Businesses around the world were shocked at the impact of the COVID-19 pandemic, and many are now streamlining their processes and cutting costs while seeking new ways to increase revenues. One of the most effective ways to do this is to hire a virtual CFO rather than hiring an expensive full-time chief financial officer.
But, what does a virtual CFO do, and could outsourcing this role be the right move for your business? If you’ve never used these services before, you may wonder why you need them now.
Read on to find out what virtual CFOs do and why they are in increasing demand.
Financial Evaluation and Forecasting
A virtual CFO can be invaluable when conducting an audit of your current situation. They will have experience across a broad range of industries and can apply their knowledge to ensure you are on a firm financial footing. A good CFO will look to the future and anticipate how you can thrive even if the market were to change and reduce some of your current income methods.
They will also help you forecast future revenues so you can plan ahead and look to invest in your business.
Board Reports and Recommendations
One of the most important tasks of virtual CFO services is to collate information and present reports to the board. Your leadership team needs accurate and detailed information to make the most suitable decisions. Board members may also seek advice from a financial expert. This can be crucial and directly affect the future opportunities for your company.
Cost Management Services
While a virtual CFO salary will be considerably less than that of a full-time employee, they also help you save money elsewhere. A virtual CFO can evaluate your outgoings and processes, helping to streamline your operation so it is more efficient. This could be in the form of amalgamating departments or advising on how best to utilize staff who have too much free time on their hands.
Opportunity Identification
Virtual CFOs are experts at finding new opportunities to raise revenues. Because they work across many industries, they are aware of potential growth strategies that an in-house employee may not recognize. This means they can make recommendations that could lead your company in new directions.
But, they will also examine your current contracts and determine if there is an opportunity to boost your income with clients who already value your products or services.
Hire a Virtual CFO Today
Outsourcing key functions to a virtual CFO can be an excellent way to increase revenues while lowering costs. Every business needs to adapt to ensure they stay ahead of the chasing pack, and an experienced virtual CFO can steer your company in the right direction. They can also help you avoid mistakes while optimizing your current resources.
If you’ve found this post helpful, be sure to check out more useful articles in our Grow section before you go.
