Virtual CFO’s are fast becoming increasingly popular in today’s business environment. Below are 7 reasons why virtual CFO’s are “the new black” and the benefits which can be achieved by engaging these professionals.
1. Cost Savings
One of the major reasons why SME’s engage a virtual CFO is to achieve cost savings. Since these professionals are not working with you on-site every day, your business can significantly save on personnel and technological costs. In some cases, the cost of a Virtual CFO can be as cheap as 50-70 per cent the cost of a full-time CFO.
In addition, by engaging a virtual CFO, you will be able to save a significant amount of time since they can start work immediately whenever the need allows. As they say, time is money, so saving on a very important resource such as time is synonymous to saving money.
Engaging a virtual CFO gives you access to high-calibre talent right when you need it – during financial year end, a major project, capital raising or business and strategic planning.
The flexibility of this set-up provides you with access to bespoke services your company needs. This affords your business the luxury of being able to increase or decrease the services you require from your virtual CFO in accordance with your business needs.
3. Better Results
A virtual CFO will take pride in their experience and work in handling your businesses finance and accounting functions. Through the services of these professionals, you can easily anticipate better outcomes from your critical business numbers.
Virtual CFO’s are usually seasoned professionals who have had the opportunities to work with many companies. Chances are they are already familiar with the common financial problems you are most likely to encounter and can easily provide solutions derived from what they have learned from experience.
The working arrangement with a virtual CFO varies and depends entirely on the requirements of your business and the engagement.
By engaging a virtual CFO, you can easily choose which tasks you want them to focus on. You can focus on the biggest issues for your business in a systemised and structured manner.
5. Cash is King
Reviewing profits, understanding your revenues and expenses and preparing a cash flow could be a challenge for first-time entrepreneurs who have just dipped a toe into running their own business. By hiring a virtual CFO, you can rest easy, knowing that your financial resources are being put to good use and creating what is crucial in any business - strong cash flow.
Businesses have to deal with decision-making processes. But obviously, when a business owner's tasks are too full and their mind is always occupied, the tendency for miscalculations is very real. This is where hiring a virtual CFO comes in handy. A virtual CFO can assist in making strategic and profitable business financial decisions, meaning business owners will have fewer problems to worry about.
6. Experience and Prospective
Virtual CFO's have worked with many businesses and therefore have diverse experience and can bring fresh perspectives to your organisation. Regular finance employees often operate within one entity and department, adhere to the same rules and regulations and adapt the same work mentality. However, a virtual CFO has had the luxury to work with various clients. This gives them access to diverse company views and ideas. That means they can easily introduce a new perspective to solving issues — an attribute which your company can greatly benefit from.
Let's face it, sometimes in business, owners and management are faced with difficult issues and conditions from time to time. And sometimes, it is difficult to receive honest and objective advice from those within the business, employees who often haven't been exposed to different industries and businesses or fear speaking up due to job security.
By engaging a virtual CFO however, they are experienced and independent professionals who are able to tell it how they see it, even if the advice is difficult to swallow - especially in tough economic times.
CFO Access is a boutique and bespoke advisory firm specialising in providing Virtual CFO services to SME's. We are able to provide experienced CFO's and Finance Directors on part time or project basis.
We know how SME's operate and what they need. We act as real business partners, we listen, understand the business, understand the issues and determine the way forward with you with practical, objective advice.
We engage with our clients as a strategic partner, ensuring quality CFO services either on an on-going basis or at a frequency desired by them, or even a one off specific project or assignment. Thus, depending on the need, we let the client design a flexible engagement model.
We use our experience to craft yours.
If you would like to engage CFO Access to be your virtual CFO or for a specific project, please contact us on +61 249 262 618.