If you are launching a startup, you may not have the budget to hire a full-time CFO (chief financial officer).
This is where a virtual CFO could prove useful. Unlike a full-time CFO, a virtual CFO manages the financial actions of your business remotely through video conferences and phone calls.
A remote CFO offers the following services that include but are not limited to
- Interpreting financial results regularly
- Recognizing key metrics
- Planning and managing cash flow
- Managing yearly budgeting procedure
- Developing an annual strategy
- Creating the budget
- Highlighting market trends
For more information on why a remote CFO is best for startups, read this article.
1. Get a high return on investment
The primary motive behind hiring a virtual CFO is to save money. You can hire one for as many days as you need them. Also, you do not have to offer them space in your office or roll out other benefits that you offer your full-time employees. Additionally, CFOs identify enough opportunities to reduce costs that compensate for your investment in them.
2. Avail of in-depth industry knowledge and diverse financial skills
Virtual CFOs are specialists in a particular industry and have deep experience working with multiple businesses of various sizes across different sectors. Consequently, they demonstrate relevant knowledge of your business. Since your CFO has experience working with several new businesses, he has a short learning curve and can quickly adapt to your needs.
3. Obtain an external viewpoint
As a startup owner, you tend to focus entirely on growing your venture. At such times, paying attention to the financial aspects of your business may become a challenging endeavor.
A virtual CFO who works remotely observes things from an external perspective and hence, may offer a neutral outlook or insight into something you missed. As a result, you can revamp your business’s financial side besides spotting favorable circumstances for growth.
4. Make the most of customized services
As you opt only for those services that you need, there is no need to waste money paying for other services. For instance, the financial requirements of a pharmaceutical company are different from that of an e-commerce firm. Both have unique needs when it comes to processes, reports, and forecasts.
A remote CFO can customize the scope and skills of the work to fit your company’s specific needs.
5. Grow with someone
Your venture and the virtual CFO can grow with each other. For example, when you start, you may need the CFO only once a week. But, as your business grows, you may want his service for more extended periods.
With the help of the remote CFO, your business may be able to grow to a level where you can afford to hire an in-house CFO, which would be a more long-term solution.
6. Gain advice on systems and software
There are too much jargon, tools, and software that businesses use nowadays when dealing with their finances. For someone inexperienced, these can be overwhelming. However, a virtual CFO can take care of all of this so you can focus on running your business the best way possible.
Additionally, they can help you decide where to start and what system to use, ensuring you do not pick the wrong software for your business needs. With their experience, they can give you proper advice on a wide range of products.