Effective financial management has always played a role in the long-term success of a business. However, with 80% of Australian SMEs battling rising expenses, getting a good hold over your finances has never been so important.
This means that business owners must take an innovative approach to financial management by embracing the latest trends and technologies. Read on to learn more about the changing face of financial management and the role of virtual CFOs moving forward!
What does the future of financial management look like?
AI Adoption
AI technologies have exploded in popularity over the past few years, and the chances are you’re already using this tech for certain business tasks. However, a recent study from Deloitte found that “78% of CFOs expect gen AI to substantially transform their industry in the next five years,” meaning it's likely to find its way into your financial management plans, too. For example, it may automate specific time-consuming operations, such as sending out or processing invoices.
Heightened Efficiency
McKinsey and Company recently predicted that over the next decade, financial companies will work to heighten efficiency within financial reporting and management, moving away from the cost-cutting approach of the past ten years. This is something that can likely be aided by the implementation of AI automation tools, which allow for more accurate and up-to-date record-keeping.
Reliance on VCFOS
The reliance on VCFOs (Virtual Chief Finance Officers) is growing year-on-year. This is because they provide companies with access to expert finance services without the costs associated with hiring a full-time employee. As we continue to shift into remote or hybrid working models, this is something that is likely to continue far into the future!
Moving Forward: The Role of a VCFO
What is a Virtual CFO?
A Virtual CFO is a financial services expert who offers their services virtually. They can assist with a wide range of tasks, from budgeting management to financial forecasting and everything in between. In many cases, they are integral to a company’s longevity, especially during uncertain financial times.
What do Virtual CFOs Offer?
Virtual CFOs offer many of the same services as traditional CFO. This could include:
- Day-to-day accounting support: Bookkeeping, payroll management, cash flow analysis, and regulatory compliance.
- Future-oriented support: Financial forecasting, budget adjustments, and data-backed planning that set you up for long-term success.
- Support when mitigating financial risks: By enabling businesses to make smarter financial decisions (at a lower cost), VCFOs can help them mitigate financial risks at a time when overspending or losses could lead to disaster.
- Expert guidance: VCFOs can also provide clients with expert guidance on all areas of financial management. For example, they may encourage them to make the most of the relevant tax incentives, such as the Research and Development Tax Incentive.
Beyond this, VCFOs provide business owners and financial executives with greater peace of mind, as they know that their finances are in good hands - now and in the future.
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.
