A traditional CFO has plenty of responsibilities. They are the head of accounting for their company and answer to shareholders, board members, and employees. This means they must be well integrated and know the ins and outs of the company like the back of their hand. The CFO is responsible for the financial decision-making and planning of the company’s future, which involves an entire team working with data to provide updates and meaningful reports and ensuring compliance with the law.
A vCFO offers all the knowledge and expertise of a CFO and delivers it when the business needs it – only paying for the functions that they need at the given time. vCFO’s provide small and medium-sized businesses with expert-level advice, financial planning, strategising and reporting – all without the price tag of an internal CFO.
An in-house CFO is expected to work full-time and to have the knowledge and experience to handle all financial aspects of the business. The time that it takes to fully onboard a CFO so that they have a thorough understanding of the business and its financial structures could be a 2-3 months process. On top of that, the requirements of a full-time position such as salary plus sick, personal and vacation leave are extremely costly.
A vCFO offers all the benefits of a CFO except the remuneration duration and specific services are chosen.
Many small and medium-sized businesses do not need a CFO every day of the week. What they really need is great advice, financial planning and strategizing from a financial expert who will help them grow their business. Most of these businesses might only use a vCFO for a few days per month. This means they can experience all the great benefits of a CFO, without spending months onboarding them and having to pay an executive salary.
Support of a team
The financial aspects of running a business are very complex and it’s difficult to have everything covered by an individual. Your in-house CFO might be able to handle some things on their own and be good at speculating the future, but if there’s a lack of in-house team members to assist the CFO, they can struggle to keep up with market trends and the problem solving you need.
When you bring a vCFO on board, you’re also accessing an entire team of financial professionals who combine their individual skills and experience to make better decisions for your business.
Traditional in-house CFO and virtual CFOs each have their own pros and cons. However, the rapidly changing world is becoming more connected through cloud-based services. SMEs have the flexibility to access expert financial advice without the lengthy onboarding and executive salary of an internal CFO.
The good news is, this is all possible for you to leverage with Lucent Advisory’s Virtual CFO services. Our cloud-based services mean you’re never too far from a vCFO.