Virtual CFO services give you access to a chief financial officer (CFO) who can help your business grow by implementing ways to raise capital, set key performance indicators (KPIs) and review and analyze financials to identify risks and big-hit opportunities. Companies with under $10 million in revenue can seldom justify the expense of a full-time chief financial officer.
Are you frustrated with the state of your firm’s finances? You’re not alone. That happens to a lot of small business and nonprofit leaders. Or maybe it has begun to dawn on you that your financial branch can be a competitive advantage and open the doors to new opportunities. You just need solid numbers and someone who can interpret the story behind the numbers to begin to step ahead of the competition.
A part-time CFO could be just the right solution for your small or growing business. But, what do they do and how much do they cost?
What to expect from Part-Time CFO Services
1. Understanding You and Your Business
Part-Time and Virtual CFOs will want to know what’s bothering the business owner most. To help a company get on track, a part-time CFO needs to be aware of the key issues the company is facing financially. The business owner will start by asking some basic questions about your financial situation and will want you to do most of the talking at first. When your interim CFO reviews your financial statements, they will have a better understanding of the “what”, but not the “why”. That will be important for them to understand as well.
2. Align Financial Statements with Stated Goals
A part-time CFO can identify and manage a bookkeeper and controller to produce reliable data and interpret the results, providing insight to help steer your small business toward your stated goals. The result is that you know exactly where, when, and how to focus your team and inform your stakeholders. Understanding your financial statements can also help you understand your break even points, improve your margins, and narrow the gap between receivables and payables.
3. Use the Finance Function as a Competitive advantage
If you are financially frustrated, chances are your competitors are too. A part-time CFO can position the finance function as a competitive advantage which your competition may not be trying to do. An experienced CFO can help you cut waste, deploy cash efficiently, and find opportunities for maximized production or expansion. With the help of part-time CFO you can be in a position to step ahead of similar organizations in your niche.
How Much are Part-Time CFO Services Going to Cost Your Business
Most providers will give you a specific quote tailored to your companies specific needs. The spend can range from $1,200-$2,500 per day. This may sound like a lot, but contrast that with hiring a full-time CFO which would cost at least $225,000 per year (salary + benefits). Outsourcing a part-time CFO can help your company cut costs and use the talent and knowledge exactly when you need it.
As you are searching for the right company to outsource your CFO work with, you may notice that some firms bundle bookkeeper, controller, and CFO services. If the consistency and accuracy of your current reports are lacking, you may want to consider these additional services. The firm would essentially be providing you with an entire finance department at a much lower cost than hiring a full in-house team.
You can expect the following from outsourced bookkeeper/controller services:
• Accurate, timely, and useful financial reporting with helpful visual reports delivered consistently each month.
• Oversight of the day-to-day finance function including process, technology, and internal controls.
• Experts that have eyes and ears on the ground that can spot trends early and often
• Tax preparation and assistance to ensure compliance
• Ensure the integrity of processes, procedures and information systems and help everyone work together in their respective roles efficiently
How much does a bookkeeper/controller/CFO bundle cost?
It may sound like your small business needs to spend a lot of money to acquire an outsourced finance department. However, your small business will easily see 60% savings opposed to hiring an in-house team of bookkeepers, a controller, and a CFO which would cost $350,000 + per year. The spend for a full-service outsourced finance team can range from $1,000 to $12,000
The key to obtaining stronger financials and faster growth is finding the right partner who can help you find the path to stronger financials and faster growth. Finding a partner who has recent experience in your industry or situation can be crucial to your company success. Each industry has its own quirks, and someone with a deep understanding of your niche can save a lot of time, money, and headaches. They also will be able to easily anticipate trends and better develop strategies in response to those trends if they have a complete understanding of the industry your working within.
Limitless Investment and Capital Part-Time CFO Services
Limitless Investment & Capital provides growing and established organizations with experienced CFO-level talent on an outsourced, part-time basis at a fraction of the cost of a full-time employee. Our CPAs and consultants provide specialized skill sets to navigate times of transition when you can’t afford to be without a CFO. We price our service offerings very sharply at rapid mandate turnaround times and place exceptional quality CFOs, Financial Controllers, and Analysts on the project, by leveraging on our varied and wide resource database pool. For more information, get in touch with our experts today!