April 24

8 Reasons To Hire A Virtual CFO

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Introduction

Any budding business can benefit from a dedicated financial management team, but very few have the resources to deploy one – especially in their developing years. 

The first few years of a company are crucial in developing productive habits such as managing financial resources. If properly managed, good financial habits can either make a company or break it.

But what if you do not have enough resources to hire a dedicated team and an In-House CFO? Are you equipped to handle your company’s finances yourself? Can you run your business and spend your time doing lengthy paperwork?

reasons to hire a virtual CFO - when you hire a virtual CFO you're hiring a financial expert to help your business grow

This is where hiring a Virtual CFO can solve your problem. Hiring a vCFO is an affordable option for business owners who recognize the need for having a financial expert take care of their accounts. Virtual CFOs provide incredible value, cost-saving, and expert advice when needed.

In today’s blog, we will discuss the 8 reasons to hire a Virtual CFO.

  1. Make Better Decisions
  2. Raise Capital When You Need It
  3. Avert And Manage Risk
  4. Evolve Better
  5. A vCFO Fits Like A Glove
  6. Staff Training
  7. Optimizing Cash Flow
  8. Saving Up Time
  9. Retain Your Focus

Reasons To Hire A Virtual CFO

1. Make Better Decisions

A Virtual CFO will analyze your company’s finances and provide an overall health report. The expert advice given by the CFO will keep you informed about your company’s revenue.

This is important in making strategic decisions or ongoing profitability. This sort of senior-level financial oversight will allow you to recognize the weak spots, opportunities, and risks in your business. 

For a small business, it is crucial to gain expert oversight so you can create a realistic and actionable business plan that will allow you to set the trajectory for your company’s growth.

2. Raise Capital When You Need It

When the time comes to scale your business, expand operations and launch a new product. A virtual CFO will come in handy. They can suggest the best methods to raise capital. This will include acquiring business loans, seeking venture capital, industry grants, or crowdfunding.

A virtual CFO will also help you cut costs, save money and prevent leaks in your budget.

virtual cfo reporting - reasons to hire a virtual CFO

3. Avert And Manage Risk

A business is something that needs constant protection, especially in its developmental stages. Any threat to its success should be managed proactively. This could be anything from a cyber attack to a fire or a flood. Anything that can cause long-term damage should be dealt with.

A virtual CFO can provide a risk assessment for you. After that, they will advise you to invest properly, get the right type of insurance, and how to protect your sensitive data, inventory, and equipment. 

4. Evolve Better

Whenever a business goes through a transition period, having a high-level manager oversee the operation is helpful. A vCFO can oversee the numbers to measure and assess long and short-term business performance.

If a business is in flux and the cash flow is in a negative position, your vCFO can determine the causes of it and help you fix them. Similarly, if you need a complicated problem solved, a vCFO can provide expert advice.

5. A vCFO Fits Like A Glove

When hiring a vCFO, you decide the working hours, the services, and the contract length. Depending on your need, choose an expert that is skilled in your field. It is a cost-effective solution for your small business.

Being able to manage your company’s finances is going to be a challenging task. Most owners find it hard to run the company and manage the finances. Although, if you hire a vCFO, they will come with their team of accountants, bookkeepers, and staff. This will take the burden off of your shoulders and allow you to manage your business with ease.

a virtual cfo brings systems and processes to help your business

6. Staff Training

If your financial reports are never quite right, something keeps changing, and at the end of the year, there are many audit adjustments. Then these are the signs that your finance team or bookkeeper needs senior-level support.

There can be knowledge gaps, too much workload, and difficult issues in the company. But having a senior, who can train your staff to better manage their workload, will be a great help. An expert on top will improve the confidence in your financial reports.

Not only will your vCFO train your staff, but help them create processes that will add to your company’s performance even after they are gone. 

7. Optimizing Cash Flow

If your cash flow is getting tighter, or a new contract is on the horizon. Then it is time to hire a vCFO. 

Your vCFO will project the accurate time length of when your cash flow will be running low. This will limit your options, but with an expert on your side, you will be able to explore other options. All of this allows you to make better, well-informed decisions.

Similarly, if you are about to get a new contract, you need all of your statistics on your desk. This improves your negotiating position with potential lenders or investors.

8. Saving Up Time

As a business owner, your focus should be on running your business, not on micromanaging your books. A lot of business owners face this problem. Whenever your bookkeeper or accountant is not able to solve a problem, you have to step in which takes away your valuable time.

Hiring a vCFO will save not only your time but your bookkeeper’s time as well. Let the expert train your staff to solve complicated problems. They have years of experience on hand which can help you clean your books in no time.

Bonus: Retain Your Focus

Whenever a company is growing, things tend to get complicated. Maybe you have added more staff, services, and products. This will eventually lead you to spend more time and energy managing those products and people. However, this leaves less time for other important tasks. 

If you outsource your bookkeeping, accounting, and finances to a virtual CFO, it will save you more time and energy in the long run.

Conclusion – When You Hire A Virtual CFO, You’re Hiring A Partner In Your Businesses Success

Virtual CFOs are flexible with the organizations that they work with. They try to support their working environments as much as they can. This can be a regular engagement, a full week, or a whole month. 

The effort levels will fluctuate depending on your need. The contract nature of the arrangement will make it an affordable option for you. In return, you get better business decisions and a stronger company.

Virtual CFOs are experienced in different sectors. They will bring that experience and knowledge to you, which otherwise would not have been accessible to you. Virtual CFOs will become a part of your management team and help you succeed in your goals.

All organizations need such a resource to manage their finances effectively, and we are here to help. At Intrepedium, we provide the best services your small business needs. Whether it may be related to hiring a Virtual CFO, bookkeeping, or taking care of your accounts — we have it all covered. Contact us to find out how we can empower your business.

If you have any questions for us, send us an email at info@intrepidium.com. Be sure to check out other blogs on our website. Until the next one!

Ryan Roch, CEO Intrepidium Consulting Inc.

About the author

Ryan Roch is the CEO of Intrepidium Consulting, offering customized Bookkeeping, Accounting, Fractional CFO, and Tax Preparation Services to small and medium-sized businesses. With extensive experience in financial reporting, strategic planning, budgeting, compliance, and cash management, Ryan helps clients overcome financial challenges, gain clarity, and achieve their growth objectives.


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