Whether you’re just starting out as an SME or a business entering the next stage of growth and development, it's hard to deny the value of financial support and guidance.
After all, while you may know everything there is to know about your industry or niche audience, the chances are that your financial knowledge is perfunctory at best, especially when it comes to running a business.
Fortunately, there’s a clear approach to take when it comes to putting your best foot forward regarding your finances: hiring a Chief Finance Officer. However, in recent years, there’s been a growing debate between business owners about the merits of hiring a Virtual CFO as opposed to an in-house CFO.
Virtual CFO vs CFO?
Who is a CFO?
A CFO (Chief Finance Officer) is essentially a key executive member of your team who provides financial leadership for the business and supports the CEO and the Board in executing strategy. The CFO oversees the financial management of the company, including financial reporting & analysis for decision-making, business planning and forecasting, ensuring compliance with laws and regulations, and managing financial risks.
They will also ensure financial compliance with the relevant regulatory bodies, meaning that you aren’t left in a difficult situation come tax season.
What is a Virtual CFO?
A VCFO (Virtual CFO) carries out the same duties as a traditional CFO, only virtually/remotely. This means that companies can receive the same level of expert support and guidance for a fraction of the price.
Hiring a CFO vs Hiring a Virtual CFO
If you’re weighing up the benefits of hiring a Virtual CFO or a traditional CFO, there are certain factors that you may want to take into consideration.
Costs
Hiring a Virtual CFO is generally more cost effective than hiring than hiring a full-time employee. After all, this helps you to bypass additional expenses such as recruitment fees, insurance payments and employee benefits. This is before you even consider the numerous ways a VCFO can save your business money through financial assistance and planning.
Experience
Whether you’re outsourcing or recruiting a full-time employee, you should also be sure to vet them ahead of time. This ensures they’ll bring their necessary skill and insight to the role, upholding any promises made in their job application or during a consultation call.
In most cases, VCFOs have years of industry experience that allow them to tailor their approach to financial management to each specific client, which means that they can work comfortably across a range of industries. For example, at Prime Financial, our VCFOs have an extensive professional background and have worked with numerous high-end clients throughout their careers.
What do Virtual CFOs Offer?
If you’re on the cusp of hiring a Virtual CFO, then you may be wondering what to expect moving forward. Generally speaking, you can expect to receive the same level of care and support from a VCFO as you would from a traditional CFO. A Prime VCFO is also connected to a wide range of internal experts and specialists, such as tax advisors, valuation specialists, and M&A experts who can assist you in navigating the evolving business landscape while supporting your business's growth journey.
Beyond this, virtual CFOs provide businesses with greater peace of mind throughout all stages of growth and development. They provide insights on business performance & financial position and manage financial risks to enable sustainable growth.
Ready to Hire a VCFO?
Looking to modernise your approach to financial management or want to future-proof your business? Consider hiring a VCFO today!
After all, welcoming a VCFO to your growing team will enable you to:
- Access expert support and guidance without the costs of hiring a full-time employee.
- Take a step in the right direction when growing and scaling your business, and ensure that you have a strong foundation set up to do so.
- Make the most of tax initiatives and schemes while ensuring compliance across the board.
- Relax, knowing that your finances are being taken care of without placing an additional burden on your existing team.
Get in Touch
If you aren’t sure where to start when finding a VCFO you can trust, look no further than Prime. With years of industry experience, our accounting and business advisory services are built with small businesses in mind. Whether you need assistance when it comes to financial forecasting and raising capital or simply want to ensure your books are accurate and up to date, we’ve got you covered!
CFOs are more than just financial gatekeepers, and when you have the right CFO on your side, you can take your business from strength to strength. If you’d like to find out more, please do not hesitate to reach out today by filling out the form below to set up a consultation.
