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- Reading Time: 7 Minutes
- Published: April 5, 2021
- Last Updated: January 15, 2025
Starting a business takes up a lot of time and effort but what is more difficult is to grow your business. Every business becomes stagnant at one point, for example you might stop gaining new customer or maybe your sales are going up until only a certain point. In such case, you must analyze every possible reason behind the same, at time the reason behind this might be lack of financial planning and forecasting. As a business owner, especially someone who has no in-depth financial knowledge, might find it difficult to understand the reason behind the same. In the worst-case scenario, few business owners do not even realize that there is a problem with their business.
Growing business means there are numerous responsibilities that needs dedicated time and resource, finance is one such process. When we say finance, we are not talking about daily bookkeeping and accounting. We are assuming that you are paying attention to your accounting and bookkeeping task already. What we meant by finance is the bigger picture – the financial health and strategic financial growth of your business. Your bookkeeper is taking care of the books, and your accountant is handling the accounts and ensuring you are not falling back on any statutory financial and taxation requirement. However, what about the financial planning, growth, funding risk management and making use of the financial information to make sense out of it
These are all task that a person assigned as a Chief Financial Officer (CFO) will take care of. While most business owners acknowledge the fact that they do need a CFO for their business yet they do not hire one and the main reason behind this are – financial constraints. CFO can be a costly affair, and the fact that you will hire them means you will incur expense not just on salary but on overhead expense as well. This restrains a lot of small business owner and startup organization to go ahead and hire a CFO. The good thing is, with the advancement of technology and the popularity of outsourcing, we now have Virtual CFO services in the USA, which helps deal with the disadvantage of the traditional CFO.
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What is a Virtual CFO?
A Virtual (CFO) is a person who performs the task of your traditional CFO virtually at a fraction of the cost. A Virtual CFO can be an individual or a team of people. They are responsible for monitoring the financial health of a business and resolve the issues in operating business transactions. Your Virtual CFO will work remotely and help improve your business financial health and provide strategic financial advice to achieve business growth. Another great advantage you get while hiring a Virtual CFO is that it does not have long-term implications; that is, you can hire one on a monthly basis or a contract basis. A Virtual CFO has all the experience of the full-time CFO, and they will supply all of the business insights like a full-time CFO. It is an incredible opportunity for a small business to get enterprise-level insights without investing a huge amount of time and money.
What Are The Services Provided by Virtual CFO?
A Virtual CFO service can help you with the following tasks –
- Enhancing financial stability and growth: A Virtual CFO provides you with a clear idea about your financial position in comparison with your competitor or the industry as a whole. They will provide you with strategies that can help you reach your business’s goals. Whether you want to boost profits or decrease spending, you can rely on your Virtual CFO to develop a roadmap to get you there.
- Helps to tackle challenges in cash flow- CFO will look over the complete financial health of the business; they will see how much cash is flowing inside and outside of the business. This will enable you to understand the reason for the cash leak if any.
- Capital Recovery – Hiring a Virtual CFO can help you tackle capital recovery. As a business owner, you might not be aware of the in-depth financial matter, and this could lead to loss of capital. A Virtual CFO will analyze your financial position and provide strategies to deal with such loss.
- Improve maintenance of documentation and records- You might fall back on checking whether your bookkeeper and accountant are performing their tasking on time accurately. Your Virtual CFO will be responsible for ensuring that your books and accounts prepared on time. In a way, we can say that the Virtual CFO will conduct quality control of your finance process.
Why Should You Hire A Virtual CFO For Your Startups?
- Cost-Effective- A Virtual CFO service will cost you a fraction of what a full-time CFO will cost you. As a startup business, this is very important as you should drain out your money on a task that is not your core activity.
- No long-term implication- When hiring a traditional CFO, you are mostly bound to that person for a long period because of the employment contract breach of which can add up to expense. However, you can hire a Virtual CFO for a shorter period and even while working on a monthly basis, and you can cancel the agreement whenever you like.
- Hiring Process- Hiring a traditional CFO takes up a lot of time as you a recruiting a high-end C-Level Executive. This process itself is not easy and might require an external recruitment agency’s assistance. The hiring process can be complex as you need to have the ability to judge that person’s capabilities.
- Access to experienced professional- When you hire a Virtual CFO, you will be working with an individual or team that has long-term experience in your industry and has the ability to work with bare minimum assistance from you.
- Experience in diverse industry verticals- Virtual CFO tends to have experience in various industry that is extremely helpful if particular you are planning to expand to a different vertical.
- Team of Professional- A Virtual CFO can be personnel or a team of personnel. In contrast, a traditional CFO is just one singular person. Imagine the number of resources you will get access to with the help of this team of professionals.
We at Whiz Consulting provide Virtual CFO service to businesses irrespective of the size of business and the industry it belongs to. As a part of our service, we can help you with –
- Regular bookkeeping services and month-end accounting
- Financial Analysis
- Budgeting and Forecasting
- Tax Planning
- Tax Filing
- Business Valuation
- Funding Evaluation
- Business Acquisition & Mergers
- Analyzing customer acquisition prices and lifetime values
- Strategizing with management and giving financial expertise
Get customized plan that supports your growth
Get customized plan that supports your growth
Thousands of business owners trust Whiz to manage their account
Let us take care of your books and make this financial year a good one.
