CFOs are Not just for the Big Guys
Affordable Expertise On-Demand
Are CFOs Unaffordable?
Most small companies think they can’t afford a Chief Financial Officer (CFO), and that is almost certainly true if you’re discussing engaging a professional that typically earns a six or seven digit salary.
You could attempt to rely on MBAs or Chief Accountants, as small or even medium-sized companies do, but you must remember that a CFO is not just a glorified accountant. Their responsibilities are both broad and diverse, integrating information from all over the company. They have to answer important questions and stay goal-focused, so that the company will grow. These might include:
- Who should we advertise our products & services to?
- Should we sell our delinquent accounts to a collection agency for 20% gross worth, or negotiate incentives to encourage higher percentage payments?
- What is the best way to acquire company “ABC”?
- Where do we buy land for the new facility?
- When is the best time for an IPO offering?
- How do we leverage our tax concessions?
- Should we preserve our depreciation claims for next year when business returns will be much higher?
There is no doubt that the advice of a full C-suite would benefit most companies, but in many instances it would be referred to as “overkill”. If you could have just one CxO from that C-suite, the single most useful one would be the CFO.
For all intents and purposes, the owner is the one with a vision—an ultimate direction for the company. S/he would be the CEO in this scenario, but the individual with the most experience and useful information to contribute, to steer the company in a growth direction, would undoubtedly be the Chief Financial Officer.
The CFO has decades of experience, and understands the nuances of money markets, and that investment are in a constant state of flux. A qualified CFO, who earns millions of dollars per year in order to make companies rich, won’t be outguessed by an MBA or Chief Accountant.
The CFO is a knowledgeable expert with an extensive career devoted to recognising or creating opportunities to make money. They also analyse ongoing processes to identify practices or decisions that are leading the business astray; their experience lets them see company-destroying problems weeks or months before they become obvious to the ordinary worker.
What Does a CFO Do?
Your virtual CFO is someone who provides actionable strategic advice, precisely when you need it! All of our CFOs are professionals, including Chartered Accountants, Financial Analysts, and Financial Experts who have all worked alongside Multinational Corporations.
They can identify financial chokepoints such as credit overextensions, slow payers, delinquent accounts, or other impediments to good cash flow. Commerce is about the exchange of money; it must flow in order to pay for day-to-day operations—and your virtual CFO will get you back on track.
Growing Your Business
If you’re looking at a merger, expansion, or consolidation, your virtual CFO can help you figure out the best financing. Growth funding can derive from new IPOs, borrowing, divestitures, stock issues, investments, or numerous alternatives. What’s best for your business? You CFO knows.
A successful business requires reliable Reporting. This provides an intimate understanding of its current financial status. With this essential data your virtual CFO can forecast the future of your organisation; they can show you where you’re headed—and what you can expect to find upon arrival.
So Much More
There are many more subtle ways in which a virtual CFO contributes. S/he can prepare financial reports, guide outsourcing decisions, manage budgeting and forecasts, participate in Board activities, and create management policies. S/he can perform system, procedural, and personnel reporting, create cash flow evaluations, and prepare suitable recommendations.
Advice on acquisition management, strategic planning, and asset divestiture can all contribute to increasing your bottom line. Your virtual CFO can even act as your Liaison Officer to communicate with investors, which is often considered part of a CFO’s purpose.
How Does CFO Outsourcing Work?
Our CFOs bring worldwide experience from numerous markets. They have worked in different jurisdictions, and understand financial outlooks that are poles apart. Whatever your aims and goals, they can show you which hoops you need to jump through in order to achieve them. They are conversant with different laws and regulations from all over the world. All this experience leads to you, in your specific situation, having the information and insight needed to fill all your business decision-making with sound financial practices.
Your virtual CFO helps you to eliminate business risks while teaching you how to be more efficient, competitive, and productive. S/he shows you how to identify the best aspects of your development ideas, and then how to implement them for the best chance of success. S/he can spot the opportunities for maximizing profits while minimizing risks and costs.
Economy and Convenience
The best part is that all this comes to you with the, affordability and reliability of online Virtual CFO services. Our CFOs are available 24/7/365, in any time zone.
It all comes via access to our Cisco Online Video Conferencing Software—it’s just like being there! If you have an internet connection, you can speak face-to-face on your desktop, laptop, tablet, or even a smartphone.
When you need your CFO to address a meeting, big or small, use our teleconferencing software and a big screen or projector to let all your board members, investors, or stakeholders see! That is the power of the modern internet—now so reliable and fast that speaking to someone on the other side of the world happens with virtually no delay.
What was formerly limited to very wealthy companies is now available to medium and even small businesses. You can have access to a professional, top-ranked CFO, on an as-needed basis, at just a tiny fraction of the cost of a fulltime executive.
The playing field is much more level nowadays, and you don’t need to settle for second best—you can have the same advantages as the major players when you need sound financial advice. Give us a call today, and let us tell you more about how a Virtual CFO can pur you on par with your largest competitors.