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6 Advantages of Hiring a Virtual CFO to Grow Your Business

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As your business grows, there are always financial challenges that appear along the way. Your business may not be ready for the cost of a full time CFO to help find the advise you of the right solutions. Hiring a Virtual CFO is a great way to access the vast knowledge of a Chief Financial Officer, while avoiding the expensive salary.

Do you believe your business is too small to need a chief financial officer (CFO)? Or will you only hire one once your company has grown to a specific size or degree of profitability? There are various ways you would benefit from virtual CFO services, even if only for a few hours per month. 

The appropriate CFO can assist you in developing and validating growth and viability initiatives in your business. Virtual CFOs are more than just a controller; they provide a financial perspective to business owners. They are aware of “business drivers,” dangers, and how to add value to your products or services. 

The Virtual CFO is not a “bean-counter,” but rather someone who collaborates with the CEO to carefully handle the potential and dangers of growing your company to the next level.

See the top six benefits your business will have with the guidance of a Virtual CFO

Cash flow management

A fundamental hurdle for entrepreneurs is financial runway – that is, having enough money in place to get to their next round of funding. In reality, because they are dealing with significant expenditures and minimal to no income, the majority of them are likely to spend their whole original capital before establishing a market presence. This is when a fractional CFO can come in handy.

As the steward of resources, the virtual CFO may assist in limiting expenditures and keeping costs from spiraling out of control, ensuring that there is money in the bank and that the organization remains sustainable during its most difficult years.

Creating strategies

Financial data assists in cost accounting, better understanding of consumer behavior, and much more by providing timely and accurate insights. The rising usage of data analytics in firms allows CFO’s to rapidly expand to incorporate business strategy advice.

Using comprehensive data gathering from CFO services, you will properly comprehend the available indicators and develop data-driven plans that can help your business compete better with rivals.

Directing funding

Startups require a large sum of money to advance to the next level. Typically, this stage includes engaging venture capital companies to get Series A and, eventually, Series B funding.

The virtual CFO is critical in preparing the company to raise financing. They can assist with due diligence, financial planning, and getting the appropriate KPIs in order. Through their guidance, you will learn how to intelligently spend that money so that the investment acquired has the most influence on your business.

Taking advantage of fresh opportunities

The CFO is your company’s visionary. They come up with creative methods to say “yes” to new business prospects. If they are unable to develop an action plan or timeframe, they will assist you in developing other techniques to ensure that your organization achieves the intended result.

Creating an efficient infrastructure

CFO services can help a company prepare for changing business conditions as it grows by assisting in the establishment of a solid foundation.

A skilled CFO can step in and implement scalability in practically every part of the organization. This includes payment processing, payroll operations, human resources, and accounting systems.

Getting ready for the next stage

As a startup matures over time, it may plan expansion, issue an IPO, merge, or be bought out if the business does not fail. 

A virtual CFO’s duty includes preparing the early-stage business for unforeseen events and ensuring a smooth transition. The services of a CFO also helps you in making the best decisions as your business prepares to expand. They can determine when you might need to hire more people.

Alternatively, if you intend to invest in a new company, the outsourced CFO may advise you on when and how much to invest. By modeling all possible outcomes of the investment, they will let you know when to double down or pull back. This way, you will better understand the benefits and cons of your plan before moving forward.

Final Thoughts: Benefits A Virtual CFO Can Bring to Your Business

If you decide to start looking for a CFO, seek for someone with relevant industry expertise, communication skills, and cultural fit. Find a candidate who understands and truly embraces the success you foresee and knows how to get you there.
Look no further for an experienced and trusted virtual Chief Financial Officer. Here at Today CFO, we offer a free, no obligation consultation to show you how our services and accounting expertise can help your business stay financially healthy.

About The Author

Tom is the creator of the AIM Framework and Accounting Impact Method. He spends less time on fruitless theoretical methods, and most of his time bringing practical financial, tax, and technology solutions to business owners who want to make an impact on the world.

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