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- What is an outsourced CFO, and when should I hire one?
What is an outsourced CFO, and when should I hire one?
A chief financial officer is a crucial component of any small business or startup, as they play a key role in maximizing margins and ensuring all financial responsibilities are satisfied. While building and growing a small business, however, it is not always fiscally possible to employ an experienced, in-house CFO. Virtual CFOs and online accountants are a viable option for these businesses to focus on improving and delivering their products without the stress and confusion of preparing and filing financial documents, identifying and solving discrepancies, financial planning and forecasting, or organizing payable and receivable excel sheets.
The Benefits of an External CFO
When a small business decides to hire a virtual CFO, they are hiring a remote financial officer with noteworthy experience in high-level financial tasks. Notably, a virtual CFO costs significantly lower than in-house accounting specialists as they work for multiple clients. Additionally, virtual small business CFOs often have experience with a variety of industries, both public and private, at various stages of growth and can completely take the reins in managing:
- Payables and Receivables
- Bookkeeping
- Payroll Administration
- Monthly Closes
- Budgeting and Forecasting
- Cash Flow Management
- Due Diligence Support
- Financial Reporting and Analysis
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When Should I hire an outsourced CFO
Many small businesses and startups can make simple but costly mistakes, especially in their early days. Because these financial decisions can have significant consequences without care and expertise, it is always essential to consult a professional for risk analysis and confirmation of account balances and fiscal processes before any decisions are set in stone. CFO outsourcing services may be the most viable option for a small business if they are:
- Currently growing or expanding
- Facing challenges with inefficiencies in cash flow or operational costs
- Developing capital financing strategies or struggling to find the right combination of debt and equity financing
- Analyzing current costs and pricing for areas to improve to maximize margins
- Implementing new financial, operational, or POS systems to adapt to recent growth
- Determining whether an in-house CFO will be beneficial or are in-between full-time CFOs
- Budgeting, fundraising, restructuring, or otherwise seeking financial forecasting
Contact our expert small business virtual CFOs today
At VFO, we are on a mission to relieve small business financial departments’ stress, tension, and confusion with our wide range of virtual CFO services. We are constantly evolving our systems to make our processes more efficient and better position your business with investors, suppliers, and customers. We understand that running a business requires expertise and dedication, so we are here to take the guesswork and frustration out of tedious financial processes by taking the reins of CFO services for small businesses.
Our experienced financial officers work with a diverse portfolio of clients in a broad range of industries with different goals. They are well-equipped to execute various small business accounting services, from day-to-day documentation and payroll to identifying and solving complex financial challenges. To stop fumbling through excel sheets and start focusing on the heart of your business, get in touch at support@vfo.co or schedule a free consultation online.