The finance and accounting business is going through significant changes. Frequent and routine services like bookkeeping and accounting are flooding the industry. Businesspersons have so many options in providers of ordinary accounting services that the process for them is steadily decreasing. There’s a little or no differentiation in this crowded market that the value of these services is being driven down. An essential part of achieving this is a useful CFO function. The role of the CFO has evolved from being a backwards-looking financial policeman to a forward-thinking strategist whose primary undertaking is to provide advice on a wide range of issues.
All about Virtual CFO Services
Virtual CFO services are becoming more in-demand from scaling small businesses. Whether they seek expertise and are struggling to hire an internal CFO that can help them fulfil their business goals, working with a virtual CFO is a great option that can help them acquire the strategic business advice they need.
The part of a Virtual CFO is to be a forward-thinking policymaker whose main purpose is to provide strategic vision to help you move the needle forward in the business. A virtual CFO is best suitable for growth-minded investors who are ready to scale their business quicker and smarter. A Virtual CFO helps to provide financial intelligence that will increase cash flow, boost profit margins, and streamline business growth.
A virtual CFO makes it possible for a small and mid-size company to receive CFO-level support without the cost of internally hiring one. Virtual CFOs typically work on part-time basis, which is why it is more reasonable. Yet, still, they provide similar financial know-how and competence of a full-time professional.
The precise duties of a virtual CFO are unique to the business providing them but can include –
- Managing all financial activities of the company
- Providing commercial insights on business decisions
- Generating company-specific reports
- Monitoring the economic health and growth of the business
5 Reasons why Virtual CFO is Important for your Business
There are many reasons why many companies choose a virtual CFO over a full-time CFO. They are –
- Virtual CFO’s are flexible – Flexibility is one of the advantages of employing a virtual CFO. Most virtual CFO workers today allow you to stipulate the number of hours depending on your necessities, which means you will only pay for what you need.
- Adapt to changing needs – As businesses develop and expand, their needs also grow. A virtual CFOs flexibility lets them adapt to the changing needs of your company, and the financial aid they offer can be tweaked depending on your current requirements.
- Reduce tax liabilities – A virtual CFO will focus on strategic, high-level financial service at half the cost. They will uncover money leaks, tax deductions, and business restructuring that will help your overall tax liabilities and financial worries.
- Increase cash flow and profit margins – A virtual CFO will streamline your back-office operations while helping you gain financial control and clarity. Once you get a clear understanding of the health of your company, you will be well equipped to earn more money, keep more money and accelerate business growth.
- Fact-based decision making – A CFO or anyone else who is an employee of a business is susceptible to internal influences of a firm and its machinations. Removing the CFO function from staff increases the physical quality of the insights they offer. Only an independent VCFO can provide unbiased analysis of finances, which is a crucial benefit of outsourcing the function.
Services Provided by a Virtual CFO
The services of a Virtual CFO are mentioned below.
- Financial planning, like cash flow forecasting
- Financial reporting
- Financial risk management
- Cost management
- Debt reduction
A virtual CFO’s scope of work for a company typically depends on the company’s size and unique business needs.
Should you decide to get virtual CFO services, then we at JAXA Auditors can help you with it. We are years of experience in this field and make the process hassle-free. Contact us today to know more.