Should You Hire a Virtual CFO?

Companies of all sizes can face multiple problems when they first start off and financial difficulties are one of the main ones. Managing finances when first starting up can be confusing and stressful for those who haven’t had to deal with it before and have a lot of other things to deal with, which is why people normally have an in house CFO who deals with only this. However, hiring a virtual CFO can take the strain of finding a CFO and having to worry about the finances off of you, leaving you to deal with everything else that comes with starting a new business.

They Will Save You Money

Virtual CFOs will save you money as you only need to use them when you need them, as little or as often as you need (see flexible options below). Rather than having a full time CFO in the office all of the time, demanding a high salary, you can choose when you need your virtual CFO’s help and pay them accordingly. As finance is one of the primary driving points of starting a company, it is important to save money where possible, why not start by eliminating one of the highest paid employee positions and replacing it with a more cost effective solution?

Tailor Made Strategies

As an independent company, virtual CFOs have all of the skills that normal CFOs know, but they can apply the to multiple industries and situations. They are able to understand that not all of these strategies may apply to your specific business, meaning that they can utilise the ones that do apply to give you the best chance at financial success. After having experience working with these strategies before, they also know their way around each one, allowing them to be able to implement these for you with ease and success.

Flexible Options

Having a virtual CFO, over a normal, in house CFO, means that you can have them available when you need them. This is beneficial especially as the need for financial assistance can fluctuate over time and sometimes you may not need a CFO’s help for weeks at a time. However, sometimes you may need them a lot, and when that time comes, a virtual CFO will be ready to assist immediately and for as long as you need them, making a virtual CFO much more accessible than a normal CFO who comes in at 9am, leaves for meetings throughout the day, and then is out of reach by 5pm.

Independent Perspective

With hiring a virtual CFO, they are able to look outside the box that you can get stuck in mentally. As they aren’t in the same position as you, being immediately and 100% invested in the company, they are able to look at other solutions to your financial problems that may not be apparent to someone directly involved. Having a pair of fresh eyes on your finances can help to see issues that you may not have realised were there initially, and help you resolve them in a timely and cost efficient manner.

Professionals In Their Field

A virtual CFO has trained for this position, has experience in managing finances for multiple companies, and is confident in offering financial solutions for your specific company. Being solely focused on improving your financial position, a virtual CFO will offer you their professional aid, and as many solutions as you might need throughout your company’s lifetime. Because they know what they are doing, they are able to give your company the type of service that your company requires.

The importance of managing your finances is elevated when starting a business, as developing and improving cash flow is the primary goal and you can’t achieve this goal without taking charge of your finances. A virtual CFO will help you achieve this from the beginning, with the aforementioned benefits, whilst also preserving the outgoing salary you would typically spend on having a full-time, in house CFO. Taking the time to consider whether a virtual CFO is right for you and your small business can make a huge difference to your company’s cash flow situation and can get you on the right track to financial success.