Virtual CFO FAQ’s
Generally an outsourced CFO charges between $1200 and $2000 per day. This may sound expensive, however a good outsourced CFO will deliver many times their cost in improved profit, cash flow and business value. They should be able to identify ‘quick wins’ straight away for a business. You don’t need to supervise them… they walk in and identify quickly what needs fixing… after a brief discussion with a business owner. Opportunities abound for CFOs to pay for themselves from ‘new money’ they help you to create!
Well rounded experience over several decades, is a must when hiring an outsourced CFO. Someone who has been ‘knee deep’ in the financial dealings in business, rather than someone fresh out of university with no experience, will deliver great value to a business.
Good communication to be able to explain the financial position and work out what you need to do about it is a must. The true value of a CFO is helping you to change the ‘status quo’… not accepting it. They are there to help you change and they can only do that with lots of ‘real live’ commercial experience.
Some accounting firms promote that they offer CFO services. This is because the accounting bodies e.g. CPA etc. have told them they need to do this to remain relevant to their clients. The unfortunate reality is they don’t have the resources to deliver. This is because most recruits to accounting firms are fresh out of university, with no ‘real live’ business experience. You can’t amass experience from a textbook. You have to ‘live it’, experience it and learn from it.
A dedicated CFO has gained this from (sometimes) painful experience. They know how to see trends and guide business owners away from ‘icebergs’ that could sink the ship.
We now have the useful financial information we need to make informed financial and business decisions at the right time. His input has led to a 27% improvement in profitability.
Greg Jacques, General Manager
My CFO On-Call Michael came in and implemented a range of new systems and reports that we still use today. I now have a P&L which I can read and actually understand! Michael’s great at putting things into layman’s terms and helping us make sense of complex concepts. And his value doesn’t just stop at numbers – due to his commercial background he has also been a great asset to us in terms of recruitment and managing staff.
Jenny March, Owner
Before engaging CFO On-Call, the bank wouldn’t support me, so debtor financing was my only option. CFO On-Call set up our new management reporting and forecasting, and the bank changed their mind. Since then, we have grown total revenue by 17%, increased gross margins from 17% to 37% and improved debtor days by 36%. We’re going from strength to strength!
Peter Deverall, CEO
Safa Glass, Brisbane