It’s happening. Virtual CFO service is rapidly becoming the future of financial advice for small and medium-sized businesses.
Never heard of a Virtual CFO? We’re not surprised.
Based on recent keyword research, the keywords ‘Virtual CFO’ produced a monthly search volume of between 200 – 500 searches, Australia wide. This is quite low and probably why you’re not familiar with the term. However, there are over 150,000 references to ‘Virtual CFO’ on websites around Australia so the term will soon become as common as accountant or bookkeeper.
So, before we delve into some of the reasons why the Virtual CFO is the future of small business financial advice, let’s explain what a Virtual CFO is.
What is a Virtual CFO?
As you likely know, a Chief Financial Officer (CFO) handles everything related to a company’s finances. Everything such as reporting and analysing your financial results, cost control, overseeing cost-benefit analysis and securing new funding.
While a CFO serves a vital role in a company by providing financial management, it can be difficult for small businesses to afford a full-time, in-house CFO. Or see the value in doing so.
This is where the virtual part comes in. A Virtual CFO is, in other words, an ‘on-call Chief Financial Officer’.
A Virtual CFO provides an outsourced service, which enables you to gain solid and ongoing financial support. Without the commitment and cost of a full-time Chief Financial Officer.
Why is a Virtual CFO the future?
As you are no doubt keenly aware, your finances and strategy surrounding them is the foundation of your business.
To survive difficult times and maintain your business’ profitability, it is wise to consider new and innovative ways to optimise your finances and accounting practices.
The services of a Virtual CFO allow you to forecast your business’ future in ways you never thought possible.
Why? Because a growing business cannot possibly receive all the financial support and assistance it needs solely from a bookkeeper. And external accountant is only interested in doing the end of year tax lodgements.
Not only that, business owners shouldn’t be under pressure to make all their financial decisions alone, they have enough to worry about already!
Therefore, the services of a Virtual CFO are becoming widely popular.
Advances in Technology
Advances in technology allow you to receive expert advice and support over all your finances. Without the cost of employing a full-time staff member in your office.
The outsourcing concept is not new or unheard of. However, the number of advances in technology, cloud technology in particular, and the development of leading accounting software, such as Xero have advanced and improved our ability to outsource financial services.
With other technologies, such as webcams and programs such as Skype, your Virtual CFO doesn’t even have to be in the same city as you – we’ve come a long way.
Prefer to meet your Virtual CFO in person?
You can still meet your Virtual CFO in person too.
We acknowledge that when it comes to someone assisting you with your finances, a great deal of trust is involved. And so a physical presence, especially in the early stages, can play an important role in establishing that bond of trust.
Following the initial stages and the physical presence, the technological tools are set up to bridge the gap and get the virtual part underway. Tools such as cloud computing platforms for the accounting, video conferencing with screen sharing, on the phone, or via email.
Can you now see why Virtual CFOs are rapidly becoming the future of financial services?
At proCFO in Perth, we use all this technology and more, to provide you with accurate, understandable, and up-to-date financial data, giving you the confidence to make the right decisions for your business, virtually!
Want to find out more about the benefits of having a Virtual CFO supporting your business?
Read one of our latest blogs ‘Why you should hire a Virtual CFO before it’s too late’, or get in touch today!