Virtual Chief Finance Officers have become popular in recent years for a very good reason: you get the perks of a CFO (their invaluable numbers expertise) but for a fraction of the cost because rather than employing someone in house (on a very chunky salary), you can have a VCFO perform the role when you need it throughout the month or year. So what does a VCFO do and why might your business need one?
VCFOs are business experts
Just because you own a business, doesn’t necessarily make you a) a good business person (we often see this with clients who are very skilled at their profession, take healthcare for example) or b) suddenly great at finances. Sticking to what you’re good at and outsourcing what you’re not is key to business longevity and success.
Advice on all things finance, tax and accounting
As your VCFO, we can educate you on the most important figures and data – what they mean and why they matter. We’re here to answer questions and ensure that your finances are in order in both broad and detailed strokes.
Strategist and sounding board
For many business owners strategy is a strength, however you may find that when you get to a certain size, overarching strategy decisions can be overwhelming. Ensuring business and financial goals are aligned is an important role that a VCFO plays. We are a sounding board, an objective person to ensure your strategy makes sense and someone that will help direct the business well into the future.
Having a strategy and goals in place is great, but we all know that sticking to those milestones and implementing change is a completely different story. We keep you accountable – check in to make sure you’re on track, meeting deadlines and putting the strategy into action.
This is where those numbers really get taken to the next level. We are fluent in finance; creating various assets like dashboard reporting which involves looking at your actual performance versus your budget and goals, your balance sheet, cash flow and trends. What do the figures actually tell you and what decisions should you now make as a result?
Increase profitability & reduce costs
If a VCFO isn’t helping the business make money, are they really a VCFO? Of course this comes with plenty of disclaimers such as – what state is the business in when the VCFO is engaged? However a key goal for any VCFO is to increase the profitability (and therefore reduce costs) of your business. More often than not, this will come down to cash flow management, internal processes and of course, your strategy and business plan.