If your company needs the assistance of a CFO but an in-house, full-time financial officer isn’t realistic, you have some options. One of those options is to consider a virtual CFO, which allows you to take advantage of technology and find a cost-effective method of getting the financial expertise you need.
Virtual CFO services are one of those advances made possible by the increased reach of technology and our ability to transmit even sensitive information securely. It is a great way for companies to get expert financial planning, either from a distance or when a face to face meeting is not practical.
What a Virtual CFO Does
Like any other CFO, a virtual financial officer helps get your company’s finances in order. This means creating budgets, developing financial forecasts, and helping you create strategies that will drive your business in the right direction. The term can be used to describe any financial officer who is hired on an outsourced basis and does not work in your office, and it can refer to a single person or to an entity.
Since the clients of a virtual CFO are most often companies without the resources to bring in a full-time financial person, they tend to be very focused on the needs of these companies. They can help with important tasks like securing additional capital or debt and controlling expenditures to increase profit.
A virtual CFO can also help you make sense of past financial records and may use them to plan for the future as your company grows.
How To Find and Work With a Virtual CFO
Just like hiring an in-house executive, you need to consider candidates carefully and look for experience and reputation.
With the right candidate, the sharing of information in a secure fashion should become easy and automated. In much the same way that a business can come to depend on a good accountant to handle tax and other information securely and discreetly, a virtual CFO will become a trusted member of the team.
If you are already working with an accountant, it is a good idea to discuss your plans to bring in a CFO on the team. You will likely get some advice on the reputations of those offering virtual services, what to look for, or even find someone with whom the accountant already works.
Benefits of Going Virtual
The biggest benefit to a small business of using a virtual service is of course the cost. The fees charged by virtual CFOs are a fraction of what you would need to hire a full-time financial executive who will expect not only a salary, but also a stake in the company, benefits, and more.
However, there are other benefits as well. A virtual CFO often works for you on an as-needed basis, so you have someone when you need help. When you are burning the midnight oil trying to get work done, you can pass off information digitally to a virtual CFO when you are ready.
The cloud technology available today also allows both you and your CFO to access and view information at any time, anywhere. That means that if there is a lot of travel in your line of work, you can bring your CFO along without paying for another ticket.
A virtual CFO also allows you to give access to anyone else who needs the information when and how you need it. That means you can bring other executives on board or share financial information to the person handling your taxes – although many virtual CFO services also make taxes a part of the package.
Every company can benefit from having a CFO, but not every company can afford to hire someone full time – nor do they necessarily want to. Outsourcing the job of your financial planning has quickly become a popular and very successful choice for businesses.
Thanks to the availability of part-time, virtual services, you can get the help you need when you need it at an affordable rate. Technology has opened doors that allow even the smallest companies to access expert financial strategists and create a solid foundation to improve the chances of success. Contact Your CFO Solutions for more Information.