Financial management plays an important role in any business’s success, but it can be challenging — particularly for SMEs. Virtual or part time CFO services can give you the guidance you need to move your business forward, all without breaking the bank.

What is a virtual CFO?

Virtual CFOs (also known as outsourced CFOs) offer specialist advice for businesses on managing their finances. They operate in a similar way to your typical chief financial officer — except they perform their role entirely remotely.

Your virtual CFO can take on a wide range of tasks and responsibilities including:

• financial reporting
• business strategy
• bookkeeping
• financial planning
• raising capital
• identifying market trends
• KPI tracking and analysis.

So, what are the 10 signs you need a virtual CFO?

How do you know it’s time to hire a virtual CFO? Here are a few telltale signs.

1. You’re time poor

Many business owners manage a heavy workload when they first start out, leaving very little time to keep up with bookkeeping tasks — let alone focus on long-term financial strategy.

A virtual CFO can take on many of your financial management duties for you, leaving you with more time to run your business.

2. You need funding

An experienced financial professional can help you raise capital by providing financial modelling services, complete with cashflow forecasts and in-depth analysis.

A solid strategy won’t just help you convince lenders to invest in your business — it can also make it easier to take your business in the right direction.

3. You can’t get your head around your finances

Working with a virtual CFO can give a clearer picture of your business finances. They can draw up financial reports to help you understand your business performance and offer insights on how to improve profitability.

They’ll also be on hand to answer any questions and address concerns you may have about your finances — no matter how big or small.

4. You have money problems

If your profits are lower than you’d like or you’re struggling with cash management, a virtual CFO can help identify problems and offer solutions to address them.

They may even flag potential issues before they get worse, helping you manage risks and protect your business’s future.

5. Your budget won’t stretch to a full-time CFO

With the average CFO salary well over £100,000, putting a full-time financial expert on the payroll isn’t a viable option for smaller businesses.

A virtual CFO can offer the same expertise at a fraction of the cost. You’ll save on the expensive recruitment process — plus you’ll only pay for services when you actually access them.

6. Your business is growing quickly

If your business is growing faster than expected, you may need to outsource some of the more complicated financial tasks to a specialist.

Your virtual CFO can help you navigate this exciting new chapter in your business journey by taking on your financial reporting tasks for you and offering advice on growing your business sustainably.

7. You have growth ambitions

If you have growth ambitions, you need expert advice and in-depth financial reporting to meet them. An outsourced CFO can draw up detailed budgets and advise you on key business decisions to help you get on the right track.

8. You need flexibility

Maybe you just want short-term advice on how to manage your finances — or perhaps you need an expert on hand to help you with a particular project. A virtual CFO can work around your schedule and your budget to make sure you get exactly what you need.

9. Things are slipping through the cracks

If you find yourself missing deadlines or making errors more often, you may need to bring in a virtual CFO.

You won’t need to worry about non-compliance penalties with a seasoned expert calculating and filing your returns for you.

10. You want to make better business decisions

The better you understand your finances, the easier it will be to make well-informed business decisions. Your virtual CFO can use their financial knowhow to advise you on how to save money and move your business forward.

Watch our video on how an outsourced FD can help your business:

Need a hand with managing your business finances? Contact us or check out our outsourced finance director services to find out how we can help.