By Chris Heinemann Virtual CFO, Chartered Accountant, Advisory

The first step is to be in control of your finances. The good news is that financial management help is at hand in the shape of a Virtual Chief Financial Officer.

A Virtual Chief Financial Officer (VCFO) is a strategic partner with years of experience in finance and business, whose expertise is in the financial management of a company.  

The services a VCFO provide are a lot broader than what are associated with the traditional accountant, who is mainly trained in tax and data preparation. The VCFO’s objective is to ensure your business is running effectively, is achieving your objectives and is always forward-looking.

 

The benefits of a VCFO as your strategic partner

1. Financial planning as big as your aspirations

Financial planning and preparation is the key to success. Work with your VCFO to turn a dream into a plan with substance. Support your plan with financials including a cash flow budget, forecasts, breakeven, and sensitivity analysis.

 

2. Empowerment through financial strategy

Receive independent, specialised and strategic insights as well as accountability. VCFOs have a broad view of the whole business and can help advise across all areas. They will help you feel empowered and make decisions with confidence.

 

3. The right advice at the right time

A VCFO will help you recognise and best address opportunities and risks as they arise throughout the business process. The world has never moved faster and the consequences of reacting too late are huge and may cost you your business, so having access to this advice when you need it can make a world of difference.  

 

4. Management of business failures

Many of the reasons why a business fails are often controllable and are addressed by a VCFO. For example, a VCFO can create cash flow maximisation strategies.

5. Time, stress, and risk management

Owning a business is stressful and most owners aren’t trained in all the areas required to run one. Anxiety, fear and lack of sleep normally follow. It’s important to accept you can’t know or do everything – nobody can. 

A VCFO is experienced in running a business and has specialist knowledge. This support will lift a weight off your shoulders and leave you feeling less stressed. 

 

6. Business improvement

Stop wasting time in areas where you are less strong, and in areas that others can do just as well but without investing your own valuable time. 

Instead, see business improvements by spending your time where you add the most value, and in the areas you are most passionate about. 

 

7. Higher profits

The finance function needs to be integrated into the decision-making process and present at every stage. A VCFO provides oversight, insight and direction to the business, which can result in greater profits. 

They will help you to identify growth opportunities – which can be transformational – and will lead you in tracking your progress with metrics tied to the goals of the business.

 

8. Business journey navigation

Running a business requires ongoing decisions – what structures to set up, how best to manage growth, preparing for an unexpected event, pricing issues, what are the numbers saying, exit planning, management of stock, and ensuring debtors pay, right through to optimising cash flow, evaluating a new project, and more. 

A VCFO can help you navigate through all of these decisions and changes. 

 

9. Asset protection and preservation

A VCFO will help you put the right structures in place so your assets are appropriately protected.

 

10. Cost reduction

A VCFO can balance capabilities, services and cost levels. They will also consider how core systems can be simplified and standardised.

A VCFO also allows business owners to experience the benefits of expert financial advice without paying a full-time salary.

 

11. Innovative financial management

A VCFO will challenge your existing behaviours in financial management to achieve strategic and financial objectives.

Now is the time to make the move from hiring a number cruncher looking in the rearview mirror to investing in a difference-maker who can proactively partner you to achieve your goals.