What is a Virtual CFO and What Do They Do? (Chief Financial Officer)

As a business owner, you know the importance of having a strong financial foundation. You have a vision for your company and are doing everything you can to turn it into reality. However, there’s one aspect of running your business that most people don’t think about—the money part! That’s why we’ve put together this guide to help you learn about virtual CFO services.

THE ROLE OF A CHIEF FINANCIAL OFFICER

A Chief Financial Officer (CFO) is a senior executive who oversees the financial operations of a company. The CFO is responsible for all financial decisions, including budgeting and forecasting, calculating cash flow and analyzing balance sheets.

The role of a CFO can vary greatly depending on the size and scope of the business. In small companies with less than $1 million in revenues per year, there may be multiple people performing accounting duties as well as other administrative roles such as payroll supervisor or human resources manager. On the other hand, large publicly traded companies usually have one or two full-time Chief Financial Officers who are responsible for handling all finance-related functions alone

WHERE A VIRTUAL CFO STEPS IN

• Provide financial guidance. A virtual CFO can help you make sure your business is on track with its financial goals and obligations, as well as make sure that the company is meeting its tax obligations, regulatory obligations, and financial reporting obligations.

• Manage the company’s finances. A virtual CFO can help manage a company’s day-to-day finances by handling tasks like accounting and bookkeeping, payroll processing, budgeting and forecasting—all while working remotely with minimal oversight from you (or your actual CFO)

WHAT IS INCLUDED IN VIRTUAL CFO SERVICES?

• Financial planning

• Budgeting

• Tax preparation

• Accounting and bookkeeping services

• Risk management (including insurance, compliance and fraud prevention)

• Cash flow management, forecasting and reporting

WHO DOES A VIRTUAL CFO WORK WITH?

A virtual CFO works with the CEO and CFO, as well as the board of directors. They also work with the finance team, finance department, accounting department and other departments that are involved in managing a company’s finances.

The role of a virtual CFO can vary greatly depending on what type of business you have and how many employees you have. The more employees your company has, the more complex your financial matters will be—and therefore the more likely it is that you will benefit from hiring a professional to manage them all for you.

A VIRTUAL CHIEF FINANCIAL OFFICER CAN HELP YOUR BUSINESS BOOST ITS FINANCIAL HEALTH.

A virtual chief financial officer is a professional who provides business owners with much of the same advice and guidance you would expect from a traditional CFO. The main difference between the two? Virtual CFOs work remotely, which allows them to charge lower rates than their in-office counterparts.

There are a number of reasons why this type of service can be beneficial for your company:

• A virtual CFO can help your business boost its financial health by helping you make more informed decisions about investments, expenses and cash flow management.

• Because they don’t have an office location or travel costs associated with working from home, these types of professionals tend to charge less than those who do have these expenses associated with their job descriptions.

TAKEAWAY

If you’re interested in hiring a virtual CFO, there are many options available. You can find one through a job board like Monster or LinkedIn, or on a freelance site like Upwork. There are also some companies that specialize in providing this type of service and have a large network of professionals they trust (they might even have clients who already hired virtual CFOs). If you need help finding the right person for your business, give us a call! We’ll be happy to assist with all aspects of finding and hiring someone who will work well with your company needs