CFO Services
An Virtual / Outsourced CFO is a financial expert who works part-time on projects to provide financial strategy services. Virtual / Outsourced CFO services include high-level financial strategy, system analysis, and design, and operational optimization. An outsourced CFO can also help a firm with cash flow difficulties, obtain money, resolve tight margins, establish more efficient systems, and plan for development.
Virtual / Outsourced CFOs have extensive experience in senior corporate finance roles. They would have served frequently as CFOs for a wide range of public and private companies at various stages of development and across multiple industries.
What is the need for a Virtual CFO service?
If a company does not have an in-house finance department, it can outsource the finance function to another company. In addition, the company can use virtual CFO services. Remote or through an external consultant, virtual CFO services can be provided. Businesses must fluctuate according to the changing conditions in the world of digitisation. Some companies, such as start-ups and small and medium-sized enterprises (SMEs), may lack the resources to hire an in-house Chief Financial Officer (CFO). As a result, these companies use virtual CFO services.
The role of a CFO has become more difficult as a result of digitization. In this competitive environment, a CFO should be able to perform financial, management, and business functions.
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Functions OF Virtual CFO
Debt Management
A virtual CFO creates a real obligation arrangement with the intent of achieving the best result. To control the commitment, proper obligation planning is required.
Forecasting Income
The virtual CFO can also forecast earnings, which is a valuable service. To make the right decision, organizations must better understand their financial situations.
Policies and procedures for accounting
A well-organized and well-maintained set of bookkeeping approaches aids in the overhaul of obligation and consistency in the association. Bookkeeping strategies and techniques aid in the organization and application of highly specialized bookkeeping and the executives in the organization.
Internal Regulations
A genuine bearing on the advancement of the associations by strategy for smoothed out inside control structure helps in keeping the affiliation's immovable nature. To be feasible, an appropriate and exact accounting record, all-around instructed cash-related decisions, and financial itemization are required as a component of the internal control structure. The association's CFO assists in assessing and executing these recently referenced structures.
Audit Assistance
The virtual CFO provides an all-around review by answering inspectors' questions.
Management Information System Reporting
In MIS reports, the virtual CFO is responsible for providing convenient and accurate information about the organization's fiscal soundness
Financial Evaluation
Another critical service provided by the virtual CFO is income forecasting. To make the best decision, organizations must better understand their financial positions.
Governance in Business
Corporate administration encompasses all of the standards and guidelines that a business adheres to. These standards aid in finding a balance between the passions of partners, investors, executives, and customers.
Calculating the Break-Even Point
Analysis, the ultimate cost (fixed + variable) differs from the pay that will select a point where the business does not gain or lose money. The Virtual CFO will assist in inducing equal initial investment examination, allowing the organization to control its expenses.
Virtual CFO Service For Startups
The concept of a virtual CFO is a unique and innovative concept. It’s a way for small businesses or startups to get CFO support that they couldn’t previously afford. When a small business hires a Virtual CFO, it gains access to an experienced financial professional at a fraction of the cost of a full-time CFO.
To manage their expansion, businesses will first hire bookkeepers and accountants. However, business needs more excellent financial strategizing and management at some point, which is where a chief financial officer comes in. Full-time CFOs, on the other hand, can be expensive, which has given rise to the virtual CFO (VCFO).
Services Offered By Virtual CFO
F.A.Qs
on Virtual CFO Services
A CFO helps your business with “future focus”, working with you as a strategic partner. In addition to addressing short-term needs and week-to-week analysis, a CFO provides long-range planning to keep your company both healthy and growing.
A CFO is strategic, using current & historical data to chart out a course for the future. In contrast, a Controller is typically historical focused, and more concerned with day-to-day accounting & reporting, but generally doesn’t bring new ideas to drive overall success of the business.
One of the tell-tale signs is having difficulty making good decisions due to:
- Lack of accurate, timely, useful data
- Weak financial processes/disciplines
- Inaccurate/inadequate analysis of current activity
- No “Future Focus” – planning & projecting the future & eliminating surprises
- Lacking a competent, objective “sounding board” for Strategic Planning
Common signs a business may need a CFO:
- Cash planning & cash management problems
- Indecision/Uncertainty
- Underperforming Businesses
- Erratic Financial Results
- Business has grown beyond your financial staff’s expertise
At first, many CEOs have trouble visualizing how a Virtual CFO can help their organization. During our assessment review, we’ll show you specific examples of how your CFO can improve your company’s decision data and performance.
We will organize a combination of recurring phone calls and video meetings to interact with your team. Typically we will have a recurring call/meeting with your internal accounting lead weekly, a monthly financial review with the leadership team, and other check-in meetings with the owner/CEO for status updates and new initiatives.
In a large business, the responsibilities are much clearer; in a small company, roles tend to be blurred, and frequently the titles do not match the work that the individual is actually doing (e.g., calling a Bookkeeper a Controller).
Regardless of the titles, someone qualified should be doing the following in every business:
- Financial reporting and analysis that is both accurate & useful for decision making (e.g., profitability by product/customer/location, market segment, etc.)
- Focusing the business on key metrics that have the greatest impact on profitability & cash flow
- Managing cash flow & cash planning
- Balancing health & growth in the organization instilling basic financial disciplines and controls
- Creating projections to identify future problems and opportunities
- Providing leadership and training to the company’s accounting staff
- Questioning and challenging the status quo (e.g., not being satisfied with “that’s the way we’ve always done it”)
- Assisting the owner with difficult decisions
If some or all of the above items are not getting attention in your business, a part-time CFO can be a cost-effective solution. You may also be interested in our Whitepaper The #1 Financial Mistake Made by Small-Business Owners.
Yes. We’re also happy to sign an NDA (Non-Disclosure Agreement), if you prefer.