Virtual CFO

What is a virtual CFO?

The Virtual CFO is a relatively new concept. It's a way for small businesses to get CFO support that they wouldn't have been able to afford previously.

Small businesses that hire a Virtual CFO get access to an experienced financial professional at a fraction of the cost of a full-time CFO. The services will differ from firm to firm, but usually a Virtual CFO will:

• Handle all the duties of a traditional CFO, but work remotely and on a part-time basis.
• Monitor the financial health and well-being of the business, usually with cloud technology.
• Offer financial insight and guidance on all company decisions and issues.
• Provide back-office functions such as managing accounts ledgers, depending on the client and their needs.

Advantages for small businesses

Having access to a Virtual CFO can be a big benefit for a small business. Most of them can't afford an experienced, knowledgeable CFO on a full-time basis and may never consider hiring one.
That's a problem, because many small businesses 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.

What’s the difference between an accountant and a CFO?

An accountant will:

• Maintain profit and loss records
• Ensure your business remains compliant with financial regulations and tax
• Check the accuracy of important financial documents
• Help you plan your business, identify and assess costs, and structure accordingly.

A CFO will:

• Monitor the financial health and well-being of your business
• Offer financial insight and guidance on all company decisions and issues
• Provide back-office functions such as managing accounts ledgers, depending on your needs
• Create budgets and forecasts.
• Pinpoint problem spending by highlighting trends in the market

Ask us how our CFO services can benefit your business on 021 225 6425 or email.