Every small business can benefit from the dedicated financial management expertise that comes with having a CFO. However, very few small businesses have the means to hire someone full time for this role, particularly in the lean early years. Often, it’s the first few years when a company is starting up that establishing good habits around managing financial resources is so important. Over time these habits can even make or break a business.
Hiring virtual CFO services is an affordable option for business owners who recognize the need for a financial expert with small business experience. Virtual CFOs provide top level advice just when you need it, offering incredible value and cost savings to companies focused on growth and long-term success.
Here’s why your small business might want to consider the benefits of working with a virtual CFO.
High level decision making
A virtual CFO can analyze your company finances and provide expert advice to help you make more informed, strategic decisions for ongoing profitability. That senior level financial oversight can help you understand any risks or weak spots, identify opportunities, and create a realistic and actionable business plan that steers the company precisely where you want it to go.
Forecasting
Your business is an asset that needs protection from any potential risk that may threaten its ongoing success. Strategically forecasting can help you plan for the future, leverage profitable services, identify potential financial issues, and focus on achieving business goals. Setting business goals is an important part of a successful business and forecasting can ensure you are tracking with those goals. Think of forecasting as a detailed roadmap to your destination. It can identify the optimal route to achieving business goals and avoiding potential roadblocks to success along the way.
Every successful business must be forecasting to plan for future success. Most small business owners do not have the time or knowledge to preform advanced forecasting. Especially, as the business grows in complexity. Hence, working with a virtual CFO gives owners access to the professional team experienced in all levels of forecasting.
Liguori Accounting leverages advanced forecasting tools like Fathom and traditional tools like Microsoft Excel to create custom projections for our clients in an easy-to-read format.
Raising business capital
Finding access to funding is important when it’s time to scale your business, expand operations, launch a new product or service, or invest in a new joint venture. A virtual CFO can suggest the best ways to raise funds, whether that might be seeking venture capital, business loans, industry grants, or crowdfunding. A virtual CFO can also help fine tune your budget to discover ways to cut costs and spend money more wisely.
Facilitating change
When a business is in a transition period, it’s valuable to have a part time senior-level manager overseeing the numbers to measure and assess long and short-term business performance. If the business is in flux and finds itself in a negative cash-flow position, your virtual CFO can quickly help you determine the key factors and take immediate action to correct.
A custom fit for your business
When you hire a virtual CFO, you decide how often their services are required and only pay for the services you need. Staying on top of your company’s financial management is a struggle for many small business owners, who spend much of their time attending to customers and profit-generating activities.
Final thoughts
Hiring a virtual CFO can provide your business with the financial expertise necessary to be successful. Our virtual CFO services have helped businesses better manage their finances and achieve strategic goals. Working with a professional team who provides accounting, bookkeeping, and virtual CFO services can help owners better manage the most important aspects of their business for ongoing growth.
Learn more about our virtual CFO services here.