What A Virtual CFO Can Do For Your Business
Does This Sound Familiar?
Your business is growing rapidly. You’ve reached $1 million in sales and expect to do far more than that quickly. Other areas of your business have grown as well: headcount, number of customers and the volume of financial transactions. It’s getting harder to keep up with accounting tasks but it has never been more critical to get good financial information quickly.
So far your accounting services have served you well. Your basic accounting software has been a great investment. Now the business has grown more complex and the decisions you make have a much bigger impact. You know you need a more robust system to get you to the next level but you are unsure of where to start. You understand finance but don’t want to get bogged down building an in-house accounting team and system. You want to continue to invest in sales and your product. This decision can’t be put off forever – it’s already impacting you, otherwise you wouldn’t be reading this.
There is an alternative. Instead of building your own financial operation, why not rent one?
A Virtual CFO Can Add Immediate Value
The role of a Chief Financial Officer in any organization is to help grow the business. This is done by allocating resources to where they generate the highest return on investment. CFOs are experts at helping companies quantify the economic impact of customer profitability, product profitability, internal operations so that scarce capital can be put to its best use.
A Virtual CFO, sometimes called an outsourced CFO, has all the skills of a full time CFO with one key difference: he or she is a part-time financial expert that provides you the right amount of guidance at an affordable cost. You are effectively “renting” their expertise. This helps you get the support you need now, while growing the business to where you choose to bring in-house more financial resources. You can continue to deploy your capital to sales activities that grow the top line and have an expert work with you to validate your thinking and help you execute your strategy.
The Virtual CFO should already have expertise in your industry and be able to relate his or her experiences to your situation. In addition to providing strategic guidance, a Virtual CFO should be able to get into the details of the business… prepare financial models, supervise accounting staff and augment your management team. Since a Virtual CFO comes with experience and operates on a contract basis, he or she can be on-boarded quickly and deliver immediate value.
Why Do I Need a Virtual CFO?
You need financial expertise to help structure your company to efficiently and profitably capture the next $10 million in sales. To do that you need highly trained staff and software that goes well beyond the basics. Right now, you may not be ready to afford a full-time CFO and the resources that person would need. Maybe it’s time to consider a Virtual CFO, a part-time financial or outsourced expert who can guide you through your high growth.
A Virtual CFO helps your company grow sales, cash flow and profit. He or she does this by helping you figure out the most efficient path to sustainably scale your business. This is accomplished by first building a sound financial infrastructure to deliver accurate, timely data. That information informs a financial plan that is developed with you to lay out a roadmap of increased sales, profit and cash flow. The plan contains key financial and operational metrics that need to be achieved. The plan is compared to actual performance and the organization is held accountable for delivering results.
Why You Need A Virtual CFO
- What is a Virtual CFO?
- What will a Virtual CFO do for My Company?
- How do I Assess the cost and Value of a Virtual CFO?
- Are there Other Options?
What Does a Virtual CFO Do?
A Virtual CFO typically works remotely and interacts with you and your team as set intervals, such as a monthly meeting to review financials. A Virtual CFO’s work is greatly enhanced when he or she has a robust technological platform to provide accurate, timely data.
The Virtual CFO will supervise a staff to perform various financial and accounting tasks. To be most effective, a Virtual CFO will supervise a team including a Virtual Controller providing Virtual Bookkeeping services. This integrated approach enables a company like yours to have a robust, turnkey financial operation available to assist you during your rapid growth phase. This team takes care of the financial operation so you can focus on growing your company without turning to offshore outsourcing.
Not all Virtual CFOs come with a staff. In some cases you may just want to have someone by your side to help you think through various strategies. You may already have financial staff in place to handle bookkeeping but they need more guidance. A Virtual CFO can be retained to manage this staff to make them more efficient and effective.
Virtual CFO Services We Provide
When you hire a Fintelligent Virtual CFO, you get a solution that also includes our Virtual Controller and Virtual Bookkeeping services. The Virtual CFO supervises the solution. He or she also extends it by:
- Providing strategic guidance
- Performing advanced financial planning & analysis
- Interfacing with investors, lenders and board members
- Validating the business model
- Integrating with other members of your operating team.
Fintelligent offers its services on a monthly subscription basis that includes our technology and services.
Benefits of a Virtual or Part-Time CFO
- Access to a seasoned financial professional who understands your business
- Scales with your business
- Helps you hold your company accountable for high performance
- Frees up your time to so you can focus on growth
- Less costly than a full-time resource
- Can transition to a full-time CFO when the time is right
We Need Help But Don’t Think We’re Ready for a Virtual or Outsourced CFO
Hiring a Virtual CFO is an investment in your business. Good Virtual CFOs are in high demand because of their proven ability to grow a company’s sales, profits and cash flow. This investment can be daunting, however, there are ways to improve your company’s financial operation without hiring a Virtual CFO. If you think a Virtual CFO is too much for you right now, consider engaging a Virtual Controller or Virtual Bookkeeping services.
A Virtual Controller will use our Virtual Bookkeeping platform to keep your books in order, develop the annual financial plan and track performance against it. The Virtual Bookkeeper performs all the financial transaction processing, performs the monthly close and generates monthly financial statements.