Large firms are able to hire a full-time Chief Financial Officer (CFO) to create strategies that help secure the future of the company.
CFO’s of large firms require a well staffed team to collect data and monitor cash flow, but what about small businesses?
Small business owners are passionate entrepreneurs, but not necessarily equipped with the right skill-set or time needed to act as their own CFO.
The cost of hiring a full-time CFO and staff is not plausible for most small businesses or organizations.
This can lead to tasks normally done by a CFO being assigned to often unqualified friends or family. The solution is the virtual CFO.
What are virtual CFO services?
A virtual CFO (vCFO) can accomplish nearly all the duties of a full-time CFO, but for a lower cost.
A virtual CFO could be one individual or a team collaborating for the specific needs of the business owner.
Outsourcing the time demanding duties of cash-flow forecasting or debt management to highly qualified individuals allows the business owner to tackle other projects or goals.
The services a vCFO provides have a wide range, depending on how much assistance the business needs.
Tailoring the service to each business owner is one of the first benefits of a vCFO.
For those that need more hands-on help, weekly updates and reports are available, while monthly meetings are an option for owners that just want to know they’re staying on track.
One of the most useful services a vCFO provides is debt management or risk reduction.
Having organized and complete records is the first step, but counseling to better manage debt and understanding what the options are is what leads to success.
Mismanagement of debt can leave a good day of sales feeling sour at the end.
Two other vital services the virtual CFO’s offer are cash-flow forecasting and variable versus fixed expense reporting.
Getting a proper timetable on profits and being able to predict cash reserves will help any business owner make more informed decisions.
Combining this service with variable versus fixed expense reporting are a vital part of any big decision.
Virtual CFO services start at the basics with creating a budget, but can include long-term plans for growth and detailed, individualized counseling.
For more information on LUXA virtual CFO services contact us today.
