As the name suggests a virtual CFO is a Chief Financial Officer who is available to your business remotely through phone calls and video conferences, and usually on a part-time basis.
A virtual CFO will be highly skilled at analysing your business results because they will have had experience in dealing with a wide range of businesses and at any stage of your business life cycle, they will be able to give you the financial insight to make the right decision(s). Typically over time they will get to know your business inside and out and will use a variety of benchmarks to monitor your overall business performance.
Unfortunately, many small businesses never consider hiring a Virtual CFO. That’s a problem, because many of them fail within the first three years. Reasons include failure to set themselves apart from the competition, and an inability to find a profitable business model. With an accounting professional acting as their Virtual CFO, they could keep their financial goals and realities clearly in sight.
A Virtual CFO can make a big difference to a small business, by:
Creating budgets and forecasts.
Pinpointing problem spending by highlighting trends in the market.
Validating or discouraging business decisions with financial well-being in mind.