What Does Virtual CFO Do?

There is all kinds of excitement about hitting financial goals and growing revenue. But with business growth comes an additional requirement for an experienced and qualified professional financial executive.

Oh no! Maybe you can’t afford a full-time CFO. Here you get lucky to get access to the expertise of a Virtual CFO.

But what is a virtual CFO, and what does a virtual CFO do? Do your business need an outsourced CFO service?

What is a Virtual CFO?

A business that doesn’t have an in-house chief financial officer can hire a virtual CFO. A virtual CFO performs all the duties of a traditional CFO on a contractual or part-time basis.

He/ She takes care of the financial health of the business with the use of cloud technology. A virtual CFO provides financial insights and also guides in back-office functions including account ledgers, financial statements, cash flow forecasting, debt planning, and much more.

What does a Virtual CFO do?

A virtual CFO takes on the traditional role but with new cloud technology tools. Following are some of how virtual CFO assist:

• Financial Projection: virtual CFO helps you to get financial projections through analysis of financial and income statements.
• Cash flow forecasting: Income projection helps to maintain necessary cash inflows to keep the business running and satisfy its commitments.
• Managing cash flows: Virtual CFO services make sure proper and organized management of cash flow to check on cash usage.
• Setting up an accounting system: It helps to analyze existing accounting systems and suggests recommendations if any.
• Debtor and Creditor Management: It helps to minimize the credit risk debtor by effectively managing the credit line of the business.
• Budgeting: It is important to pre-determine the budget and helps in evaluating the process periodically and tracking the progress.

Advantages of Virtual CFO Services

• Maintenance of Accounting Records:  Virtual CFO services helps in accurate accounting records as per the accounting standards. The financial statement of the business must be prepared according to the accounting norms and standards specified by the regulatory bodies.
• Diverse expertise and subject knowledge: A virtual CFO develops diverse expertise while working with clients across various sectors. They gain specialization in one industry and develop a deep understanding of businesses, drawing on their valuable experiences.

A virtual CFO helps to tackle diverse financial challenges. They can handle any situation owing to their prior experiences in similar situations and can advise accordingly. Outsourced CFO services like Meru Accounting bring a diverse pool of expertise to businesses at affordable rates.

• Better return on Investment: The biggest advantage of a virtual CFO service is top-level expertise without any costly salary. It helps to save the in-house CFO salary cost which is close to $400,000 according to data from salary.com.

Hiring a virtual CFO lets you control the cost by providing flexibility to opt for the service only when you need it. They become the best resource for cost-cutting within the business.

Get started with Virtual CFO with Meru accounting. Schedule your free virtual CFO consultation with us now