How can virtual CFO services be a solution for your company or startup?

1. Save time and money

   : The advantages of hiring a virtual CFO always begin with cost. On one hand, the cost of finding and recruiting a full-time, in-house CFO can be daunting, especially for a startup or small- or medium-sized business owner. On the other hand, a virtual CFO can be hired as per requirement. With a virtual CFO, entrepreneurs can leverage the knowledge, skill and experience of a full-time CFO with the reduced cost of having a full-time CFO on staff. As the virtual CFO helps their business grow, they can then scale up their involvement with their business as needed. A virtual CFO also allows business owners to save time by providing the financial oversight of processes they were handling internally, including processing paying bills, payroll, budgeting and handling financial paperwork, among other tasks. 

2. Offer seasoned, strategic insights

   : Balanced, long-term growth necessitates a sound business model that takes into consideration factors such as industry outlook; internal and external resources; customer demographics and behavior; a detailed financial plan; as well as competitive positioning. It’s not enough to look at previous year’s data and come up with a plan for the current year — the current speed of business demands that essential metrics are assessed continually and acted upon promptly. Tyler Sloat, CFO at Zuora, says the CFO must have a clear understanding of what influences change, what the key business drivers are and the business metrics. The evolution of the traditional financial planning and analysis (FP&A) group within the CFO’s function into more of a financial data and analysis (FD&A) group further enables the CFO to help steer other functions based on financial benchmarks deeper within each function. The availability of data and the capability to analyze that data with accuracy and speed allows for much more granular action items. The CFO must be able to understand those takeaways and then train the executive staff to help them make the right decisions to move your business forward. A virtual CFO can put in place various accounting and reporting systems to ensure business units have full visibility into the core metrics required to make those decisions quickly and efficiently. Some such systems are:

• 360-degree view of accounting data

  : This lets the CFO view real-time procurement, invoicing and cash flow simultaneously.

• Improve controls

  : Processes that include financial oversight and audit tracking to reduce financial errors and ensure the accuracy of all accounting data.

• Financial planning

  : Data from different operational components of the organization provide business cases for Cash management, borrowing, equity raises, restructuring and so on.

• Real-time compliance

  : Enterprise resource planning (ERP) reporting provides an investigative platform that helps ensure tax compliance and remediate issues.

3. Financial management and forecasting

   : A virtual CFO can oversee the accounting and financial functions for a business by providing regular financial reporting and guidance, developing internal accounting controls and ensuring there are proper checks and balances in all accounting issues. Firms with dynamic business models benefit the most from financial forecasting and projections. A CFO can develop rolling forecast tables and financial statements that project up to 12 months out so that resources can be allocated to meet future goals.

4. Cash flow management

   : A virtual CFO can help prepare cash flow statements that include stockholder equity, long-term assets, net income and liabilities, among others. And through regular assessment of cash flow statements, they also help develop cash improvement programs.A virtual CFO can also attend business meetings with investors and lenders to raise capital for growth.

5. Scale the business

   : When a startup owner is looking to scale, a virtual CFO can put them in the right direction and come up with a healthy action plan. They can support the expansion plans by performing financial forecasts and financial risk assessments, ensuring that the financial infrastructure is up to the mark, helping obtain financing and applying for loans, determining the most cost-efficient tax structure and applying for multi-state registrations, if applicable. 

6. Tackle financial challenges

   : Å virtual CFO can help set things straight when a company is struggling financially. They can help remedy the following challenges: high business overhead; inability to raise capital; poor cash flow and profitability; high client churn; and debt management and loan repayment; among other challenges.

Takeaway

Authors

Neha De

Neha De is a writer and editor with more than 13 years of experience. She has worked on a variety of genres and platforms, including books, magazine articles, blog posts and website copy. She is passionate about producing clear and concise content that is engaging and informative. In her spare time, Neha enjoys dancing, running and spending time with her family.