Now more than ever, startups and corporates are looking for ways to run lean. There is pressure to make cuts to staff and outsource when possible, and this has led to a trend of hiring virtual CFO services over the more traditional in-house full-time CFO.
The role of a Virtual CFO is to be a forward-thinking strategist whose primary purpose is to provide strategic insight to help you move the needle forward in business. A virtual CFO is best suited for growth-minded business owners who are ready to scale their business faster and smarter. He or she will help to provide financial intelligence that will increase cash flow, boost profit margins and streamline business growth.
No business is too big or too small to benefit from Virtual CFO services. Whether you desire to outsource your entire accounting department or simply desire a financial accountability partner that will help you make strategic business decisions, Virtual CFO services can help turn your business dreams into a profitable reality.
What is a Virtual CFO?
Just as the title suggests, a virtual CFO is a person who performs the services of a CFO, or chief financial officer; however, instead of providing those services in person, as a full-time employee, the virtual CFO does so remotely, typically on a less-than-full-time schedule.
The number of startups has ballooned in the past decade, with technology paving the way for more entrepreneurial activity than ever before. In the tech sector alone, the number of US startups grew 47 percent in the last ten years.
Types of Virtual CFO Services
Most Virtual Chief Financial Officers offer the following:
1.Management reporting and dashboard reporting
Management reporting gives businesses a financial view of how they are performing. They put systems and tools in place, including dashboard reporting – a visual representation of business key performance indicators (KPIs) – to measure and generate this information, which is regularly reviewed with the owner.
2. Cash flow modeling, reporting, and management
Cash flow is critical to business success. A Virtual CFO will implement, update and monitor cash flow forecasting and modeling, and work hand-in-hand with business owners to create strategies to manage cash flow and assist in business growth.
3. Budget and forecasting preparation, analysis and tracking
A Virtual Chief Financial Officer will review and analyze a businesses’ prior financial results together with their strategic plans. They work with business owners to ensure their budgets drive towards the businesses’ future directions and goals.
4. Finance process reviews
Review current finance processes and policies and implement improvements to allow businesses to operate more efficiently and effectively.
5. Cloud accounting advice
They will find the most suitable provider and solution to fit a business’s needs and help with integration and implementation.
6. More specialty services
There are numerous other specialty services such as ad debt reduction and financial risk management that virtual CFO services can offer. A virtual CFO’s scope of work for a company typically depends on the company’s size and unique financial needs. He or she is usually paid by the hour or via a flat monthly rate.
Benefits of Hiring a Virtual CFO for Your Business
Below we mention several benefits to working with a virtual CFO.
- Provide financial intelligence at your fingertips – while you focus on growing your business, a Virtual CFO will help you understand key performance numbers, pricing, setting and achieving realistic revenue and profit goals, ratios and much more. They will help you “see through your numbers” to repair, build and grow a truly profitable, successful business.
- Reduce tax liabilities – A Virtual CFO will focus on strategic, high-level financial services at half the cost. They will uncover money leaks, tax deductions and business restructuring that will help you reduce your overall tax liabilities and financial worries.
- Better operational control – Often, a small business is not familiar with the small details needed to achieve large results. A Virtual CFO will provide you with the peace of mind in knowing that all areas of your business are operating inflow, therefore moving the business towards its high achieving goals. This will enable you to reduce risk, save time and eliminate stress.
- Increase Cash Flow & Profit Margins – Do you often feel as if you are on a cash flow roller coaster? A virtual CFO will streamline your back-office operations while helping you gain financial control and clarity. Once you have a clear understanding of the health of your company, you will be well equipped to earn more money, keep more money and accelerate business growth.
Final Thoughts
A Virtual CFO will become an asset to your organization. For half the cost of a full-time CFO, a Virtual CFO will provide you with the tools, strategies, systems, support, and solutions to build the profitable, successful business of your dreams.
Limitless Investment and Capital Virtual CFO services
Sometimes your business just isn’t big enough to need a full-time CFO. but you still need an experienced leadership team member to help manage financial, accounting, human resources, and operational aspects. With Limitless Investment and Capital as your trusted finance and operations partner, you’ll know you’re making the right decisions to grow your business. We are available on a part-time or as-needed basis. Contact us TODAY to get started!