As a small or medium sized organization, you may not have the resources available to hire a senior finance resource, despite needing access to that level of expertise.
A Virtual CFO can provide the level of expertise you need as a part-time contracted resource. Virtual CFOs will work with you to manage and build your business by ensuring that your financial resources are well managed and available when you need them.
5 reasons you should consider hiring a Virtual CFO for your small or mid-sized organization:
1. You want to grow your business.
Even if your accounting transactions are well-handled, a lack of senior level financial oversight may be preventing business growth. A Virtual CFO gives you the senior level advice and oversight that your business needs without the cost of a full-time hire. Virtual CFOs function within your management team and provide business advice through a financial lens. This gives balance and strength to the management of your business and is key to building value.
2. Your business is changing significantly or quickly.
If your business is going through a period of change, you need your financial information to be more relevant and timely. You need a senior finance person working closely with your finance team, or your bookkeeper, and you need to better identify and measure the key factors that are driving business performance. This applies whether you are a for-profit business or a not-for-profit, as both need to deliver efficiently and effectively.
3. Cashflow is getting tighter or a big contract is on the horizon.
If your cashflow is getting tighter or you have a new contract which is bigger than you have handled before, it may be time to hire a Virtual CFO. You need to know well ahead of time when cash may be tight or your options are becoming limited. With the right data informing your discussion and enabling you to better manage your cash, your negotiating position is strengthened with potential lenders or investors.
4. Your financial reports are never quite right, something keeps changing or, at year end, there are many audit adjustments.
These are all signs that your finance team or your bookkeeper may need some additional senior level support. There may be a knowledge gap, too much change and/or too high a workload which makes dealing with issues more difficult. Senior level support can help and improve confidence in your financial reports.
5. Things just seem to be not running smoothly.
Sometimes it’s just your gut saying it’s time to have an expert give you unbiased recommendations with no long term commitment.
How do Virtual CFOs work?
Virtual CFOs work with organizations in a flexible way to support their needs. This may be a regular engagement, a half or full day a week. It may be a fluctuating level of effort depending on your needs. The part time, contract nature of the arrangement makes it an affordable option that can pay for itself in sound business decisions and a stronger organization.
By working with many clients across different sectors, Virtual CFOs bring you a breadth of experience and knowledge that would otherwise not be accessible. Virtual CFOs truly work as part of your management team and are focused on making your business more successful.
All organizations need to manage their financial resources effectively, and we are here to help.
Business Sherpa Group is dedicated to the long term success of small and mid-sized organizations. We scale our services to meet the respective needs of each client, where we support and guide you to your peak business performance. Learn more about the Business Sherpa Group Virtual CFO services.
About the Author
Jan O’Donnell is the Managing Director for the Finance & Administration practice and CFO for the Business Sherpa Group. Jan is a Chartered Professional Accountant (CPA) and has been providing Contract CFO support to high technology, small businesses and not for profit clients since 2004. Jan is passionate about combining her business and financial management expertise to provide a hands-on approach to building and enhancing the finance role within small and medium sized organizations.