When it comes to hiring CFO for your organization, the first question that comes to the mind is whether you should hire an In-House CFO or a Virtual CFO?
Certainly, it depends on the size and requirement of your business. Therefore, it is important to assess the need of your business first and then decide whether you want to opt for a Virtual CFO or an In-House CFO.
What is a Virtual CFO?
Virtual CFO is outsourcing the service that provides financial assistance to an organization. As compared to an In-House CFO, it is more economical and equally efficient. Therefore, by opting for Virtual CFO Services, you can avail the services of highly skilled financial experts to improve your cash flow and profitability without spending too much.
Let’s have a look at the best features of Virtual CFO that makes it more favourable than an In-House CFO.
Virtual CFO offers flexibility according to your business requirements. They have a vast experience of working with multifarious organizations in various industries. Therefore, they are able to handle complicated financial challenges more efficiently.
In case of an In-house CFO, the ability to cope with financial issues is restricted to the knowledge of an individual. Thus, if your organization encounters with any complex financial issue, it will be a challenging task to get through it.
Virtual CFO Solutions act as catalysts for speeding up the productivity of your business. When a new employee is hired, normally they will take 4 to 6 months for understanding and adaptingthe work environment of the company. The productivity of company is nearly stagnant during such period.
Since the experts at Virtual CFO Services have diverse experience in the field of accounts and finance. They are competent enough in providing best solutions in reasonable time; thus, improving the overall productivity of your business.
A Virtual CFO can also assist in fact-based decision making. It’s a critical and complicated task for any organization to make a decision regarding investing and procuring funds. The outsourced CFO services have strong networks of key investors and experts in the industry which enables you to make an informed decision. Hence, it provides one with better options as compared to an In-House CFO.
Focussed Decision Making
A team of VCFO will weigh upon focusing on the core areas instead of indulging into day to day activity like an In house CFO. This ability of an outsourced CFO gives them an edge over the conventional in house CFO by facilitating better decision making, prompt problem solving and smooth implementation of processes ensuring better functioning of the organization.
Team Effort for Problem Solving
A Virtual CFO brings knowledge of a professional team;however,an In house CFO brings only individual experience. A team thus can provide myriad of solutions for a single problem, not limiting the scope of solving for the same which cannot be leveraged by having an in house CFO.
The services offered by Virtual CFO are less expensive as compared to an In-house CFO. Although bigger organizations are capable of affording In-House CFO, when it comes to start-up and small companies, they cannot afford to hire a full-time CFO. For smaller and mid-sized companies, utilizing the benefits of Virtual CFO Services is a much better option. By opting for outsourced CFO services, the companies can reduce its expenses considerably.
Standardized Reporting Format
The experts at Virtual CFO services have good exposure in the field of finance. They understand the importance of widely accepted reporting format thus; they bring reporting in a standard format. This, in turn, helps you in presenting tax reports in best way.