While the concept is still relatively foreign within the Australian business vernacular, engaging the services of a ‘Virtual CFO’ has seen progressive SME owners experience an average profit growth of 51% over three years, according to research from executive consultancy firm CFO On-Call.
The largest virtual CFO service in Australia, CFO On-Call matches leading financial and business growth experts with SMEs on an as-needs basis, embracing a combination of remote employment and technology to handle high-level financial operations.
For just a fraction of the cost of a full-time executive salary, these experts create business strategies to increase efficiencies, output and best of all, profit – giving SME owners access to a previously unattainable level of financial guidance.
An audit of clients who regularly use CFO On-Call’s services found that, on average, their profit had increased by a staggering 51 percent between 2016 and 2018. The businesses surveyed had an average turnover of $16 million.
In comparison the businesses surveyed saw revenue increase by 15% on average over the same period. This means they achieved a much better result for a lot less effort.
Deeper analysis revealed that the positive impact of using CFO On-Call is owed to the company’s emphasis on streamlining costs and expenses.
“It’s a common misconception that growth in revenue equals the same rate of growth in profit,” said CFO On-Call Director Sue Hirst.
“In fact, many businesses actually see their profit decline as revenue grows because their priority strays from the bottom line.
“But with the client’s bottom line always at the forefront of their work, our CFO Partners are conscious about ensuring the revenue is spent wisely, thus maximising profit,” she added.
But it’s not just identifying unnecessary costs and expenses that has made CFO On-Call such a profit boosting service. It’s also the direct savings of engaging through the virtual world.
As the name implies, CFO On-Call experts are available around the clock through a blend of online and in-person communications systems. This gives a business the benefit of connected expertise without the cost of a full-time salary and associated statutory employment requirements.
“Not every business can afford the services of a full-time CFO to help navigate financial growth strategy, so the growing popularity of the Virtual CFO is helping to level the playing field,” continued Sue.
“We always knew our clients were experiencing some significant benefits, but it wasn’t until we crunched the numbers that we realised just how well they were doing.
“It was a real watershed moment.”
Click here to read the full results from CFO On-Call’s research.