Finance & Accounting

A virtual chief financial officer is a financial expert who provides the same financial services that a full-time CFO offers in person. However, there are a few critical differences in these roles. A virtual CFO works on a part-time contractual basis. This contract employment allows the virtual CFO to focus solely on the specific financial areas where a company most needs assistance. Furthermore, virtual CFOs cost your company less money in the long run. This cost reduction is because you only need to pay for the services that your company will benefit from the most. In most cases, virtual CFOs have the same finance degrees, qualifications, and experience that in-person CFOs do.

Services A Virtual CFO Provides

Virtual chief financial officers are in charge of financial planning. Additionally, they maintain economic activities and records to mitigate the monetary risk of a company. Bookkeeping, accounting, and interpreting financial data such as capital investment are vital responsibilities the virtual CFO will likely tackle. Many virtual CFOs also offer a one-time consultation to address business plans and budgeting to set a business on track with its financial goals.

Why Your Business Needs One

Small to medium-sized businesses exponentially benefit from the services of a virtual chief financial officer. These businesses may not yet need full-time CFO services. Moreover, it might not be in the budget to hire a full-time CFO. However, the company still needs an expert financial advisor on its team. A virtual CFO will bridge this gap and provide only the most essential and critical financial services that the company currently requires.

Schleidt Works provides financial consulting services to clients across a variety of industries. Our services help clients minimize risk and improve returns. In addition to small to mid-sized for-profit companies, our clients include municipalities, utility companies, and non-profit organizations.

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The global market for legal marijuana is growing rapidly. Many companies are now getting into the industry. A Cannabis Company CFO with expertise specifically tailored to this industry will keep your cannabis business financially on track and profiting. Here are a few important reasons to consider hiring a CFO for your cannabis company today: 

Cannabis and CBD/hemp accounting is specialized

Accounting for cannabis companies is complex. This accounting requires specialized expertise in the industry, specifically regarding the 280e and COGS deductions. An accountant or virtual CFO inexperienced in the industry won’t have the niche accounting tools necessary to serve the industry. This inexperience quickly leads a company into trouble with the IRS.

You could be missing out on profits

Cannabis companies face higher federal tax rates. Therefore, it’s important to make sure you are paying the correct amount. Overpaying means missing out on profit. Conversely, not paying enough means your company is at risk of being penalized. A virtual CFO is responsible for managing all financial aspects of the business. Therefore, they can help your business find the right financial strategies to make sure your profit is not lost during tax season.

Better processing of financial information

A CFO is a person on your team that handles all financial reporting. They are the person keeping a close record of your company’s profit and losses. Additionally, they review all numbers for accuracy. It’s necessary to have this expert on your team because they will keep your business on track. 

Knowing the loopholes can save you money

Cannabis borrowers pay a premium. Due to this, rates on real estate are up to twice the standard rate. Cannabis is not federally legalized. Therefore, cannabis business loans are frequently hard to get and costly. However, a CFO with knowledge of the cannabis industry can help you navigate this process. They are able to direct you to find the best rates and terms.

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Essential Services

A virtual chief financial officer (CFO) works as a financial expert. Instead of providing these services in person on a full-time basis, a virtual chief financial officer works remotely by contract. This service is beneficial for your small or medium-sized business because you’re still able to have the essential services a CFO provides for a reduced cost. A few of these services include financial planning, financial risk management, funding administration, payroll management, and debt reduction.

Cost Savings

Your company will benefit tremendously from hiring a virtual chief financial officer. One such benefit is the cost savings of hiring a contracted virtual CFO. A full-time, in-person CFO can cost upwards of $300,000 yearly. However, hiring a virtual CFO reduces this cost significantly. This cost reduction is because you only need to pay for the services that your company will benefit from the most. 

Contract Worker

A virtual chief financial officer is a contract worker. Therefore you do not have to budget for their benefits, bonuses, or paid-time-off. A virtual CFO can bridge the gap between the time a small or medium-sized business is first starting, to when they are in a position to hire a full-time CFO. 

Specialization

A virtual Chief Financial Officer specializes in one particular industry. However, they usually have multiple clients across this industry. Their experience ensures that they have a thorough understanding of your business with the expertise to foster your businesses’ industry’s financial growth and success. When a bookkeeper alone is not enough to effectively manage your finances, a virtual CFO becomes crucial.

Cash Flow Assurance

Whether your business is experiencing a period of growth or struggling through a time of financial setbacks, a virtual chief financial officer is a great asset. Many companies come to find there is a time of rapid growth. While this increase in profits is a victory, a virtual chief financial officer can handle potential risks and ensure the stream of cash flow stays steady. Conversely, a virtual CFO has the tools necessary to understand and diagnose a problem during setback times. While every business has unfavorable financial periods, the help of a virtual CFO can quickly resolve yours. 

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