When to Hire a Virtual CFO: The Ultimate Guide

Before we learn when to hire a virtual CFO, let us understand the importance of a CFO in a modern company.

The Major Roles of a Virtual CFO

Over the last decades, the business world is undergoing rapid transformation and companies are finding it hard to keep up. One of the major hurdles is in financial planning. You might have developed your plans, strategies, and forecasts according to the current business climate. However, this can change very quickly in the age of globalization and changing customer demands. New technologies and business practices can grow dominant and render your business unsuccessful.

To maintain steady growth by keeping up with the changing business climate, your company must have a highly expert financial planner. They are typically called the Chief Financial Officer (CFO) of the company. The roles of a CFO can be summarized as follows:

Prepare and present the financial statements and corporate reports of a company.
Ensure the quality of the finance and accounting department.
Advise the company on new partnerships, customers, and markets.
Assess the possible risks and design strategies to avoid them.
Understand the laws and regulations of the market the business operates in.

Virtual CFOs carry out exactly the same tasks, but they work remotely on a part-time basis. If you feel that you can outsource your financial planning, then virtual CFOs can be a cost-effective option.

When You Should Hire a Virtual CFO

Now, let us understand the common situations when you should hire a virtual CFO.

You Have Difficulty in Budget Planning and Forecasting

Budget planning and forecasting can be a daunting task for most businesses. There are several variables that you should consider before planning for the next financial term. While presenting to your investors and stakeholders, you must assure the growth and profitability of your company. This is when you should hire a virtual CFO. They will assist you in planning your budget, setting your financial goals, assessing possible risks, and devising appropriate strategies.

Your Company is Growing Fast

When you are growing at a rapid rate, keeping track of financials can be a huge problem. You may miss out on important details and possible risks. Likewise, there is a huge increase in the number of partners, vendors, customers, and employees. Managing such large records and accounts can become overwhelming for your bookkeepers. If you hire a virtual CFO, they can become a major helping hand in managing the financial plans during these times of accelerated growth.

You Cannot Understand And Control Your Spending

As a growing business, it is self-evident that your spending is also going to increase. You might have to buy more assets, hire new employees, set up new offices and branches, and subscribe to services. However, if you fail to keep track of your spending, it might severely harm your business. To keep your business functioning, it is necessary to maintain a steady, positive cash flow. When you hire a virtual CFO, they can understand your expense ecosystem and design methods to control and improve it. They can help you optimize your spending on the most important things.

You Need Help in Decision Making

Assistance in decision making is one of the primary reasons why you should hire a virtual CFO. The business world is continuously changing because of globalization and new technologies and business practices. There is a lot of data to understand and comprehend. A virtual CFO can help you understand the laws and regulations in the countries or markets that you operate. They can interpret data about customer behaviour and new trends in the market.

How Can We Help?

From this blog, we have learned when you should hire a virtual CFO and how they can help improve your financial planning and practices.

3E Accounting is a world-class accounting service provider in Hong Kong that can help your business incorporate modern accounting trends and practices. Our top-rated accounting professionals have unmatched experience in this field which allows them to understand all the key developments and risks. Hence, they can devise a solution that fits best for your business.

Even though our services are top-quality, they are still very affordable. Moreover, our guaranteed satisfaction is backed by thousands of our customers worldwide.