In a business, Chief Financial Officer (CFO) is indispensable since he oversees all the functions of finance and accounts. He is a growth driver and plays a pivotal role in the success of an organisation. As it is said, cheap things don't come cheaply, so is a CFO for which company has to spend hefty amount from its purse.
Due to the advancement of technology, small businesses can hire Virtual CFO and connect with an experienced financial professional at a fraction of the cost of a full-time CFO.
What does Virtual CFO offer?
- Handling the duties & responsibilities of a traditional CFO, remotely and on a part-time basis,
- Profoundly analysing the performance and areas of improvements of the business,
- Guiding the business about various issues and assisting it in taking critical decisions.
How is Virtual CFO a precious value addition?
1. Cost Effective - Small businesses aim for growth and stability in a restrictive budget. Virtual CFO charges on per hour basis, and it provides flexibility to the small businesses to extend or reduce their working hours as required.
2. Vast knowledge and expertise - Virtual CFO isn't an individual, it is a group of experienced professionals having knowledge and exposure to different fields and situations. Hiring virtual CFO implies access to vast knowledge, skill, and experience which is never possible in case of employing a full-time CFO.
3. Dynamic in nature - As the small businesses grow, their preferences and focus areas also change from time to time. Virtual CFO helps the organisation in adapting to the changes smoothly with their flexibility. They provide financial assistance to the business in such a way that it supports the company to tweak the aid according to requirements and situation of the market.
4. Improvement in productivity - By hiring a virtual CFO, organisational staff can concentrate on core competencies of business and maximise their productivity. Virtual CFO's are autonomous in their functions and can handle the operations without any significant assistance from the organisational staff which helps the business to do what it does best - earning revenue.
5. Unbiased analysis - Internal employees are susceptible to the internal control mechanisms and procedures. Virtual CFO conducts impartial analysis and provides relevant inputs to the organisation.
6. Adopting accepted industry practices – Virtual CFO, with its team of experts, brings the diverse experience of various industries into the business. While in-house CFO will bring his style and preferences into the reporting structure, Virtual CFO adopts practices widely accepted in the industry. With their rich experience, they also bring accuracy in the reporting environment.
7. Small Learning Curve – Virtual CFO is one who already has diverse experience in handling this function in various organisations across different industries and verticals. They have experience in entering the organisations in mid-process, and with their expertise, they assess the situations quickly and start streamlining the processes at a much higher pace.