Why are Virtual CFOs Gaining Popularity?
All companies need assistance with financial organizing and planning. From global conglomerates to small mom-and-pop stores, each business needs timely assistance and accurate financial advice.
For large companies, hiring a CFO or having an in-house accounting team is the solution. These experts help a company with everything related to the finances, from filling out payroll to filing taxes.
But what about smaller companies who may not be able to afford a full-time CFO? For these groups, hiring a virtual CFO has become a popular trend.
How a Virtual CFO Works
What do Virtual CFOs Do?
A virtual CFO is someone who has all the necessary training and experience to handle accounting and financial issues, except they work for a company remotely.
Essentially, a virtual CFO is an outsourced accountant who takes care of all the responsibilities of an in-house CFO without being actually hired by the company. A virtual CFO is basically a contractor who take care of all the various financial tasks, including taxes, forecasting, budgeting, and providing financial advice.
A virtual CFO is certainly not a software program installed into a computer. It’s a real person providing real services.
Bookkeepers are a vital resource for many small to medium-sized businesses who don’t have an in-house accounting department or an on-staff CFO. These individuals offer basic accounting services like payroll and tax preparation, but a virtual CFO does more. A virtual CFO gives companies a deeper level of service that can include financial reporting, advisory services, long and short-term forecasts, and they will often help businesses define goals and make long-range plans.
Less Costly than On-Staff Accountants
Here is something that compels every business owner and manager: saving money. In general, a virtual CFO will be much more affordable than hiring an accountant to operate as your CFO. Businesses that choose a virtual CFO will not have to pay full-time salaries, create working space, or even go through the drawn-out process of finding a candidate. Of course, for many companies a full-time, on-site CFO is the right choice, but business owners who don’t need a dedicated accountant on a 40-hour-a-week basis will probably find the virtual route more to their liking.
Your Financial Communicator
Virtual CFOs speak the financial language. When it comes to money, many business owners struggle to properly communicate with banks, lawyers, vendors, insurance agents, and other groups of people. A virtual CFO, however, will have the training and experience to act as a liaison. Business owners and managers who feel intimidated or simply don’t like talking finances can have their virtual CFO talk for them.
Want to learn more about the benefits of a virtual CFO? At ZenFinance we’d love to chat with you to help you decide whether or not a virtual CFO would be right for you.