When you’re in the hot seat and in charge of making the best decisions for your business, do you rely heavily on intuition and gut feel? That’s fine in most cases, but what about when you need greater certainty in the financial outcome?
Let’s say you have to make decisions like:
- A new salesperson will help us sell more, but will the extra profit cover the costs?
- Should we take on that new piece of equipment? What is the cost recovery rate?
- Is my calculator estimate close to the real figure?
- What if I reduced the cost of goods sold, or the inventory, or collected debts quicker by 7 days? How much extra cash in the bank would that give me?
Perhaps you have a submission to the bank or lender and you need not just a professional presentation and accurate numbers, but a cost vs benefit or return on investment (ROI) analysis. Would you know the ratios that bankers use to justify your loan to their bosses?
Your internal bookkeeper or accountant may give you monthly totals, keep your invoices going out and provide profit and loss accounts, but can they help you make the big business-building decisions?
A Chief Financial Officer can.
But a full-time Chief Financial Officer (CFO) will cost you, with on-costs, around $150k to $180k a year. This is hard to justify as you don’t need another large cost factor.
A Virtual CFO, however, costs only when you need them, and not when you don’t!
So, what exactly is a Virtual CFO?
A good Virtual CFO is right-hand to the boss, but on the numbers side. Someone who has worked for bigger corporations, sometimes listed companies. Someone who has been the head of finance, is skilled in business numbers and knows how the numbers affect the decision-making process of department managers and the CEO.
They don’t even have to live nearby. These days it’s easier to have a sit down meeting over Skype than in person and it costs a great deal less in travel and out of office time.
Virtual CFOs are becoming more the norm for small/medium businesses for this reason. You can hire a Virtual CFO, someone who gets to know your business, helps you when you need them and the costs would be a mere fraction of hiring someone full time.
Want to find the best Virtual CFO for your business? Download our useful 18 point checklist on what to consider when engaging a part-time CFO.
The best part?
Virtual CFO services almost always pay for themselves! Want to learn more? Download our free eBook for street-smart business owners who want the best possible financial help that will pay for itself 2 to 10 times over!