As an accounting professional, I’m here to provide clarity on the misconception of CFOs only being for big corporations and banks. A “CFO” in this context should be thought of as a business consultant or adviser. It’s fully accepted that many small businesses can’t afford full-time CFO/C-suite and continue with this thinking that Virtual CFO’s will be too expensive, or they’re too tiny of an operation for it to matter.
The advantage here is that you can outsource your financial management to a local accounting firm (such as Solve Accounting) to receive the right advice; with no need to hire, manage, or train an in-house finance manager. The concept of a virtual CFO is a relatively new way of working which has been made possible through development and innovation of technology freeing up time for accountants to focus on providing advice and delivering value. With a virtual CFO, you have access to everything a CFO can do, but only to the extent which you require.
So, What Will You Actually Do for My Business as a Virtual CFO?
A CFO oversees all financial matters in your organisation. From a managerial standpoint, the CFO typically manages the teams in charge of operational matters such as keeping accurate, timely accounts and ensuring you meet your tax obligations and financial goals. On the strategic side, your CFO will monitor the company’s performance and provide advice to help your company meet its business goals.
As your virtual CFO, we handle all financial matters of the business to instil financial control, ensure we have a finger on the pulse when it comes to the numbers, and openly share our findings and advice with you. Services we provide and assist with include but are not limited to:
- Goals setting & implementing business strategies
- Cash flow management, budgeting, and forecasting
- Financial reporting & advisory
- Monthly performance & accountability meetings
- Systems and business process audits, including business automation services and technology
- Provide advice to improve your financial position
- Provide access to our professional network
A Virtual CFO would perform the same strategic function, but rather than joining your business as a company director, they will operate on a contractual basis with your organisation. Virtual CFO services (also known as fractional CFO or outsourced CFO services) are accessible on an affordable hourly or monthly subscription basis.
Final Thought
A “virtual CFO” or an “outsourced CFO” may be one of the most valuable assets to a small firm since it eliminates the need for extra staff while still providing all the benefits of someone with that level of financial expertise. I would love to see the government make a Virtual CFO a compulsory requirement for all business owners to have before opening their small business.
Speak with Phil Khao from Solve Accounting on 0412651779 or at philip@solveaccounting.com.au to find out more about Virtual CFO services.
Phil Khao is a Chartered Accountant (CA), Virtual CFO professional and Director at Solve Accounting with many years of accounting and business services experience at global accounting firms and multinational corporations.