virtual CFO services

Virtual CFO services

What is a Virtual CFO?

A Virtual CFO stands for virtual chief financial officer. A virtual CFO is an outsourced service provider offering high skill assistance in the financial requirements of an organisation, just like a chief financial officer does for large organisations. A Virtual CFO may be a single person or an entity.

What does a Virtual CFO do?

Small businesses that hire a Virtual CFO get access to an experienced financial professional at a fraction of the cost of a full-time CFO. Virtual CFO services will differ from firm to firm, but usually, a Virtual CFO will:

  • Handle all the duties of a traditional CFO but work remotely and on a part-time basis
  • Monitor the financial health and well-being of the business, usually with cloud technology
  • Offer financial reporting/financial statements and guidance on all company decisions and issues
  • Provide back-office functions such as managing accounts ledgers, depending on the client and their needs.
  • At Elite Business Accounting we can offer Virtual CFO services to a number of different clients.
Virtual CFO

Advantages of hiring a Virtual CFO

Having access to a Virtual CFO service can be of significant benefit for a small business. Many can’t afford an experienced, knowledgeable CFO on a full-time basis and may never consider hiring a financial expert.

That’s a problem because many small businesses fail within the first three years. Reasons include failure to set themselves apart from the competition and an inability to find a profitable business model or undertake any financial analysis. With an accounting professional acting as their Virtual CFO, they could keep their financial goals and realities clearly in sight.

A Virtual CFO is an affordable alternative to hiring a full-time CFO and can make a big difference to a small business by:

  • Creating budgets and financial forecasting
  • Pinpointing problem spending by highlighting trends in the market
  • Validating or discouraging business decisions with financial well-being in mind.

These are abilities that the vast majority of business owners don’t possess – but they often need them to succeed.

With a combination of practice knowledge, cloud-based accounting software, mobile technology and modern data analytics, our Virtual CFO services greatly benefit our clients.

Does your business need a Virtual CFO?

If you’re running a small business, you might be wondering if you require the service of a Virtual CFO.

Here are some key signs to look out for:

You need better insights to make better decisions

Data-driven decision-making is essential – and CFOs have the expertise to make these informed choices. After all, trusting your gut is high risk and can have unfortunate consequences. At worst, you can lose serious amounts of money; at best, you’ll fail to unlock the true value of some of your decisions.

It becomes all too easy to focus on what has happened rather than what could happen in the future – making it equally easy to miss the corrective actions that could align performance with strategic objectives.

Transparency and insight are key to making confident, responsible, and proactive (rather than reactive) choices. Virtual CFOs are often experienced accountants and can solve this problem by giving businesses clarity around their finances: helping them make sound, rational decisions.

If you’re struggling to make the right calls, or if you don’t have the information to do so, a Virtual CFO can help remove some of the fog around your numbers. They can deliver meaningful insights into the trends affecting your business – and the opportunities that could be available to it.

You’re struggling to budget and forecast appropriately

This is a huge issue for startups and high-growth SMEs – especially those looking for that all-important next round of funding. You need to prove to your investors that you’re on firm financial ground, which means demonstrating a solid grasp of your budget, goals, and forecasting.

Your small business is no doubt full of brilliant people. But they probably do not have expertise in financial planning. A permanent CFO might not be a hire you can make right now – but through an accounting firm, a Virtual CFO can provide essential longer-term forecasting and analysis.

You’re growing – but your processes aren’t

The bigger you get, the more complicated financial processes can become. At the most fundamental level, the busier your business is, the harder it is to dedicate time to managing finances. Yet, a growing number of employees, agencies, vendors, clients, and other components of managing your books can make the process of getting your accounts in order exponentially more difficult.

This is especially true if you’re using manual processes or your financial technology isn’t particularly scalable.

So, if your bookkeeper alone can’t handle it, a Virtual CFO probably can. Again, as experienced accountants, they can provide much-needed advice on investing in a technology setup that can support growth – helping you navigate periods of substantial expansion with systems that can bear the weight of your new requirements.

You’re spending, but you don’t know how you’re spending

It’s depressingly simple for expenses to spiral out of control: when employees claim more than they should, it adversely affects your finances; when they claim less than they should, it affects their morale and financial wellbeing.

This can only be avoided with clear policies around expense management and spending, which, in turn, requires scrutiny, control, and visibility into incomings and outgoings. Your team should feel empowered to spend when they need to – but with the proper limits in place to ensure that they’re doing so within the company’s means.

This spending can sometimes spiral out of control to the point where businesses can struggle to maintain profitability without quite knowing why.

By contrast, if you can’t empower your employees to spend, you can actually stifle growth: when budgets are throttled, staff can’t buy what they need to maximise revenue-generating activities.

A virtual CFO can help solve these problems by advising on measures, financial reporting and technologies to put in place to prevent these issues – as well as creating best practices for how to spend which funds properly.

How does a Virtual CFO service work?

A Virtual CFO will work with you on a part-time basis to ensure the efficient financial management of your business. They’ll want to establish a long term relationship and learn more about your business.

At Elite Business Accounting, we’ll take the time to understand your concerns, identify key metrics to help with your strategic planning and take the stress out of necessary processes like tax returns and cash management.

If you’re unsure how a Virtual CFO could benefit your business, why not contact us today to discuss exactly how we could work with you?

We have experience working with hundreds of small and medium enterprises, many in the creative industry, meaning we have in-depth knowledge to draw on.

Why do I need a Virtual CFO?

Having a Virtual CFO will help you stay one step ahead without recruiting a full-time employee to the role in-house. You can go into board meetings feeling confident you have evidence of your financial results, instant access to your financial information via cloud-based technology and have an excellent starting point for conversations surrounding future business plans.

From company cash flow to key metrics, you’ll have access to both reliable data and a financial expert whenever you need it to aid informed decisions and future growth.

How Elite Business Accounting can help you and your business

Here at Elite, we offer virtual financial support to our clients so that they can build a more profitable business with the support of a Virtual CFO at a fraction of the cost of a full-time CFO.

By working closely with their clients, our experts are able to understand & monitor their businesses and what targets they wish to achieve. For example, if you’d like more cash in the bank, we can agree on a strategic plan to reach those goals quickly & efficiently.

So, if you would like to streamline your business, be more profitable and have more leisure time to enjoy – contact us at Elite for more information about our Virtual CFO service. It will be one of many sound business decisions to come.

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