What Is A Virtual CFO?
Advancements in modern technology has offered a rise of the virtual workforce.A Virtual CFO is essentially an outsourced financial advisor that is a trusted source for financial perspective. Virtual CFOs work within your management team and are able to provide highly qualified financial advice specific to your business and industry. It’s a way that small businesses can get CFO support that they would not have previously been able to fund. Small businesses that hire a Virtual CFO can gain access to an experienced financial professional at a cut cost of what it would be to hire a full time CFO. The duties will differ between different firms, although usually the Virtual CFO will:
– Monitor the financial well-being of the business.
– Handle all the duties of a traditional CFO but only work on a part-time basis.
– Offers financial judgment and direction on all company decisions and issues.
– Provide administration functions such as managing financial accounts, all depending on the clients and their needs.
Advantages For Small Businesses
Using the services of a Virtual CFO can be a exceptionally beneficial for a small business. Due to lack of funds most of them cannot afford an experienced, knowledgeable CFO on a full time contract and usually will never consider to hire one. It is not uncommon for many small businesses to fail within their first few years. These reasons usually include an inability to find a profitable business model and failing to set themselves apart from their competitors. With a bookkeeping expert acting as their Virtual CFO they will then be able to keep their financial achievements and realities in clear sight. The main services it can contributes to small businesses are:
– Creating budgets and forecasts.
– Justifying or disapprove business decisions with a financial prosperity in mind.
– Recognizing problem spending by drawing attention to trends in the market.
There is no argument that Virtual CFOs provide a valuable tool for small business owners. Finance should never be neglected, especially when it comes to small businesses. By having well thought out accounting and finance functions you can make a significant contribution to your company’s overall success.
Author Bio
David Boyar is passionate about finance, which he demonstrates in his position at Sequel VCFO. His desire to help small to medium businesses reach their financial potential is commendable. David hopes to help those looking to start a new business with his financial wisdom.
