A ‘Virtual CFO’ service is now available to smaller businesses and it doesn’t come with the high wage cost of employing a full time CFO. Bigger businesses have had the benefit of a financial and ‘logical’ thinker in their businesses to guide them to better profit, cash flow and business value.
Most business owners didn’t go into business to become an accountant. However, they need a good understanding of how the numbers work and how to drive better business performance. They need a ‘financial co-pilot’ to work alongside them closely to guide the business in the right direction. A ‘Virtual CFO’ fills the gap between an external tax accountant and a bookkeeper.
Here are some ways a ‘Virtual CFO’ can pay for themselves… way beyond their cost and help you grow your business.
- Discuss and decide your ‘big picture’ goals… what you want to achieve in your business in terms of business growth, improved profit, cash flow, business value, efficiency and lifestyle.
- Discuss and set targets for specific parts of the business i.e. KPIs (Key Performance Indicators).
- Review and reorganise management structure and team to align with business goals and targets.
- Discuss profit improvement opportunities including outsourcing any ‘non-core’ activities.
- Help you to manage Cash Flow to avoid running out of cash and enabling you to achieve sustainable business growth.
- Implement ‘best practice’ financial management processes and systems to ensure accurate, timely information you and lenders/investors can rely on.
- Plan and implement business transformation projects with your team.
- Review ‘Risk Management’ and “Governance’ i.e. how the business is set up and fulfils its legal obligations to all stakeholders to avoid disasters and costly mistakes.
- Help with managing relationships with bankers, accountants, legal advisors, insurance providers etc.
- Review your business finance to ensure you’ve got the best and most cost-effective funding in place. They will help you with finance applications and preparing ‘business cases’ to secure funding. This is one of the most valuable areas of help a Virtual CFO can provide, to ensure you get the growth funding required at the right price.
- Attend regular meetings to review reports and discuss performance, targets and further improvement actions and opportunities. Being a ‘sounding board’ for your ideas and aspirations.
- Review your strategic direction to ensure it’s in line with your objectives and review options.
- Assist you to prepare a short and long term Business Plan, Budget and Cash Flow Projection.
- Assist you to plan for your exit and succession and build business value to ensure an acceptable sale price.
Growth & Development
- Discuss your ideas for new products/services and markets.
- Assist you to work out the cost of and help you to implement business expansion plans.
- If you plan to merge your business or acquire another business, performing ‘Due Diligence’ to ensure it’s a profit and value building option.
- Train, coach, mentor and develop your finance team, to ensure things are done right and you can rely on the information provided.
Cost of your VCFO
- Agree a ‘value-based’ fee with your VCFO ensuring it is far outweighed by the value they deliver to your profit, cash flow, business value and lifestyle.