If you are confused about whether to hire one or not, here are the benefits of having a Virtual CFO for every small and medium enterprise (SMEs):
Economical:
The first and foremost benefit of having a Virtual CFO is that it is indeed a less expensive option for every business enterprise. The company has to bear the fixed expenditure for a full-time CFO which at an early stage of business may not be feasible. On the other hand, an outsourced CFO is being paid only for the services so rendered by the company. Also, quite unlikely, to the regular expenditure of an employee such as bonus, perquisites, and hikes in salary, the part-time CFO shall charge you only when you avail the services which make your cost a variable expenditure reducing the fixed expense of the enterprise.
Intelligence at Your Fingertip:
The virtual world has made every service available at a fingertip. Your Virtual CFO brings all the financial intelligence at your fingertips. Starting from the conventional book-keeping to achieving revenue goals, the Virtual CFO would give it to you just on the tap of your finger.
Pay Only For What You Use:
When you hire an experienced CFO for your start-up, you will have to pay him a handsome amount even if you do not have much to do in the business at an initial level. That’s where the VCFOs differ. You will be provided with various packages and services options based on which you will be charged. In other words, you are paying for only what is served in the platter.
Richer the Experience, Better The Services:
The companies providing VCFO holds a team of CFOs having multiple industry and companies in the portfolio. This would benefit the small and medium companies as they get to explore various strategies, Finance Effectiveness & business process improvement which otherwise would not have opted for. Although the Virtual CFOs appointed are industry-specific, you still get the opportunity for multilayered insights and networks before formulating any policy or plan of action.
The Team of CFO At Your Service:
When you have hired a CFO, your company is likely to follow the thought process of individual personnel where the chances of getting different opinions and choosing the best out of them become minimal. However, when you have hired the virtual services, you get a full team of CFOs who will bring the best to you after putting heads together. The team of CFO can help with any complex decisions such as new ERP Implementation such as SAP- B1, Microsoft Dynamics, or change to any customized ERPs.
User-Friendly Documentation:
The CFOs generally follow their conventional style of data reporting and formatting which may be difficult to understand and adopt. However, being the Virtual CFO, the utmost efforts are being put to make all the documentation, reporting, and formatting user-friendly which are easily adaptable to the clients.
Easy to Mix With The Existing Team:
The VCFOs has worked with numerous personalities which leads them not to bump into others’ horns. Rather, they have expertise in working with different types of people in a harmonious manner bringing coherence to the organization.
Wide Network:
Most of the Companies providing services of VCFO have experienced CFOs having robust connections in the market. Such wide networking will give you the best deals for raising funds, financing, leveraging, and such other assistance availing which would otherwise be an uphill battle.
The benefits of VCFOs are countless and it’s an aid for the company’s growth & success. However, there are a lot of misconceptions prevailing in the market, it being the unconventional way for business.