A CFO (Chief Finance Officer) plays a critical role in a company’s long-term success. After all, they work across a wide range of complex tasks, including budgeting, financial forecasting, and drafting complex business development plans.
However, many small businesses simply do not have the budget to hire a full-time, in-house CFO, especially when their business is still in its infancy. This can lead to financial mismanagement and limited growth opportunities.
Fortunately, there’s a clear solution to this issue: hiring a Virtual CFO.
What is a Virtual CFO?
A Virtual CFO will provide business owners (and businesses) with in-depth, tailored support when it comes to managing their finances and bettering their financial prospects. However, while a traditional CFO will work in-house, they’ll operate remotely or virtually.
While it is cheaper to outsource this role, a Virtual CFO will provide clients with the same level of care and support. In fact, they often tend to be more efficient, meaning that their work will be carried out quickly and to a higher standard.
What do Virtual CFOs Offer?
Many business owners believe that a CFO is nothing more than a financial gatekeeper. However, while their support does provide you with a certain level of financial protection, they offer so much more than this.
For example, CFOs can:
- Deal with general accounting tasks, such as budgeting, bookkeeping and payroll management.
- Identify (and rectify) cash flow issues, improving business profitability.
- Produce detailed, accurate financial reports that can be used to implement new growth strategies.
- Provide business owners and financial executives with tailored support and guidance.
- Ensure that businesses can mitigate financial risks in unstable times.
Mitigating Financial Risks with a Virtual CFO
As mentioned above, one of the biggest benefits of hiring a Virtual CFO is that they provide you with the insight and support needed to mitigate financial risks within the day-to-day running of your business.
To begin with, they can help ensure compliance in financial reporting. This means that all of your records are accurate and up-to-date while also protecting you from future legal or regulatory issues. This is an excellent step toward mitigating financial risks, as it can prevent both costly lawsuits and reputational damage that harms your bottom line.
When curating a wide range of financial reports, VCFOs can also help businesses to action changes that put them on the path towards a brighter financial future. For example, cash flow reports can identify specific areas for improvement within daily business operations.
VCFOs can also ensure that businesses take advantage of the appropriate tax incentives and funding opportunities, such as the Research and Development Tax Incentive. This is a scheme that offsets the costs of applicable research and development projects so that businesses can focus on innovation and growth as opposed to wrestling budgetary constraints.
Furthermore, hiring a VCFO is considerably cheaper than hiring a full-time member of staff, especially when you consider the fact that hiring a new employee can cost, on average, $23,860 in Australia, according to a recent report.
In short, VCFOs provide SMEs with access to the kind of comprehensive support, guidance and forecasting that is usually reserved for larger and more established corporations. This puts them in a position to rival these brands in the future by setting them up for success in as many ways as possible.
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.
