As of early 2022, there were more than 125,000 chief financial officers in the U.S. Many of them work full-time for large companies that need someone to take charge of their financial information.
But there are also many smaller companies that are starting to bring virtual chief financial officers on board to help them. It’s so much easier for them to hire a virtual CFO as opposed to hiring a CFO who is in their offices every day.
So, what is a virtual CFO? And why should your small business consider investing in virtual CFO services?
Here is everything you need to know about virtual CFOs.
What Does a CFO Do?
Before we can break down what a virtual CFO is, you need to know the answer to the question, “What does a CFO do?” It’ll give you a much better understanding of how all CFOs can help the companies they work with.
A CFO is someone who has their finger on the pulse of a company’s financial situation. They know how much money is coming in and going out at all times, and they keep one eye on the future to make sure a company is set up for long-term financial success.
A CFO will be able to comprehend something like this guide to cash flow management and use it to a company’s benefit.
What Is a Virtual CFO?
A virtual CFO does all of the same things that a regular CFO does. The one big difference between a regular CFO and a virtual one is that a virtual CFO will work for a company remotely.
More often than not, a virtual CFO will work with a smaller company that doesn’t necessarily need a CFO on staff each day. They can get away with only having a virtual CFO helping them out with their finances some of the time.
What Are the Benefits of Hiring a Virtual CFO?
There are tons of benefits that your company can enjoy when you hire a virtual CFO. First and foremost, hiring a virtual CFO to work part-time for you will cost less than hiring a full-time CFO.
Hiring a virtual CFO will also give you a chance to focus on things like marketing and your day-to-day operations as opposed to your financial projections.
You won’t spend so much time stressed out when you have a great virtual CFO on the job. They’ll make it easier for you to run your company since you won’t need to be concerned about your finances all the time.
Hire a CFO to Work Virtually for Your Company
As you can see, hiring a virtual CFO will make all the sense in the world. Your company should look into doing it ASAP if you haven’t done it already.
Hiring a virtual CFO shouldn’t cost you too much money in the end. But it will pay off in a big way once you see how they’re able to help your company over time.
Get additional tips on running your business more effectively by reading through more of our blog articles.