Virtual CFO: What are the Benefits of Hiring One?

Would outsourcing an experienced Virtual CFO help your growing business? Expert guidance in cash flow, budgeting, reporting and financial strategy can give companies a competitive edge. However, some companies don’t need, or have the resources, to hire a full-time employee to fill this role. A Virtual CFO offers flexible financial leadership for growing businesses.

What is a Virtual CFO?

Chief Financial Officers (CFOs) handle a company’s financial and compliance needs. A Virtual CFO fills the same roles as a traditional CFO, but they work on a part-time virtual basis. By using the services of an outsourced virtual CFO, smaller companies can benefit from high-level talent without paying the salary or benefits of a full-time CFO.

Virtual CFOs (or Fractional CFOs) support multiple companies on a part-time basis rather than running one department full-time. This arrangement allows a company to access the high-level talent it needs for only the hours its budget allows.

In addition, to save clients money, the fractional virtual CFO can focus on only the high-level tasks and delegate the less complicated tasks to more junior staff members. The A Team can work with your company to provide the right virtual CFO services based on your specific needs and budget. 

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What Could a Virtual CFO Do for Your Company?

Why does a company need a CFO? Financial leadership can help a company improve profit margins and make the correct investment decisions. Without a CFO, the finance department is missing a leader to take responsibility for decisions made or practices put in place. And a virtual CFO fills this role in a part-time, virtual capacity.

This experienced finance officer will help a company:

  • Understand the market and customer segments
  • Develop data-based financial forecasts
  • Build a solid strategy surrounding market price and cash flow
  • Condense expenses and improve profits for the best possible returns
  • Build a long-term financial strategy for sustainable growth
  • Adapt policies and procedures to meet regulatory compliance expectations
  • Improve time management and protocol in the finance department
  • Organize the books for improved tax filing and insightful reporting

What Benefits Does a Virtual CFO Offer?

Hiring a Virtual CFO may be the right solution for several reasons. Here are some of the most common benefits they can offer:

Virtual CFOs offer Leadership for a Smaller Finance Workload

Many companies don’t have a workload that requires a full-time C-suite leader. For example, hiring a traditional CFO could be unnecessary if the company only needs their service 25 hours each month. While traditional CFOs can’t be hired on a part-time basis, an outsourced Virtual CFO starts out with that expectation. Our custom Virtual CFO packages are more cost-effective if a part-time role is required.

Professional Flexibility and Vast Industry Experience

Virtual CFOs aren’t just tied to one company or industry. Most of these part-time financial leaders spend time with many companies spanning many industries. A virtual CFO is highly knowledgeable and can draw from their vast CFO experience. With a diverse track record, a virtual CFO has seen many different processes and strategies. Their experience working with a wide range of companies makes them very flexible and resourceful.

Experience During Periods of Transition

An audit, merger, sale or intense growth period is the perfect time to bring in a virtual CFO for guidance. With a high level of experience, the financial leader can help with transition-specific tasks. Transition periods might benefit from a corporate leader guiding, funding, organizing the books or cutting expenses to show a higher profit.

Supports Sustainable, Steady Growth

Businesses thrive with a stable growth pattern. Growing too quickly can cause unmanageable stress, while growing too slowly can stagnate profits. A Virtual CFO helps companies achieve the right level of growth. Strategic business moves and budgeting will allow a company to grow at a steady and sustainable pace.

A Virtual CFO Brings Clarity to the System

Finance departments should be transparent and reliable. Experienced leadership will establish processes and guidelines to support a highly efficient finance department. Improving the functionality of finance helps make the process more transparent. Virtual CFOs organize financial infrastructure and build integrity-based systems to help companies thrive.

How Can I Hire A Virtual CFO for My Company?

The A Team offers Fractional Virtual CFOs who have substantial experience with filling part-time executive positions. If a flexible and experienced finance professional sounds like what you need, call us at 646-849-4267 or send us a message today.