A CFO – Chief Financial Officer – is responsible for the financial affairs and risks of a business, plus collaborating as a strategic partner with the CEO.
The CFO spearheads financial planning, oversees financial records, manages financial reporting and risks while contributing to corporate strategy. A Virtual CFO performs similar duties, albeit remotely. Unlike the onsite executive, the VCFO does not have a physical office within the walls of the company and may work for more than one business. Typically the work of a VCFO may include:
- Reviewing the company’s cash flow and financials to direct steps toward increasing profitability.
- Collaborating with the entrepreneur and their team using the financials and other metrics to inform corporate strategy.
- Providing financial direction to the accounting team.
- Advocating financially for the company with bankers, investors, significant vendors/customers, etc.
According to the Clutch 2015 Digital Marketing Survey, almost 75 percent of small businesses have an online presence. What’s more, growing numbers of firms are moving their financial data from the file cabinet to the cloud. Emergent Research predicts that by the end of this decade, 78 percent of small businesses will be using cloud data storage. The changing business environment makes it simpler, cheaper and more efficient for enterprises of all sizes to employ remote personnel, including Virtual CFOs.
Benefit 1: Virtual CFOs Are Affordable
VCFOs can range from an individual freelancer to a services group. Because they typically work for more than one company, they do not have to charge any single client for full-time work. Also, a business can opt to insource only the financial services it needs and can afford.
For example, if the entrepreneur only needs help with increasing profit margins they can hire the VCFO for that single service, and not utilize or pay for any of the other services they provide.
Benefit 2: Virtual CFOs Save on Overhead
There’s no need to pay for valuable office space or provide computer equipment or any other infrastructure support. VCFOs own and maintain their own equipment and offices. Plus, as independent contractors, they pay for their own employment taxes, health coverage, and other benefits.
Benefit 3: Expert Advice on Demand
In addition to the services they are already providing a company, a virtual CFO is a great source for unbiased advice on everything to do with business. With an expert already working for you, why not tap them with that burning business issue or business question? In this way, entrepreneurs and their teams can make better decisions and plans.
Benefit 4: Cloud-based Integration
Cloud-based storage keeps data secure but immediately accessible, so a Virtual CFO has a firm’s financial information near at hand. This facilitates efficient, accurate and timely service while eliminating the need for an onsite presence.
Plus, face to face meetings are a snap with video conferencing and simultaneous screen sharing.
Benefit 5: Objective Analysis
As an objective service provider, a VCFO supplies expert assistance that is not influenced by office politics or other biases. Companies can depend upon receiving savvy financial support from a provider who has their best interests at heart.
Benefit 6: Remote, But Fully Engaged
Despite their remote locations, Virtual CFOs take a keen interest in a firm’s financial health. They are familiar with each company’s particular processes, goals and performance metrics. They work one-on-one with entrepreneurs and key executives to help businesses develop and grow.
Benefit 7: Experienced and Versatile
A full time CFO at one company may have limited experience with the way other firms do business. In contrast, Virtual CFOs bring a wealth of knowledge to the job because they have seen what works and what doesn’t in many different companies across a variety of industries.
A benefit of the VCFO’s diverse experience, is they have versatility to adapt and learn quickly with new companies. Thus, they are effective in a variety of different capacities.
How about a Test Drive with a Virtual CFO?
VCFOs can bring value and growth to businesses in this rapidly changing global business environment.
Intigro and George Black have been doing Virtual CFO work since the late 90’s via email and phone calls with an occasional onsite visit.
In February, 2016 Intigro has launched Business Building Sessions with George Black. These sessions are a great way to test drive a Virtual CFO while solving that burning business issue.
Book a Free Intro Session or jump right in with a full session!
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Obviously, there are no guarantees of success; however, if you do the above, your chances for success are improved.
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