Hiring a Chief Financial Officer (CFO) is essential to manage the financial and strategic activities of a business. Thanks to modern technology, the CFO need not be present physically on-site to do so. You can now outsource the services of a CFO virtually. The concept of virtual CFO is on the rise these days because just as any full-time CFO, a virtual CFO helps an organization in managing finances, planning strategies and mitigating risks. Virtual CFO services are the same as the services rendered by an in-house CFO, only with added incentives.
Here are some points to give you a better idea on how your businesses can benefit from Virtual CFO services –
Virtual CFO services are more flexible as compared to a full-time CFO. They are not always present in the office but are available as and when you need them. They provide customized services that are designed to suit your organization the best.
Hiring a virtual CFO is less expensive which makes it affordable even for small and medium enterprises. Why go for a full-time CFO when you are getting the same services by paying less? Outsourcing CFO services is a cost-efficient way to manage your business operations. Unlike an in-house CFO, virtual CFOs are not fixed-salary employees. Virtual CFOs are paid based on the service/time rendered.
Virtual CFOs have a vast experience of working with varied organizations. They have a great deal of exposure, right from SMEs or start-ups to big multi-national companies. Their experiences are not confined to the issues relating to a single entity. Working in a diversified environment gives them the exposure required to handle challenges in the complex business environment.
Do you encounter problems in accounting for your cashflows? Virtual CFO services seek to address this problem by helping you understand your current cash position and also suggest ways in which you can increase your cash flows. They design cashflow management strategies while keeping you in loop regarding the movement of your cash.
Since virtual CFOs work with multiple industries, they adopt reporting and formatting standards that are widely accepted. They follow a particular set of standards that are accepted in the industry by all. Such practices facilitate easy inter-firm comparisons and also helps the stakeholders to understand the functioning of business better.
Working with several organizations, virtual CFOs build a wide network of resources that you can take advantage of. Usually, Virtual CFO service providers are part of a team, which gives you access to the shared intellectual capital of the entire team.
Virtual CFOs are not entangled in the day-to-day accounting activities. This helps them in focusing their energy on their primary role of strategic and financial planning. They can focus on core areas of business without being distracted while the other employees carry out their routine operations.