Business owners are amazing. They do literally everything… but should they? Take the case of this multi-talented business owner:
Emma operates a small business in Robina. She does the sales and marketing, takes care of administrative affairs, and crunches the firm’s finances. She can stretch herself, sometimes even beyond the max, but Emma soon struggled.
She could not keep up with the demands of her business and couldn’t give each task the proper attention. Her sales and marketing efforts suffered. Her administrative tasks fell behind. This led to customer complaints, missed deadlines, and even a few lost clients
Too overwhelmed to do CFO tasks
Problems escalated, but Emma persevered. She worked even longer hours, sacrificing time with her family and friends. She was exhausted, stressed, and on the verge of burnout. She knew she needed help but didn’t know where to turn.
That’s how some small business owners struggle. After all, hiring an in-house chief financial officer can be costly… and that’s where the virtual CFO can step in.
Virtual CFO to the rescue
A virtual CFO provides financial management services to businesses on an as-needed basis. They can offer expert advice and support to help businesses achieve their financial goals. Here’s why a virtual CFO is a must for every business:
A virtual CFO can manage a business’ finances better than a CEO or business owner.
Some business owners may feel they can manage financial management on their own, perhaps not realising the following:
Specialised Expertise: A virtual CFO is a financial specialist with years of experience managing the finances of various businesses, while a CEO may not have the same level of financial expertise.
Focused Attention: CEOs are responsible for managing many different aspects of their business, while a virtual CFO can focus solely on financial management and dedicate undivided attention to managing a company’s finances.
Objectivity: A virtual CFO can bring an objective perspective to financial management and is not emotionally invested in specific outcomes; a business owner may have inherent biases in making financial decisions.
With a virtual CFO, the business owner can focus on the most critical aspects of the business.
A virtual CFO knows as much about taxes, finances, and audits as an in-house CFO.
Having a virtual CFO can be just as effective as hiring a full-time CFO.
Both have a deep understanding of taxes, which can save you money and avoid costly penalties or audits. A virtual CFO can help you navigate the complex world of tax planning and compliance. They also stay updated on the latest tax regulations, take advantage of tax incentives and deductions, and ensure compliance with tax laws and regulations.
A virtual CFO is also well-versed in managing a company’s finances. They can help businesses create budgets, forecasts, and financial reports, while also providing insight and guidance on how to improve cash flow, reduce expenses, and maximise profits.
A virtual CFO can provide valuable support when it comes to audits just as an in-house CFO can. They can equally:
- help prepare for an audit by ensuring that all financial records are accurate and up to date,
- guide you throughout the audit process to minimise the risk of penalties or fines, and
- help identify areas for improvement in their financial management processes.
Just a bit of difference between a virtual CFO and an in-house CFO could be…
A virtual CFO is less expensive than an in-house CFO.
Hiring a full-time CEO can be expensive especially for small businesses. A virtual CFO can provide similar expert financial management services on an as-needed basis, making it more cost-effective.
An in-house CFO is typically a high-level executive who requires a significant compensation package (a six-figure salary, bonuses, benefits, and other perks). In contrast, a virtual CFO does not require a full-time salary and benefits package.
CMA Exam Academy estimated that the salary of a full-time CFO can go more than three times the cost of a virtual CFO. That does not yet include expenses for an in-house CFO’s office space, equipment, and other resources, whereas a virtual CFO can work remotely and use their own equipment.
Now you might wonder…
What happened to Emma?
Desperate and nearing burnout, Emma searched for workable solutions online. She found and read an article called “Why Every Business Needs Virtual CFO Services.”
She understood that:
- A virtual CFO can manage a business’ finances better than she did.
- A virtual CFO knows as much about taxes, finances, and audits as an in-house CFO.
- A virtual CFO is less expensive than an in-house CFO – and surely less expensive losing clients and, possibly, her entire business.
Emma would contact the virtual CFO service. They would start to work on getting her business back on track.
Do you need virtual CFO services?
Don’t wait for your business’ breaking point. Get in touch ASAP with a virtual CFO provider like Wear Accountants, who can help with your:
- financial analysis and review,
- calculating your break-even point,
- preparing budgets and forecasts,
- cash flow forecast and management,
- monthly or quarterly financial reporting and analysis, and
- monthly or quarterly management meeting.