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Virtual CFO: What are the Benefits of Hiring One?

CFO

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.

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