It’s not unusual for smaller businesses to be short on time and resources when they are going through a growth phase. When you’re focusing on how to take your business to the next level, some of the day-to-day or administrative tasks may not be at the very front of your mind. However, this doesn’t mean you should forget about some of the most fundamental tasks – like accounting and financial management. If you don’t have access to professional financial advice or have your own in-house Chief Financial Officer (CFO), you may want to consider reasons to hire a virtual CFO.
What is a virtual CFO?
A virtual CFO is someone who will take on all the tasks and responsibilities of a CFO, without the large expense of having someone as a permanent member of your team.
They provide a way for smaller businesses to get a high level of professional financial support, even if they can’t afford to hire a full-time CFO.
A virtual CFO will usually work remotely and part-time, helping with some of the following tasks:
- Monitoring the general financial health of a business
- Provide financial support and insight on all finance-related decisions
- Back-office tasks like managing accounts, annual budgets, and financial forecasts
What are the benefits of hiring a virtual CFO?
Hiring a virtual CFO can provide a lot of benefits to smaller businesses, both in terms of aiding your financial growth and helping take some of the pressure off your shoulders.
A virtual CFO is an affordable and efficient alternative to hiring a full-time CFO and can help:
1.Improve your financial health
The financial health of a business is extremely important and, with a virtual CFO at your side, you can ensure that all your day-to-day finances are watertight.
Your virtual CFO can help you with everything from managing expenses to putting together your annual reports, things that would take you a long time to complete by yourself.
They’ll also be able to provide much-needed support and guidance to make sure your business is as profitable as possible.
2. Help boost business growth
Using a wealth of experience, your virtual CFO will be able to advise you on the best financial strategies to increase profitability and cash, putting in place everything you need to experience exponential business growth.
They can help you to raise funding, scale your business sustainably, and set you up for the growth that you dreamed of.
3. Provide valuable business insight
Finally, your virtual CFO will be able to provide valuable business insight that can drive forward business growth.
Through analysing your accounts, a virtual CFO will be able to guide you through important decisions and make the most of all the financial opportunities coming your way.
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Need further help?
At Direct Peak, we provide hire a virtual cfo service along with accountancy expertise to smart modern companies. To find out more about our services and how we can help, please get in touch.
Direct Peak provides a dedicated business tax accountant, who will prepare your annual accounts and tax returns. They will be on hand to answer any tax queries you have.
Your business tax accountant will ensure that the company is set up in the most tax-efficient way and that you are claiming for all the correct expenses to maximise your earnings.