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What is a VCFO?

A VCFO or Virtual Chief Financial Officer provides the services of a full-time CFO on a needs-only basis. A CFO provides business expertise and financial knowledge to help businesses with their day-to-day tasks, and achieve their medium to long term objectives. So, why would you hire a VCFO?

Depending on the client’s requirements, a VCFO can deliver weekly, monthly, quarterly or one-off services. VCFO’s offer the same services as CFO’s. They help grow and expand a business by budgeting, forecasting, managing cashflow, project work, and delivering customised management reporting.

How do they deliver these services?

New technology has made the VCFO a reality. In the past, the limitations of software and hardware has barred this offering. With the development of cloud-based technology, faster internet speeds and automation, business owners can get more for less. Todays communication apps like WhatsApp, Skype, and Slack give business owners the opportunity to share information with VCFO’s which wasn’t possible in the past.

Live data from accounting solutions such as Xero have enabled complementary software as a service products to develop and thrive. These products have reduced the entry barriers of the past and enabled more businesses access to these solutions.

In the past, software and hardware required an on-site presence, making a VCFO offering extremely expensive.  The live information available these days enables VCFO’s to give you up to date guidance so you can act sooner and more frequently. Instead of passively working on your businesses goals, you can proactively achieve your goals through these monthly or quarterly catch-ups.

Why would I hire a VCFO?

A VCFO can take a step back from the business and give an outsiders perspective to help owners work “on the business”. This can be difficult for business owners to do themselves as they work “in the business”. VCFO’s don’t just look at the figures, they look at the facts of the business by really getting to know how the business operates.

Tracking goals helps you achieve goals. Catch-up meetings will measure your progress, and keep you accountable – committed to your business growth. Once in a while, you will also need another person to give you that push and say “what did you actually do last month”. A VCFO can look at your scenario and question what you are trying to achieve, and how you are progressing. A VCFO should be forthright and honest with you. They will challenge you on business ideas and decisions that an employee won’t be comfortable in doing.

VCFO’s are on-call and ready to help when you need them. Rather than hiring a full-time CFO, a VCFO can help small businesses access the knowledge of a CFO for a fraction of the price. VCFO’s can also deliver more knowledge as they have worked with a diverse range of businesses and industries.

How can VCFO Accountants help?

At VCFO Accountants, we specialise in delivering CFO services to business’ who normally do not have the resources to hire a full-time CFO. We give you the flexibility to choose the relevant services to ensure you keep your costs low. We want to become part of your business. If you are looking to grow your business and increase your profits in a sustainable manner but are not able to afford a full-time, in-house CFO, contact us to see how we can help.