Most companies can benefit from the advice and expertise of a Chief Financial Officer. But, for most small and medium businesses, the cost of another full-time addition to the C-Suites just doesn’t make sense. Enter the virtual CFO, a professional from outside the organization who fills the role as needed. Not sure how a virtual CFO could benefit your business? Consider the benefits below:
1. Get diverse expertise.
Most virtual CFOs work with a number of clients, which gives them experience with a wide range of businesses. Because of this, they have broader insights than someone who has only worked with a small handful of businesses within your industry. This allows them to be more innovative when it comes to fulfilling roles that include reducing costs, managing financial risk, and engaging in activities like financial planning and reporting.
2. Customize the role.
Chances are, a smaller business does not have the workload to make a full-time CFO worthwhile. Virtual CFOs can work on a scope that fits both your budget and your business’s specific needs. You can have someone who provides more intensive support during key periods such as quarterly reporting times, transitions to new business models, and other events.
3. Save money.
A virtual CFO saves your business money on two different fronts. First, a CFO’s expertise can help your business run more efficiently. They will identify areas where you can cut costs, allowing more of your profits to stay in your hands.
Second, they will allow you to pay only for the services that you use. Some virtual CFOs work on an hourly basis while others charge a flat monthly fee. By making an arrangement with one whose availability fits your needs, you can ensure that you are paying just for the services you need.
4. Stay agile as you grow.
As a business grows, its financial management needs often grow with it. A virtual CFO can help you navigate tricky passages during rapid growth, then take on a smaller role at a later time. Or, a small business may find they only need a CFO for a few hours a month at first, but more as the size of their clientele grows.
The beauty of a virtual CFO is that they are in a position to provide your company with exactly the level of guidance you need and can afford at any juncture. By choosing the right individuals for the job and using their talents as needed, you can make your business more efficient, allow for smoother day-to-day operations and put yourself in the right position for smart and sustainable growth.
Learn more about our virtual CFO services and get a customized proposal for your business.
Sources:
https://www.nasdaq.com/articles/examining-the-growing-need-for-a-virtual-cfo-2020-09-04
http://blog.ignitespot.com/what-is-a-virtual-cfo-and-does-my-business-need-one