Virtual CFO Advantages

Being a start-up owner, you have bookkeepers and accountants to maintain your day-to-day accounts. But can they analyze the financial data and foresee the future health of your business? Can they make decisions that can help you to achieve your goals? 

You need an experienced CFO who can do the job. 

If you’re a start-up or an SME, then hiring a qualified and experienced CFO is very pricy. But then how do you draft an effective financial plan for your business, and how do you make informed decisions to take your business to the next level? 

A virtual CFO! Yes, virtual CFOs are serving 1000s of start-ups and SMEs, today, without burning a hole in their pockets. 

Who is a CFO?

The CFO is basically a qualified person who acts as a financial overseer, compliance consultant, and business advisor to a company. On the other hand, a virtual CFO is someone who’ll work for a company either part-time or full-time based on certain requirements.  

Though the CFO will be in charge of a company’s finances, they are not responsible for the day-to-day accounting functions of that company. An accountant or a bookkeeper handles all the accounting operation and keeps the books up-to-date. However, the CFO coordinates with the accounting staff to come up with strategic business plans. As such, the CFO is solely responsible for running a business without getting hit in the long run.

What are the Main Objectives of a Virtual CFO?

In a nutshell, the main goal of a virtual CFO is to:

  1. Thoroughly review the business performance and provide a complete assessment.
  2. Furnish decision makers with a detailed report of proposed changes in the business plan.
  3. Help the company build and implement best practices in terms of business plan, target setting, strategic planning, budgeting, etc.
  4. Help business owners make good and informed decisions for the betterment of the company. 

Why Should You Consider Hiring a Virtual CFO?

Save Money:

Cash flow is a common problem faced by almost all SMEs and start-ups. With the rise in global competition, it’s very important that a business invests more on expenses that will help it grow. On the other hand, it’s also important to keep staffing costs under control as payroll expenses can blow up the budget. 

With a virtual CFO, you can get the knowledge and expertise that your business needs at a minimal cost. Unlike a full-time employee, a virtual CFO is less expensive and doesn’t require benefits or bonuses. The pricing for the virtual CFO will be based only on the amount of deliverables and time that your company needs. This allows you to decide on how and when you want to hire one for your business. 

Expertise in Business Strategy:

An effective business plan and strategy are the two main aspects of a business. As previously mentioned, the role and responsibility of a CFO goes far beyond that of a bookkeeper or an accountant. The CFO is fully responsible when it comes to setting up guidelines for various functions such as fundraising, budgeting, cash flow management, generating and formulating financial reports, risk mitigation, and so forth. 

A virtual CFO will help you identify gaps in both the business and the market and come up with strategic advice to either fill the gap or take advantage of it. Their expert advice will help both start-ups and small businesses survive and eventually expand in the long run. 

Make Informed Decisions:

Financial analysis and planning is the key to business growth. With proper financial analysis, the business owners or decision makers will have a much easier way of planning for the future. The CFO’s financial results are essential in making strategic and operational decisions. 

Specific to Your Industry Type:

When a CFO has experience in multiple industries, it is an added advantage for a business as it provides a scope for multilayered networks and insights. We at DERAVIA & CO. understand your business requirement and assign a CFO to accurately handle your financial operations. Be it a person with expertise in a specific industry or a person with exposure to multiple industries, we prioritize your needs and act accordingly.  

What do You get From DERAVIA & CO.?

See for yourself how you can save time and money simply by not hiring and experimenting on different CFO’s for your company. Here at DERAVIA & CO., we give you the best of both worlds—cost-effective and expert, strategic financial planning. We’ve spent more time in building relationships with proven CFOs who are skilled at identifying opportunities and coming up with financial strategies to take your business to the next level. 

If you’re a start-up and wondering what to do next, call DERAVIA & CO. today. As always, we will be happy to lead you to the right path.