The Importance of a VCFO in Your Business

If you thought that a CFO or Chief Finance Officer was just for the big companies, you were wrong. More and more small to medium sized businesses are bringing a CFO to the team.  Whether you want to become the CFO of your own business or are considering bringing a CFO on, we’ll give you the rundown on the importance of a CFO and how they can play a vital role in the success of your business. Remember that you can hire a virtual CFO which reduces the costs and means that they can become an affordable advisor to your team.

Here are our top 5 reasons why you should hire a VCFO:

1. Cash Flow Management
As your business grows there is often more money coming in, but also more money going out. Cash flow can be hard to manage and maintain, a VCFO will pull monthly reports on business performance to ensure that there is always enough coming in at the right time to pay all the money going out again. A VCFO can help you take control of how the money moves in and out of your business. 

2. Managing Your Budget
Do you have a budget in your business? Have you estimated how much you are going to spend this month, next month or even next year? Creating and managing a budget can be a powerful tool to help you prioritise, plan for and stay on top of your business spending. A VCFO can help you plan this out so that you can start to set some longer-term business goals knowing that you will be in the financial position to support it.

3. Risk Management
Are you concerned about the unknown? The ‘what ifs’ in your business? A CFO can be a comforting team member to help you put strategies in place to prevent problems and they can monitor these and provide feedback to you along the way. Debtor and creditor management procedures are ideally something every business needs to have in place to ensure the business runs profitably. 

4. Reviewing Your Systems
Are you confident that your systems are running as efficient as they should be? A VCFO will review everything from Bookkeeping to software systems which ensures everything is being allocated correctly and that your platforms are talking to each other and are integrated to work optimally. 

5. Too many balls in the air?
A business that is growing rapidly can sometimes expand too quickly. They gain multiple loans, expand into new areas, hire staff and invest in equipment and infrastructure. All these things can get out of hand pretty quickly and it’s easy for the paperwork and finance side of things to get missed. A VCFO can make sure that you have everything in order, tracks your obligations and helps you develop debt management strategies.

We are passionate about this side of accounting and love providing Virtual CFO support to our clients. We become part of your business and absolutely love being part of your team. If you feel that you need more than bookkeeping support for your business, but aren’t quite big enough to employ a full time Chief Finance Officer then a Virtual CFO may provide the best of both worlds for you and help you grow your business.

Please contact us for any further information. We can be reached at (03) 9424 9447 or email.