CFO services are extremely valuable to any business large or small. A common problem for small businesses is not having the same accessibility to the same level of CFO that a larger company may have access to.

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The challenge lies in finding, hiring and maintaining an expert level CFO that may gravitate toward a larger business.. With the increase of remote workout growing across various industries, virtual CFOs provide a unique solution for growing business ready for a fractional CFO. Also referred to as fractional CFO services, outsourced CFO services, or part-time CFO services, virtual CFO services are professional financial management services that are delivered remotely. This blog will talk about how these services actually work. 

Getting a virtual CFO isn't as complicated as it may seem. Depending on your company’s complexity, a virtual CFO’s onboarding can take as little as two to four weeks to gain access and familiarize themselves with your establishment’s finances Typically, the onboarding process starts with an initial meeting to go over short and long term goals within the business. Determining your goals can help the CFO understand what steps need to be taken in order to accomplish your objectives. . The CFO is a business partner you can trust, and will make suggestions with your best interests in mind. After setting goals, the virtual CFO will be able to begin preparing custom reports which will help tell your specific business’s story and provide a roadmap of where the business is going.. Your virtual CFO should be able to customize reporting so that it best suits your needs - perhaps that means more visual data versus data that is more numbers-oriented.  These custom reports will allow you to hone in on which key metrics you should be monitoring and how they emphasize your business’s performance.

One of the biggest benefits of hiring a virtual CFO is the fact that you gain instant access to their expert opinions that have been refined over their many years of experience. Oftentimes, CFOs can suggest new softwares, systems, or processes that would make your business run more efficiently. A CFO may also provide helpful input in cleaning up your past financial records because setting a solid and truthful foundation is what is going to set you up for future success. This may mean that they have to take some time to refine the balance sheet or adjust the Profit & Loss, which would provide a snapshot of your company’s financial standing and overall financial health.

• reviewing the existing financial systems and assessing opportunities for efficiency 

• providing in-depth analysis of financial metrics

• exploring growth and funding opportunities

After a CFO’s initial onboarding is complete and they have a firm grasp on your company’s finances and trends, there will typically be a regular cadence of meetings scheduled so that you and your company’s stakeholders can review and discuss all financial reports. Additionally, a CFO may schedule meetings to provide context and expert guidance around these reports. The CFO will also be available at other times as questions arise internally or when information is needed by any financial partners or institutions. Frequently virtual CFOs liaise with your tax accountant to prepare your annual filings.

The frequency of regular reporting will depend on the size of your company and its needs. This is usually monthly, though a CFO may recommend that weekly cash flow or daily flash reports may need to be shared and monitored to keep a pulse on the business’s financial well being. Communication is usually handled via phone or video conference with a service like Zoom or Google Teams meetings. Also, document sharing may be handled by email or a document management solution like Google Drive, DropBox, or some other secure server.

The data itself will likely come from a variety of sources. The components of the ultimate reporting package may temporarily live in various formats like Word, Excel, PowerPoint, QuickBooks, or an industry-specific analytics tool like SaaSOptics (for SaaS) or AutoTask (for MSPs). In some cases,  the virtual CFO will provide a live dashboard, so you can always monitor your business by viewing custom, consolidated reports. 

The responsibilities of a CFO are vast, as they can not only act as a bookkeeper and manage day-to-day responsibilities that establish reliable data, but they can also interpret the results and provide insights to help point the company toward the goals stated, all while remaining completely online. In addition, a CFO can be a much-needed sounding board, coach, or guide. Look for a seasoned veteran who you can trust, not merely someone to fill a role. In the end, you'll have a team member who knows your business and can help hold you accountable as you work to reach clearly-defined goals. An outsourced CFO can give you the competitive advantage your business needs. 

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CFO services are extremely valuable to any business large or small, but it's tough to find the right CFO you can trust. finairo offers a wide range of outsourced CFO services and works with small and medium-size businesses to help them increase profit margins and scale effectively. Request a consultation to learn more about how finairo can help empower your business through accurate, timely, and insightful financial practices.