How a virtual CFO can help your business

Every business can benefit from building a financial team that includes an accountant, bookkeeper and virtual CFO, but very few small businesses have the means to do this from the start.

When people start out in business they get an accountant as they know they need one. But they mistakenly think this accountant is going to cover all financial things for them. Where in reality they often just focus on the compliance matters like business structures and taxation. 

From when a company is just starting up, establishing good habits with managing financial resources is so important, and, over time can even make or break a business.

Hiring a virtual CFO is an affordable option for business owners who recognize the need for a financial expert with small business experience. Virtual CFOs provide top level advice just when you need it, offering incredible value and cost savings to companies focused on growth and long term success.

Here’s why your small business might want to consider the benefits of working with a virtual CFO.

High level decision making

A virtual CFO can analyse your company finances and provide expert advice to help you make more informed, strategic decisions for ongoing profitability. That senior level financial oversight can help you understand any risks or weak spots, identify opportunities, and create a realistic and actionable business plan that steers the company precisely where you want it to go.

Cashflow, forecasting & budgeting

A virtual CFO has a better understanding of the day to day finances of the business. With this they are able to assist with forecasts of what your cash position is likely to be at any given point in the future.

For example, at The Healthy Business Lab, we have created the world’s first Profit First specific cashflow forecasting platform. And we use this on a daily basis to help clients have very clear oversight of their challenges and opportunities. Which in turn helps decision making.

A flow on from forecasting is then to produce budgets that help track results with expectations and stay accountable.

Managing risk

Your business is an asset that needs protection from any potential risk that may threaten its ongoing success. A fire or flood, cyber attack, or employee theft can all cause long-term damage if you don’t take steps to protect your business. A virtual CFO can undertake a risk assessment and ensure you are investing wisely, have appropriate insurance and that your sensitive data, equipment and inventory are secure.

Facilitating change

When a business is in a transition period, it’s valuable to have a part time senior-level manager overseeing the numbers to measure and assess long and short term business performance. If the business is in flux and finds itself in a negative cash-flow position, your virtual CFO can quickly help you determine the key factors and take immediate action to correct.

A custom fit for your business

When you hire a virtual CFO, you decide how often their services are required and only pay for the services you need. Hiring a financial expert on contract is a cost-effective solution for businesses that only need part time support.

Staying on top of your company’s financial management is a struggle for many small business owners, who spend much of their time attending to customers and profit-generating activities.

Working with a team of accountants, bookkeepers and a virtual CFO can help you better manage the most important aspect of your business for ongoing growth: the profit.

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