What is a Virtual CFO and When Should I Hire One?

The thought of hiring a Chief Financial Officer (better known as a CFO) can be intimidating.

It used to be that hiring a CFO was an expense that only large, multimillion dollar enterprise corporations could afford. 

That has all changed in recent years, however, with companies both large and small opting to outsource these types of services to a virtual CFO.

With a virtual CFO, small to mid-sized companies can benefit from the financial expertise and guidance of an experienced, well-rounded professional, without committing to the high expense of adding a full time c-suite executive to their staff.

What Is a Virtual CFO?

A virtual CFO is an operational and financial expert who performs the services of a chief financial officer. But instead of delivering those services in person, they work remotely on a part-time basis.

They are usually paid by the hour or via a flat monthly rate. And typically at a MUCH lower rate than an on-staff CFO, making it more attainable for smaller businesses that are  seeking financial growth and guidance.

What Does a Virtual CFO Do?

On a very high-level, CFOs provide financial strategy, planning and forecasting. They ensure the business is in the best financial position it can be in so it can grow, run more efficiently, secure funding, remain compliant, or even prepare for eventual sale.

Other typical functions of a virtual CFO are: 

  • Overseeing and manage internal finance and accounting procedures
  • Optimizing cash flow management in relation to debt and equity
  • Providing accurate financial reporting
  • Identifying business risks and mitigate them
  • Identifying underperforming areas in the business
  • Managing the relationship with stakeholders
  • Handling statutory and other compliance matters
  • Providing detailed plans and implementation strategies to increase revenue, gross profit and net worth
  • Assisting with retirement planning

When should I hire a Virtual CFO?

Our belief is that companies with revenue greater than $250K can greatly benefit from the financial insights and guidance of a virtual CFO.

When you see opportunities to grow, cash resources should already be optimized so they’re ready and available to support them. So if your overall goal is growth, it is in your best interest to have a financial professional like a virtual CFO helping you ensure your cash flows and overall business is financially optimized.

But knowing exactly when to hire a virtual CFO depends largely on the business finances and growth expectations.

If your business is becoming more complex, experiencing cash flow problems, or does not have extensive knowledge of profit and loss, a virtual CFO may be right for you.

Even if you already have a controller or an accountant, they may not know how to analyze and actualize your financial data so it can be used to model, forecast and plan to drive growth the way a virtual CFO can.

If you’re looking for a virtual CFO to help you grow your business, we’re here to help.

Our virtual CFO partnership begins with a clear understanding of your goals, followed by a strong plan that includes projections, analysis, and tools for implementation.

Also, If (and when) we find ways where you can legally keep more cash and maximize deductions, we help you implement those changes and include ways to continue saving throughout the year.

Let us fuel your business growth with a solid profit plan and optimized cash flow.

Find more information on our Virtual CFO services here

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