What has COVID 19 done? Disruption – Biggest in shortest duration, of our life time.
Lock-down, a reality, everywhere, in one way or the other.
What to do? Behavioral change – though Optional for each one of us. What lies Ahead ?
Opportunities!! Driven by changed behavior in a new world. Yes, it is a changed world now. A world with new rules and new behaviors. At a meeting, no more the obligation of the host to arrange coffee, each participant gets own!
Change to the virtual world. Zoom into the future! Find a need or a reason to change. Identify what to change. Think creative and out of box.
If you’ve hit this point, one big question on your mind might be, what is virtual ? And more importantly, does my business need one? Read on to learn about the services a VIRTUAL CFO provides, the benefits of having one, and how to determine whether virtual CFO services are a good fit for your business.
What Is A Virtual CFO?
A virtual CFO is a person who performs the services of a 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.
Limited capital and a lean operation are typically some of the defining characteristics of startups; as such, the need has grown for a way to work with niche professionals, like marketers, strategists and accountants, at an affordable cost.
Enter the world of outsourcing
With outsourcing, young companies are able to harness the expertise of highly skilled professionals at a fraction of the cost of attracting and retaining a full-time employee. The party being outsourced (like a virtual CFO), on the other hand, is able to provide their expertise to a diverse set of clients, splitting their costs and time among them. It’s a win-win for both sides.
Here are just a few of the services a virtual CFO might provide:
- 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 financial needs.
Benefits of A Virtual CFO
There are many benefits to hiring a virtual CFO to help manage your growing company’s financial posture.
Control costs
Perhaps the biggest benefit of a virtual CFO is the ability to control costs. Hiring a virtual CFO allows you to control costs by getting only the services you need, when you need them, without the need to roll benefits and other terms of employment into the equation.
Customize based on your needs and budget
A virtual CFO service can customize the skills and scope of work necessary to fit the company at hand, without paying for anything that’s not needed. These services can also be shifted as needed as your business grows and changes.
Grow with you
One of the best parts about using a virtual CFO solution is that it can grow with your business. Your needs at the 1 million revenue mark will be different than your needs at the 10 million mark, and so on. A virtual CFO can help you navigate through different growth phases form a financial perspective.
Diverse expertise
Most virtual CFOs work with a handful of different clients, enabling them to maintain affordable rates for each one. As a client, you’ll benefit from this diverse pool of experience and expertise.
A virtual CFO sees countless different financial situations and resolves a number of diverse financial conundrums. Chances are, whatever your unique situation, your virtual CFO will have seen it—or something similar—before and can advise you accordingly.
Now more than ever, startups and established companies are looking for ways to run lean. There is pressure to make cuts to staff and outsource when possible, and this has led to a trend of hiring virtual CFO services over the more traditional in-house full-time CFO.
WHAT DO VIRTUAL CFO SERVICES OFFER?
We’ll cover some of the more specific deliverable below, but let’s start with some of the broader benefits of virtual CFO services.
- A CFO can identify and manage bookkeeper/controller to produce reliable data and interpret the results, providing insight to help steer the ship toward your stated goals. The result is that you know exactly where, when, and how to focus your team and inform your stakeholders.
- A CFO can be a much-needed sounding board, coach, or guide. Look for a seasoned veteran who you can trust, not merely someone to fill a role. In the end, you’ll have a team member who knows your business and can help hold you accountable as you work to reach clearly-defined goals.
- A CFO can position the finance function as a competitive advantage. An experienced CFO can help you cut waste, deploy cash efficiently, and find opportunities for greater production or expansion. With their help, you can be in a position to step ahead of the other organizations in your niche.
In addition to these more over-arching items, virtual outsourced CFO services almost always offer:
- Identify key metrics and map out reporting to monitor
- Interpret financial results on a regular basis
- Manage annual budgeting process, development of annual strategy
- Cash management & planning
- Strategic planning
Fighting against common enemy (COVID 19) has taught us sharing, be it wealth, knowledge, experience or even attitude. Stay Safe
Thank You,
CA Mohit Ahuja
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