Posted by Cedric Joshua Martinez
Jun 05, 2020
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The complexities of running and managing your own enterprise cannot be emphasized enough. This is especially the case if you consider how hard it is to juggle the oversight of your core business activities and look after your critical business numbers. The good news is that you are not entirely helpless on the matter.
By seeking the services of a part-time Chief Financial Officer (CFO), you can stop worrying about your numbers and focus on your business.
A part-time CFO, also known as a virtual CFO or fractional CFO, is a finance professional who provides high-level financial oversight and strategic guidance on a flexible, as-needed basis. Unlike a full-time, in-house CFO who works exclusively for one company, a part-time CFO typically serves multiple clients, offering expertise without the commitment and cost of a full-time executive. This arrangement is particularly advantageous for small to mid-sized businesses that need expert financial leadership but do not require—or cannot afford—a full-time CFO.
Part-time CFO services can be availed through specialized firms that provide high-level accounting services or through freelancing platforms where experienced CFOs offer their expertise on a contract basis. These options provide businesses with the flexibility to choose a CFO solution that best fits their needs and budget.
But what exactly does a virtual CFO do? Read on to find out what you can expect from these professionals:
RELATED: Five Signs You Need Part-time CFO Services
What does a part-time CFO do?
Financial oversight
Financial oversight refers to the overall supervision and control of your company’s financial transactions.
Aside from the implementation of internal finance and accounting policies, this process also includes creating, interpreting, and analysis of financial statements.
It goes without saying that seeking CFO consulting services to focus on your cash flow will help ensure the stability of your business finances.
Proper business budgeting
Creating a budget and ensuring that your financial resources are being put to good use are basic tasks that you may easily see through.
But with a growing business and a more complex set of books, keeping a close eye on your business capital could be a challenge. CFO consulting services can help ensure that your expenditures are strategically planned and strictly implemented.
Read: The Role of a Chief Financial Officer in Good Cash Flow Management
Cash management
Cash management is not just about the wise and practical use of your money. More than anything else, it also covers the assessment of market liquidity and corporate investments.
A virtual CFO who has extensive knowledge about asset and investment strategies provides indispensable help for growing your wealth and fostering the financial security of your business.
Compliance preparation and lodging
Adhering to your civil obligations requires an in-depth understanding of compliance regulations with banks and lending institutions, as well as the taxation laws mandated by the state that your business operates in. The easiest way to keep out of trouble is to make sure that you have a virtual CFO to take charge of your compliance requirements.
Read Next: What is CFO Outsourcing? Benefits and List of Services
Debt collection and financing
Does your business have a set of strategies to improve the outcomes of your debt collection initiatives? How about financing options – do you have access to professional financing advice? These functions could be a little too taxing for business owners.
Fortunately, you can make things a lot easier by having a virtual CFO to get these tasks out of the way. They can formulate ways on how you can manage debts and help your clients with flexible options that suit your cash flow. Even if your organization does not have the current resources to have a full-time CFO then it’s worth considering pairing up with a virtual CFO service provider that can deliver part-time or contractual support to your business. This will help you get a hold of your books and keep your numbers straight.
Through their expertise, you can make the right decisions with the right data and ensure that you are on track to fulfilling your business goals.
Looking for back-office accounting services to support your CFO?
Consider D&V Philippines. We are a business process outsourcing company specializing in finance and accounting solutions that offers comprehensive CFO support services to assist with the back-end needs of a finance chief.
You may talk directly to our expert today and let us lend you a helping hand to your task. You may also download our “Premium CFO Solutions” whitepaper today and learn how our finance and accounting professionals can help you attain your goals.
This post was first published 26 September 2014 and edited 29 August 2024. Edited by: Angelica Garcia
