As a business person, your main goal is to grow the revenue of your company or firm as much as you can. It brings great satisfaction seeing that you have accomplished the financial goal that you have been aiming for. The only way you can achieve this is by carefully planning your finances. This is where the role of a virtual CFO comes in.
Definition
Who is a virtual CFO? Does my business need one? Such questions may be lingering in your mind. A virtual CFO is a person who performs all the services of a Chief Financial Officer but remotely. Instead of being housed within the organization, the virtual CFO performs his or her functions on a part-time basis.
Being a small business owner or having a start-up company comes with the challenge of having limited capital. Outsourcing financial expertise such as that of a CFO, therefore, enables you to access skilled professionals at a reduced cost. A virtual CFO provides various services such as…
• Financial reporting
• Risk management of finances
• Financial planning
• Cost management and debt reduction.
The scope of work of the Virtual CFO may vary depending on a company’s financial needs and its size. Payments can either be made by the hour or on an agreed flat monthly rate.
Benefits of hiring a virtual CFO
1. Cost control
Hiring an inhouse CFO will cost you hundreds of thousands of dollars every year. This may be very inconvenient for a small business or a start-up. With a virtual CFO, you only get the required services when you need them. You are therefore able to control your expenditure and re-invest profits back into the business.
2. Customized services
A virtual CFO can customize his or her skills to suit your company or business. He or she will only generate reports, forecasts and processes that are relevant to your company. Changes can also be made as to the revenue of your company shifts.
Handling your finances might be quite simple at the initial stages of your business. As your business continues to grow and become more complex, it is vital to hire the services of a virtual CFO. Their professional services will lead you to achieve your financial goals.
