What to Look When Engaging With A Virtual CFO?
All growing businesses have financial challenges that cannot be addressed by Accountant or expensive CFO. Most Start-ups or SME fall behind in the first thirty-six months of operation due to financial incompetence. The importance of accurate book-keeping, maintaining budgets, tracking profits and loss, and managing your cash flow could determine the survival of your business.
Virtual CFOs are commonly hired to provide a financial perspective to business owners as they are aware of business drivers, dangers and best practices to help management to grow business to the next level.
1. Cash Flow Management
This is the single most important hurdle for most companies who are likely to run short on cash for next round of funding as business is not stable but opportunities are plenty. The virtual CFO will help in limiting expenditures, budgeting costs, ensuring money in the bank and allocate funds according to business needs.
2. Creating An Efficient Infrastructure
CFO can help to establish Strong Processes to monitor the financing information and implement scalability in practically every part of the organization. This includes payment processing, payroll operations, human resources, and accounting systems. CFO can also implement dashboard reporting which involves looking at your actual performance versus your budget and goals, your balance sheet, cash flow and trends, Key metrics and KPIs to help management to take decisions.
3. Networking And Industry Insight
An experienced CFO with specific industry background and cultural-fit can unleash significant benefits to businesses. They are well versed in fund sourcing routes, analytical tools & data driven plans, know-how of business models and constraints, due diligence and KPI to help management to think ahead.
The Virtual CFO plays a viable role in scaling a business and is advisable to seek professional advice when it comes to understanding how the finances helps business, right cost cutting measures and managing the cash-flow.
SBS Global is an ISO 9001:2015 & ISO 27001:2013 certified company serving since 2007. SBS Global offers a comprehensive range of Accounting, Virtual CFO Services, Compliance Services (i.e., Company Secretary services) & HR Services catering to the needs of Small & Medium Organizations across industry sectors to meet their changing needs & expectations. Our team includes employees having industry & domain expertise who have insights drawn from years of professional experience.