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.
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.
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.
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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