A company’s Chief Financial Officer (CFO) handles everything related to the business’s finances such as 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 to medium-sized businesses to afford a full-time in-house CFO and hiring a virtual CFO is a great choice. These businesses can understand greatly for virtual cfo to manage their company’s finances if you run a small to medium-sized business.
Here are the reasons why you should hire a virtual CFO
1. Save Money
As was previously hinted at, hiring a virtual CFO, rather than an in-house CFO, to handle your company’s finances can save you a great deal of money. The primary reason that hiring a virtual CFO is a more cost-effective option is that you will not have to bring someone on full-time. Virtual CFOs are generally contracted workers whose services you use on an “as needed” basis.
This means that a virtual CFO can end up saving you as much as 50% when compared to the cost of bringing on a full-time CFO. Additionally, an experienced CFO will be able to analyse your company’s finances and help make your business more profitable.
2. Access to a More Experienced CFO
Not only can hiring a virtual CFO save you money over hiring a full-time CFO, but enlisting the help of a virtual CFO will give you access to a CFO with more skill and experience than you could have otherwise afforded. By contracting a virtual CFO you will have access to a skilled financial analyst with years of experience, training, and know-how. This experience is gained by from working with a variety of companies and industries.
3. Superior Cash Flow Management
A virtual CFO can also help to analyse and manage your business’s cash flow in order to ensure maximum efficiency and liquidity for your business. Without a financial professional at your side, it can be easy for businesses to make mistakes than can be costly down the road. An experienced CFO will help you to ensure the continued success and growth of your business, and will help to ensure that you keep on top of your business’s finances so that there are no surprises at the end of the year. Most importantly, having a professional financial analyst and cash flow manager on board will give you a peace-of-mind knowing that your finances are being expertly handled.
4. Provides an Independent Perspective
Another benefit of hiring a virtual CFO is that they bring in a fresh, outside perspective to your business. A CFO who does not work solely for your company may see something you missed. They are further removed from the situation and are able to look at your business with fresh eyes. Additionally, as a virtual CFO often works with multiple businesses at the same time, they are exposed to a variety of fresh ideas and new ways of approaching things. They can then bring these fresh perspectives to your business.
For the small to medium-sized business, there are many advantages of consulting a virtual CFO. Doing so will give you access to the services of a seasoned financial analyst at a fraction of the cost. This will help to ensure the future success of your business without going overboard on overhead expenses. Contact us about the unique benefits a virtual CFO could bring to your company.
About David Officen
David is the Founder and Managing Director of proCFO. David combines an accounting and consulting background with commercial experience both as a manager for large commercial businesses and as the owner of private and family businesses.