A Chief Financial Officer (CFO) is an experienced professional who oversees management of finance and provides direction necessary to produce timely and accurate financial information which improves decision making, reduces business risk and provides peace of mind.
Most of the small to mid-sized organizations do not have the resources available for hiring a full-time CFO. Moreover in such organisation, a CFO is often required only on a part-time basis, supported by a team of accountants for processing of day-to-day and accounting and financial transactions Hence a part-time CFO is an ideal match to the needs of many small and mid-sized organizations.
Improvements in modern technology have contributed to the rise of the virtual workforce. A Virtual CFO Solution means providing expertise of a CFO on a shared basis. A Virtual CFO can provide the level of expertise you need as a part-time contracted resource. Virtual CFOs will work with you to manage and build your business by ensuring that your financial resources are well managed and available when you need them.
Below listed are few reasons to consider hiring a virtual CFO for any organisation:
1:- Experience and Perspective
Virtual CFO is trained for this position. He has experience in managing finances for multiple companies, and is confident in offering financial solutions for your specific company. Virtual CFOs are able to provide the services which are best suited for the company.
2:- Flexibility and Scalability
One of the benefits of hiring a virtual CFO is flexibility. Virtual CFO allows you to specify the number of hours depending on requirements, which means you will only pay for the time they are spending on the project. Ramping up and down is much easier with virtual CFO as compared to Full Time CFOs.
3:- The bottom line – Cost efficiency
You can hire a virtual CFO at a fraction of the amount it would be to hire full time CFO. It ends up saving you from paying for extra office space, computer equipment, a full salary and other perquisites.
4:- Independent perspective
Sometimes you just need a fresh pair of eyes to see a situation clearly. A virtual CFO gives an objective look at your financial situation to help you resolve any issues efficiently and resolve them in a timely and cost-efficient manner.
5:- Making strategic decisions
With a trained accounting professional explaining the details of your business’s financial situation, you will be better informed about your status and your options for moving forward. This will allow you to make more effective strategic decisions every step of the way, thus ensuring that your business will be as profitable as possible in the future.
Hiring a virtual CFO is substantially less expensive than hiring the wrong “in-house” candidate. You won’t have to leap into a full-time salary, or negotiate stock options and other perks and benefits that typically go along with keeping an in-house CFO happy and motivated.
There are always pros and cons to hire any executive, whether internal or outsourced. One of the biggest advantages of hiring a virtual CFO is that is gives you time. This is the time to organize and vision for your company’s future.
Making the right choices to hire a virtual or outsourced CFO may be the difference between success and stagnation in your business. Consider it carefully.