When a small company is successful, it is the natural progression of things for that company to grow and expand. If you are a small business owner and are ready to take your company to a new level, you may need expert help to do so. A successful company can fail very fast if it expands too quickly. To manage all of the financial parts of your business expansion, you may need to hire financial experts for the process. One of the best ways to manage a growing business is to hire a CFO.
A CFO can be expensive, however, so you may want to outsource your needs to a virtual CFO. Here is more information about what to expect.
Pay for What You Need
A virtual CFO is someone who works on a contractual basis outside of the company. They have all of the skills, training, and experience of someone who would work at a regular business, but they enjoy the flexibility of working with a variety of businesses. If you hire a virtual CFO, you'll have someone to manage all or some of the financial affairs of your company without having to pay that person a CFO salary. A virtual CFO can be used temporarily or simply as a consultant. Companies that provide access to these experts make it easy to connect with several candidates that you can interview and determine which person is right for your company.
Understand What Availability Will Be
The benefit of having a CFO that you pay a salary to and that comes into work every day on a set schedule is that they are readily available. Virtual CFO services may have some limitations on availability. Availability often depends on the company that outsources CFO services. Some of these companies require the CFO's that sign on to be a part of their services to be on call during regular business hours. Some of these services will provide in-house meeting services if the opportunity arises and you need a CFO to fix an issue or take a meeting in person. The details of availability should be determined based on the contract you sign with your virtual CFO and all the terms of that agreement before hiring them.
Help Make a Virtual CFO as Effective as Possible
If you outsource a CFO, the key to making that service work for your company is transparency and communication. The CFO oversees the accounting and flow of money of the company. As an offsite manager, the virtual CFO needs to have all documents and communications needed to do his or her job for you honestly and effectively. Whether you are hiring a CFO to expand a growing company or to help transform a failing company, the goal needs to be clear from the onset. Thus, it's important to set up the proper communication channels and plans so the CFO to help you achieve the goals.
When it comes down to it, business is about making money. A CFO can help you maximize your business's potential, and a virtual CFO can do so much more affordably and on a basis that works for your business needs.