A bookkeeper keeps your financial records up to date. A tax accountant prepares your tax return and financial statements. But who is keeping an eye on your cash flow, budget management, forecasts, expense trends, profitability, financial risk and ultimately the overall success of your business? These tasks would usually be looked after by a Chief Financial Officer (CFO).
As a Business Owner, you may not have the funds to make a CFO part of your full-time staff, and that means you’re filling the role yourself. Often it means that your to-do-list is starting to look more than a little overwhelming. This is where a Virtual CFO can help.
A Virtual CFO (VCFO) is a strategic partner to the Business Owner. They perform the tasks of the traditional CFO role, but on a part-time basis. They look behind the numbers and make sure Business Owners understand all their financial information so they can make informed decisions. They can even sit in on planning and management meetings so that they across all aspects of your business.
As a Business Owner, many people try and be everything to everyone and try and cover all aspects of their business. The idea of a Virtual CFO is that you don’t need to know everything. Instead, you rely on an expert to support you. A Virtual CFO is an expert that supports your business with financial analysis and insights which form evidence for the strategic direction and help identify opportunities. For the Business Owner is all about working smarter, together – not harder alone.
Key benefits of investing in a Virtual CFO for your business are:
- Greater flexibility
You only pay for what you need. A Virtual CFO gives you access to experienced finance professionals without the burden of hiring a full-time employee. This means you get the ultimate flexibility and a return on your investment.
2. Managing your budget
A Virtual CFO will review and analyse a businesses’ prior financial results together with their strategic plans. Your Virtual CFO will help you discover which projects are realistic and which ones need to wait a little longer before you make the jump. They will work with Business Owners to ensure their budgets drive towards their businesses’ future directions and goals.
3. Cashflow management
Cashflow is critical to business success. Do you often find yourself staring at your books wondering where the money went this month? A virtual CFO will implement, update and monitor cash flow forecasting and modelling. They will look over the books and discover where your cash is going and work hand-in-hand with you to create strategies to manage cash flow and assist in business growth.
4. Management reporting and dashboard reporting
Management reporting is essential in giving a business a financial view of how they are performing. As a Business Owner, if you are not getting management reporting each month, you could be missing out on information that can help your business grow or prevent you from implementing costly programs that don’t provide a return on investment.
5. A sounding board for your business
As a Business Owner, you are caught up in the day-to-day running of your business. It is often hard to step back and look at things objectively. This is where a Virtual CFO can help. They can act as a sounding board for all important significant decisions that may impact your financial situation.
Engaging a Virtual CFO will give you benefits that are pivotal in achieving your financial goals. A Virtual CFO service is not about telling you how to run your business, instead of the critical purpose if to give you timely and accurate financial information and meet with you regularly as a sounding board to help you make right decisions. They are there to help you do what you do best. They will partner with you to focus on the growth and success of your business.
So having a Virtual CFO sounds great…right? Safety In Numbers provides Virtual CFO services. You can find out more in about our services here…..Services