A growing startup scene, access to high speed internet and online software and apps has generated a need for part time, casual experts in Financial Aspects of small businesses. Just like bookkeeping is being outsourced to independent contractors the role of Virtual CFO is also being contracted out to companies who can’t afford to hire a full-time CFO.
Small businesses that are experiencing rapid growth and change need to understand their financials and be able to plan ahead for cashflow to be able to finance their fast growing businesses, particularly if they are hiring and have taken on debt to grow. A virtual CFO enables the business to keep fixed costs low while getting access to CFO services when needed.
A Virtual CFO provides services which are not always provided by their accountant and if you choose well you’ll find that the Virtual CFO will also be able to bring with them their experience working in bigger companies.
The primary role of a chief financial officer in any organization is to oversee, maintain and report on the financial activities and manage financial risk of the business. A significant part of this role is to perform financial planning tasks like forecasting and budgets to ensure the business remains financially healthy while it is growing and the needs and costs of the business are changing.
In performing these tasks the Virtual CFO will need to understand all aspects of the business including age of debtors, management of inventory but also identifying aspects of the business which need to be systemised as well as aspects which can be outsourced or that the business should exit to focus on it’s core and efficient skills.
