There is a skyrocketing need for virtual (outsourced) CFOs in businesses across the globe—and for good reason. Every business needs a solid financial plan, but not every business can afford a full-time CFO to organize one for them. Fortunately, virtual CFOs are bridging the gap between financial literacy and affordability.
So let’s take a closer look at what an outsourced CFO does for companies and how yours can benefit from using one.
- CFOs Support a CEO’s Vision
CEOs and executive teams are the visionaries of the company. They aim for ambitious goals, create business strategies to achieve them, and motivate their employees to work to meet all of those goals.
Companies need that artistic vision, which is why the role of a CEO or business owner is so essential. However, companies also need a dose of financial realism to make these goals a reality. That’s where CFOs shine brightest.
Working alongside CEOs, a CFO will have an in-depth understanding of the company’s strategy. CFOs can then take that strategy and establish measurable, achievable financial benchmarks. They’ll help answer questions like:
- How much capital must the company generate?
- Where can the company invest its money to produce the greatest ROI?
- What financial blindspots are in this current plan?
Essentially, CFOs will work with CEOs to make their business decisions financially viable and conducive to long-term growth.
- CFOs Bring Years of Industry Experience
When you hire an experienced CFO, you benefit from their years of experience in growing successful businesses. They’ve seen what works and what doesn’t and will apply that knowledge to your business.
This experience is multiplied when you hire from virtual CFO services. Most virtual CFOs have worked in a wide variety of industries, meaning they know how the same financial strategies can apply to a vast array of scenarios. They’ll pull from this experience to prioritize the best financial tactics for your company’s strategies.
- CFOs Can Mentor Your Financial Team
A CFO’s experience can lend itself in another way—they can offer mentoring to your financial team. This is particularly helpful for financial teams with book smarts but lacks the industry experience to apply their knowledge.
3 Ways Virtual CFOs Add Value to Companies
Admittedly, most of the perks we’ve listed up to this point apply to both in-house CFOs and virtual CFOs. That’s because, for the most part, their responsibilities are very similar. But there are a few unique benefits of employing an outsourced CFO service:
- Cost-effective expert services: Hiring a full-time CFO usually means adding a salaried position to your payroll. While every business needs a detailed financial strategy, not every business has the budget to justify hiring a full-time CFO. Using a virtual CFO allows your organization to access high-level financial planning expertise at a fraction of the cost.
- Flex to your business needs: Outsourced CFOs will only work when you need them to, whether that’s a full 40-hour workweek or a few hours here and there. So unless you have a project that needs their attention, you can spend your money hiring other important roles.
- No risk of hiring the wrong person: Many employers are looking for two things when searching for the perfect hire: cultural fit and experience. Experience is guaranteed with outsourced CFOs. Meanwhile, a CFO’s cultural fit is just as important as the experience they bring to the table. There’s no need to worry with an outsourced CFO—their remote and temporary schedule won’t affect the company culture, so there’s less risk.
Virtual CFOs Help Your Business Grow
It’s a no-brainer—outsourced CFOs are a must for small and growing businesses. Want more info about how they can help? Check out Amplēo’s article on the full advantages of hiring an outsourced CFO.
It’s a no-brainer—outsourced CFOs are a must for small and growing businesses. If you’re trying to position your business for sustainable growth, consider what an outsourced CFO can do for you.