Every business needs an expert financial consulting advisor, but only about 42% of small businesses have CFOs. Most small businesses feel that they can’t afford a full time chief financial officer, so they forgo hiring one altogether. However, this is always a bad move because accounting can be quite the challenge and is one of the major reasons why small businesses fail.
This doesn’t necessarily mean that you can’t get the financial advisory and accounting assistance that you need, because you can hire a part-time CFO. Outsourcing your financial matters to a part-time virtual CFO can be advantageous for your business. You will not only have a professional tracking your cash flow but also presenting you with timely and accurate reports.
They will analyze data and identify your businesses’ financial weaknesses and strengths for economic forecasting and strategy implementation. This will allow you to focus on other business matters.
Let’s take a deeper look at ten other benefits of hiring a virtual part-time CFO.
1. It’ll Save You Money
Hiring an in-house CFO as an employee and giving them a full-time salary with additional company benefits is always more expensive compared to hiring part-time services.
If you’re looking for a way to cut costs and expenses without having to compromise on quality, then hiring part-time CFO services is a great idea. You need to achieve high accounting standards, and you can achieve that without spending huge amounts of money that could go to other areas.
2. They Bring in Experience From Various Industries
A part-time Virtual CFO is most likely working with other companies as well and handling other types of projects in various industries. This means that they have gathered enough knowledge and expertise when it comes to managing finance. They will implement different skills and strategies for different problems.
This is a significant benefit for your business because you’ll get a professional who already knows what works and what doesn’t. They will not only share their knowledge with you but use it to better your business, for a fraction of the costs. If you find the right virtual part-time CFO, you’ll have an expert that can see all the blind spots and take good care of your business.
3. There’s a Small Learning Curve
You understand that if you were to hire a general CFO employee into your company, you may need to offer training. It could take months before they get up to speed and perform at maximum capacity. This isn’t the case for virtual part-time CFO professionals.
Even if they don’t specifically have experience in your industry, you will have a smaller learning curve. They have experience in entering organizations mid-process, and it’s possible the one you hire will hit the ground running. They will access your current situation and start taking effective actions and resolving challenges as soon as you make a deal.
4. They Have Rich Networks
Expert CFOs have been in business long enough so they will not only bring their financial expertise. They will also have a robust network of organizations and individuals you can leverage from. Some of them may include lenders, industry experts, and financiers.
It’s also highly likely that you will hire a CFO that is a part of a larger CFO team and will have access to all their networks. This means that they may know people you can work with if you’re planning to expand your business in the future.
5. You’ll Benefit From a Team of Experts
While you may be hiring one CFO who will be your single touchpoint, chances are they will be a part of a larger CFO group. The best thing about this is that your business will benefit from the expertise and experience of the whole team.
Outsourcing virtual CFO can be a complete advantage for your business because these individuals have a standardized method of formatting and reporting. They work with multiple businesses in various industries, which means they have adapted to the best and widely accepted practices for delivering client reports.
6. You’ll Have Fewer Tax Problems
When the time comes for you to sort out your business taxes, you’ll need to have all your business accounts, receipts, and necessary documents. Things can get messy quite fast, and a lot of businesses are always penalized for late submissions.
With a virtual CFO on your side, however, all bookkeeping will be well managed. Everything will be in order and updated and come tax time, things will be seamless.
7. Less Hassle in the Workplace
Accounting is a major part of a business, and your employees may feel pressured to get it done. Having a professional expert take care of it can create a calmer working environment because everyone knows they will only take care of the jobs they can handle. Handling this responsibility to an expert is the ideal solution for everyone.
8. Changes Are Seamless
It’s highly unlikely that you’ll need to change your CFO during their tenure, but if something goes wrong, the transitions will be fast and painless. Hiring a virtual part-time CFO is quite different from hiring an in-house employee, and transitioning to a new one is quick and easy. You may get a different CFO from the same team, and they will be well informed about what your company needs, making the transition smooth.
9. They’ll Have Credibility
When you hire a virtual CFO that has proven themselves in the industry, they have already gained credibility. These individuals have handled multiple challenges and raised funds for various companies. This means that they have gathered more experience and may have better strategies compared to CFOs that have worked in the same company for many years.
10. They Will Act As a Trusted Advisor for Your Business
CFOs don’t necessarily have to be accountants, and while they are experts in the financial aspect, they could bring in expertise from other fields. They may be able to bring sound advice on major business decisions and help you grow your business.
Handle Your Business Finances With Confidence When You Hire a Professional Part-Time CFO
There you have it! As you can see, there are many benefits of outsourcing your finances to a virtual part-time CFO. They are experienced, and come with honed skills from different industries, making them a great choice for any business.
If you’re ready to hire a CFO but can’t afford a full-time employee, please get in touch with us, and we’ll help you connect with a professional virtual part-time CFO.