The previous year proved that the future, especially from the financial aspect, can be unpredictable. As more and more people think of the prevailing advantages of moving to online work, businesses need to face the reality of hiring remote workers. Employees, especially more experienced ones, want to keep their work-life balance. So, if you are searching for a professional Chief Financial Officer (CFO), look no further than the virtual world. This article will answer the questions you might have regarding this position.
What Does a Virtual CFO Do?
Virtual CFO performs almost the same functions as the offline-world CFO would do. They are responsible for the corporate finances, meaning that they oversee and plan the company’s spendings, investments, acquisitions, compliance with tax regulations, etc. Nowadays, the CFO is responsible for the company’s success, too, as the growth of the business also depends on how it spends its revenue and income. Hence, having a professional CFO on board helps you be protected and grow financially.
Who Needs a Virtual CFO?
Pretty much every single business needs this employee for the reasons mentioned above. However, the virtual component of it would primarily benefit startups and small businesses. Such ventures usually do not have the necessary funds to hire an experienced offline CFO full-time who would work only for their business. While virtual CFOs do corporate planning and think of financial strategies, they are often engaged in basic bookkeeping and documentation at small companies.
What Benefits Will I Get if I Hire a Virtual CFO?
Small businesses and startups usually do not have employees with years of experience in the Wall-Street world. Hence, they may mistakenly think that they can manage their cash flows, income, and expenses, but later fail as they lack basic knowledge of the rules and nuances. A virtual CFO helps the company to look realistically at its cash positions and understand what to do to increase its income. The CFO works on filling in the proper documents and forecasting what would happen in your niche. Having such a professional means applying and getting investments and growing your business step by step.
Supervision of Expenses
At the early stages of having a startup, especially a successful one, the desire to spend the income is great. You may find yourself longing for things you haven’t had or that you want to buy expensive gifts for your staff. Here is where the CFO will step in. This virtual employee will oversee and create policies and rules to regulate how the money is spent. The CFO would supervise the distribution of incomes and costs so that no one would be tempted to buy anything unnecessary. As you want to grow, it is vital to allow only those purchases that would increase your productivity and outreach.
Responsible for Complex Growth
Although CFO is meant to engage with financial tasks, this employee would ensure that more complex processes are running smoothly. When your business is growing, you will jump up the ladder of corporate financing. Instead of simple income and expenses, investments, venture capital, vendors, and corporate loans would flow. The virtual CFO would ensure that all of these multi-level processes are handled with due care to maximize your benefit from them. Finally, the CFO would analyze your business to ensure that your financial position complies with the market you are covering. They would also work on repositioning your company (if necessary) to attract more customers considering your economic preconditions.
What Should I Do?
Hence, the only thing remaining is to get that experienced professional and utilize her talent to grow your business. Remember that you can’t focus on everything at once. It would be much better to have an employee strategically handling your finances.