Now more than ever, startups and corporates are looking for ways to run lean. There is pressure to make cuts to staff and outsource when possible, and this has led to a trend of hiring virtual CFO services over the more traditional in-house full-time CFO.

You, your board and your investors are probably asking some questions like…

• How do we run on as little executive overhead as possible without missing out on making the right decisions?
• What services do virtual CFOs offer and what will we need to find elsewhere?
• Does working with a virtual CFO actually happen? How often will they be available? How will they deliver reports?
• And, of course, How much do part-time CFOs cost in 2021?

In this post, we’ll cover some of the basics of working with a virtual CFO and provide you with some resources for the next step in your decision-making process.

WHAT DO VIRTUAL CFO SERVICES OFFER?

We’ll go over more of these specific delivery options in the following sections however, let’s begin with some of the more general advantages of using virtual CFO services.

• A CFO can identify and manage bookkeeper/controller to produce reliable data and interpret the results, providing insight to help steer the ship toward your stated goals. As a result, you know precisely what time, where and what to direct on your team as well as communicate with your stakeholders.
• A CFO is an important guide, sounding board, or guide. Find a veteran who you can trust not just someone who fills the role. At the end of the day, you’ll be able to count on an employee who understands your business and will ensure that you are accountable as you strive to achieve clearly defined objectives.
• A CFO could position his or her finance department as an advantage in the market. If you’re struggling financially, you’re likely to find that your competition is too, however they’re likely not following this article and searching for solutions. A seasoned CFO can help you reduce the waste, make use of cash more efficiently and discover opportunities for increased productivity or growth. With their assistance you will be able to stay ahead of other companies in your field.

Alongside these generalized items Virtual outsourcing CFO services generally provide:

• Find the most important metrics and plan out the reports to track
• Analyze financial results on regularly
• Control the annual budgeting process Develop the annual strategy
• Management of cash and planning
• Strategic planning

Virtual CFO service options include:

• Fundraising. Virtual CFOs could be the ones to create the financial story, and are able to perform a little pitching however don’t anticipate them to spend six months flying around making pitches to VCs or banks across the nation.
• Control the IT systems that are related to finance. Don’t think that the virtual CFO will supervise IT staff, the corporate network, internet access and security, as well as CRM/ERP systems.
• Take part in Board meetings. Virtual CFOs are able to prepare and guide the CEO, and may be asked to participation in meetings.
• Acquisitions and mergers. The majority of the time, this is assistance with analysis and advisory however do not expect the company to undertake a lengthy due diligence project at in a flash.

Your company may not be in dire need of these services right now however, if you’re or expect to be in need it is advisable to inquire about these options prior to the time of need.

Be aware that certain virtual CFO solutions combine CFO-specific insights, controller and bookkeeping in essence, providing an outsourcing of the financial department. If your service provider provides virtual CFO services on a standalone option, keep in mind that you won’t be receiving:

• Improved workflow
• Classification and entry of transactions (recall the old garbage-in-garbage-out”)
• Accounts payable
• Accounts payable
• Payroll
• Bank account reconciliation
• CPA assistance for tax year-end and audit
• Implementation of financial control and oversight

At Fin-eX Outsourcing, we provide virtual CFO services according to your need and requirements.

Learn more about how our virtual CFO services can help you build meaningful enterprise value here.

Final thought

By outsourcing your entire finance team to Fin-eX Outsourcing. You can hit the ground at full throttle and lean on us to scale as you grow.

With outsourced CFO services from Fin-eX, you’ll get everything you need, from Bookkeeping, to Controller-level ownership, to CFO-level strategy. We have the seasoned team and well-oiled machine in place to deliver results right out of the gate.