Are you looking for a CFO to work with virtually, and not sure how to go about it? Well, don’t worry because we’ve got this handled for you here within this article!
Here you’ll find everything you need to know about how to choose a virtual CFO. We’ll cover what questions you should ask, where and when to find the right person, and how much it will cost.
You’ll also learn why this type of relationship can be so beneficial for your business. You’ll also find out how it can prove to be less than beneficial.
It all depends on whether you do or don’t take the time and trouble to do your due diligence before taking someone on to fulfill the role.
By the end of this guide, you’ll have all the information needed to make an informed decision on whether or not working with a virtual CFO makes sense for your business. So keep reading.
Why You Need to Choose a Virtual CFO
Many people don’t need a full-time, in-office CFO. Maybe they’re just running their business as a side venture right now and trying to bring on employees.
Many businesses don’t even need full-time help at first–they just want somebody who can help them get things organized, so they’ll only have to hire somebody part-time or temporary.
If this sounds like you, hiring a virtual accountant or virtual bookkeeper is your best option.
If you want someone to help you with your business for a long time, you might need a virtual CFO. This is someone who works part-time for you.
You don’t have to hire them right away, but you can start with an independent contractor or temporary virtual assistant. Later on, you can transition them into your company.
What Sort of Skillset do You Want in Your Virtual Finance Department?
If you are still working for another company, or if you have a business that is not running yet, then you may want to hire an accountant. It’s one of the most important job functions in your business.
Now, this is especially true if they know about the accounting in your industry and the industry of the company you work for.
However, whether you decide to hire an accountant or a virtual CFO, you will need to look for someone who has experience in finance.
When interviewing potential CFO’s, you want someone who understands your industry and can help you get started on the right foot, even if only hiring a part-time CFO.
If you are looking for someone to help you with your money, it is less important if they have a lot of experience. But if you want someone to give you advice about running your business or hiring employees, then it is.
It’s also more important that they have a lot of experience. Make sure the virtual finance professional knows a lot about finances for the type of company you have.
Understand How Much You Should Pay a Virtual CFO
Many people offer their services as virtual assistants. Some of them call themselves virtual CFOs. Not all of these people are capable of being good virtual CFOs.
These people often have significant experience in finance, but they may not have an actual CFO background or their experience may not be what you’re looking for. They are not CFO candidates at all.
So you need to be careful when comparing CFO experience before hiring one, as the wrong choice can cost you big-time!
Don’t hire someone because they offer the title. Make sure they have the experience to do the job right. Otherwise, you might have to pay out of pocket if something goes wrong with, for example, tax planning.
Or worse, you might deal with tax fraud. It’s worth taking the time to do your research before hiring someone for a position like this. There is always a chance it could go wrong if you make the wrong decision.
Make sure that the virtual finance professional you choose is qualified and has references. Ask them about their insurance and security measures. This way, if something goes wrong with your accounts, you will be prepared.
Understand How You Can Find Good Virtual CFOs
There are two main ways to find a virtual CFO. The first way is to post an advertisement on websites like Monster, Indeed, or LinkedIn. Another option is to search for professionals through word-of-mouth recommendations from other business people in your network.
No matter which virtual finance department you choose, make sure they offer testimonials and references from past clients. References can help you understand the quality of service you can expect from the department.
This also shows potential clients that the department has experience working with other businesses in your field.
When you are looking for a virtual CFO, make sure to ask about their experience and what security measures they take with your tax planning and finances.
This is especially important if you choose to hire somebody through an independent contractor website. It can be harder for them to provide references or sample work than somebody who works for their clients.
After all, finding the right CFO to work with virtually requires knowing your options so that you can make the very best choice for the position within your company.
Are You Ready to Take On a Virtual CFO?
When you are looking to choose a virtual CFO, it is important to think about your long-term needs. For example, if you plan on hiring an in-house team of accountants in the future, hire someone who fits into your plans.
And of course, somebody who understands your company culture and how things work there. We hope this article helped outline everything you need to know about choosing the right virtual CFO partner for your business!
So, if you’re ready to take on the right virtual CFO partner for your business, contact us now!