. By handling the accounting, bookkeeping, payroll, taxes and projections, a CFO service frees up a business owner to focus on strategic growth and planning.
Here are a few ways a virtual CFO service is beneficial to a small business owner:
1. Financial analysis
Along with taking care of the day-to-day responsibilities, a virtual CFO offers an analysis of your business’s cost centers and revenues. This is key in developing strategies to increase growth while controlling expenses.
2. Decreased chance of fraud
By relying on one employee to handle everything related to finance, the likelihood of fraud or theft increases. A third party working off site provides greater internal controls and curtails internal theft.
3. More time
When business owners also handle the financial aspects of the operation, they don’t have much time left to focus on the big picture or to network with potential clients. Allowing a virtual CFO service to handle complex financial matters free up time to grow the business.
Thanks to cloud-based software, small businesses can afford their own CFO. Get in touch today to discover how affordable a customized, virtual CFO service can be.