A virtual CFO is a person who performs the services of a CFO, or chief financial officer; however, instead of providing those services in person, as a full-time employee, the virtual CFO does so remotely, typically on a less-than-full-time schedule.
It is a relatively new and growing concept, especially for small businesses who need CFO support but can’t afford to employ a full time one. At the same time, these businesses can’t forgo a CFO’s advice as it would be detrimental to their business.
Sound financial management is essential to taking a business to the next level. Virtual CFOs thus provides a practical and reliable solution to entrepreneurs, startups and small businesses to avail financial and accounting assistance.
The changing face of accounting has also further helped businesses to opt for a virtual CFO support simply through technology. Accounting services can be availed from any location, negating the requirement of face to face interactions. For instance, it is now possible to see a client’s cash flow in real-time using cloud accounting software. Cloud technology has been instrumental in making virtual CFO a possibility for small and medium businesses.
Benefits of onboarding a Virtual CFO -:
- Cost Effectiveness - Huge savings on cost as the virtual CFP’s don’t have to maintain the full-fledged finance and accounting departments of the organisation.
- SMB Boon - Small businesses get to avail all the services traditionally offered by a CFO, without their presence onsite or full time. They regularly monitor the financial health and wellbeing without direct involvement in the operations
- Credibility & Rich Network - Most CFOs have been in the industry long enough to have a robust network of key individuals and organizations. This wide range of the network is easier to tap into.
- Stability for the company - A virtual CFO also ensures continuity and stability of operations. With a virtual CFO, they can be guaranteed that their accounting and financial compliances are not affected due to sudden employee changes.
A virtual CFO is trained to assess situations and can enter organisations mid-process and achieve organizational goals faster.
Businesses can also avail flexible engagement models to keep the CFO costs variable, as per the needs & requirements. They can opt for part-time CFOs and/or such retainership agreements as is feasible to them. Depending on the requirements, consulting firms can provide tailored services to suit the business needs of startups and other organisations.
Can a virtual CFO help you overcome your business challenges and partner with you to help you achieve your organization’s potential? Contact IBS today to speak with one of our experienced team members.