What Are the Benefits of Using a Virtual CFO?

Do you know that 82 % of businesses fail due to poor cash management?

You already have a bookkeeper to record financial records and a tax accountant to file annual returns. But the question is, who is keeping an eye on your budget, cash flow, profitability levels and financial risks?

Most small business owners believe hiring a virtual chief financial officer is limited to big corporations only. However, that’s not true. Virtual CFO supports both small businesses and big corporations by offering financial analysis and insights.

CFOs also help your business develop direction and identify new investment opportunities. Some companies avoid hiring CFO because of the assumption that a CFO will require an office, bonuses or even a six-figure salary.

But with a virtual CFO service, it’s quite different. Virtual CFOs work part-time from remote locations while still offering top-level financial strategies. Are you still not convinced why hiring a virtual CFO is a good move?

Here are the benefits of using a virtual CFO?

Flexibility

When you hire a virtual CFO, you have control over their working terms. You can decide the numbers of hours they will work and the type of projects they will work on. You also get to determine the type of experience the virtual CFO should have before hiring them.

When hiring a virtual CFO, you can also opt to hire an entity instead of an individual. Hiring an entity gives you the chance to work with a team of CFOs who will offer a better and more professional insight into financial matters.

Virtual CFO Are Cost-Effective

As a business owner cutting down costs helps increase your profit. A major merit of hiring a virtual CFO is cost savings. Let’s say you have a project that needs the input of a CFO for only 40 hours a week. It would not make sense to hire a full-time CFO in such a case.

The best option would be to hire a virtual CFO to offer the services you need. If your project needs some special attention, you can always request the Virtual CFO to commit some more time to your project.

Besides, the cost of hiring a virtual CFO is less than that of hiring an in-house CFO. A virtual CFO doesn’t require an office. You are also not obligated to offer bonuses and other benefits to a virtual CFO.

When hiring Virtual CFO services, you can choose virtual CFO packages that meet your business needs.

Multiple Industry Experience

Virtual CFOs have worked with multiple clients within the industry. They have a unique experience in handling a wide range of projects. If you hire an entity to work on your project, they will connect you with a team of CFO who has vast experience in your industry.

A CFO with multi-industry experience can offer multilayered insight into your financial projects. Plus, hiring a virtual CFO allows you to tap into professional expertise at a fraction of the cost of a salaried CFO.

Network

Networking within the business industry is a key factor for success. A good network helps you learn about new production methods, new markets and other opportunities you can utilize to gain a competitive edge. Virtual CFOs, having worked with multiple clients within the industry, have a rich network.

If required, virtual CFOs can leverage such networks to help your business. They can connect you to other business owners and opportunities that can promote the growth of your business.

Compliance

It’s the responsibility of the business to comply with regulatory measures put in place. Financial measures are usually very technical and require professional insight. Virtual CFOs are professionals keen on regulatory compliance.

They follow accounting and financial principles and other regulations when handling projects. CFOs also help you design customized templates for your clients. This template promotes your brand and offers your customers the relevant information they need.

Increased Revenue

Generating revenue is one of the key reasons most businesses exist. Virtual CFOs are financial experts, and hence they can shed insights to help you generate more revenue. If you hire virtual CFO services, they will keep track of financial trends, assess financial risks and ensure proper management of your finances.

They can also help you identify untapped resources and markets that you can utilize to your advantage.

Forecasting

Proper forecasting saves your business from future losses. Through forecasting, it’s easy to determine future risks and trends that can affect your business’s performance. Virtual CFOs have professional experience in matters of finance and business.

They are highly qualified to plan and execute financial decisions. From their vast experience, virtual CFOs can analyze financial patterns and models to forecast future financial trends.

This way, they will predict investment decisions and budgets that can ensure your business’s growth.

Quick Integration

Quick integration within the workplace helps employees settle faster and get the dice rolling. Virtual CFOs, having worked with many teams simultaneously, find it easy to get integrated into new teams. Their experience makes it easy to work with employees possessing different personalities.

Also, virtual CFOs offer on-demand services, and it might not be necessary to introduce them to all employees within your organization. You can limit their interaction to only those personnel they need to collaborate with.

A Sounding Board for Your Business

As your business continues to grow, it might be quite challenging to handle all the work on your own. In such a case delegating some roles would be essential to guarantee the continued success of your business.

Virtual CFOs can act as a sounding board for all your business and investment decisions. You can delegate some of the roles to them. In most cases, virtual CFOs are willing to take up roles that a full-time CFO would not be willing to handle.

Discover the Benefits of Using a Virtual CFO Today

Chief financial officers (CFOs) track cash flow, analyze your company’s financial strengths and handle other key financial decisions. When you hire a virtual CFO, there are various benefits you get to enjoy.

Are you looking for reliable services near you? At Bennet Financials, we got you covered. Our priority is to optimize cash flows and generate more revenue for your business.