Think about all the things you need to do to keep your business running smoothly.
There’s bookkeeping, invoicing, and paying bills. Then there are marketing and sales initiatives, as well as operations management. It could be difficult to wear all of these hats at once, which is why so many businesses turn to virtual fractional CFOs for help.
You might think hiring a fractional CFO is only for businesses that are doing really well and don’t need any help. But all businesses, no matter the size, need a financial advisor to assist them in making smart decisions with their business and money—especially if your business is mission driven. So how can virtual fractional CFOs benefit your business for good?
What can a virtual fractional CFO do for your business?
Virtual fractional CFOs offer the same services as a traditional CFO. Some of the services that a virtual fractional CFO can provide include:
Improving financial strategy and performance. They can help develop a financial strategy for your business (e.g. budgeting, assessing financial risks, increasing profit).
Budgeting and forecasting. They can create a realistic budget, implement cost saving measures, and forecast cash flow for more informed decisions.
Financial analysis and reporting. They provide accurate financial analyses and reports to provide insights into the company’s financial health.
Preparing for board meetings. They analyze financial statements and data and present it to the board to inform them of the company’s current financial performance.
Implementing financial systems and processes. It includes setting up accounting software, bookkeeping, and payroll.
Business scaling. A virtual fractional CFO can grow your company, allowing smoother transitions without disrupting ongoing operations.
Maintaining relationships with external parties. They communicate with banks, auditors, lenders, and investors regarding the company’s financial status.
Diverse talent and services. By breaking the geographical barrier, you can hire top talent from anywhere in the world and access their financial experience and expertise.
What are the pros and cons of hiring a virtual fractional CFO?
Getting a virtual fractional CFO is a significant investment—and you don’t want to hire one only to find that you wasted time and money.
Working with a virtual fractional CFO creates higher profits for less cost.
Since they are only working part time, it might lead to less commitment.
Virtual fractional CFOs maximize efficiency.
They have less time to refine processes due to being hired on a short term basis.
Outsourced CFOs can provide outsider’s perspective, which is valuable in making competitive financial decisions.
Given their experience in multiple industries, they may not be an expert in your industry.
It’s easier to scale up on virtual CFO services.
A virtual fractional CFO may be less experienced than a traditional CFO.
Without the geographical barrier, you gain access to more diversity and creativity.
Access to a rich network is often part of the deal when hiring a virtual fractional CFO.
How can a virtual fractional CFO help your business for good grow and succeed?
Profitability is crucial for every business, but it’s even moreso for businesses for good—after all, how do you expect to spread your impact if your business is on the rocks?
Understanding the value of a virtual fractional CFO could bring your business to the next level. It could elevate your business and spread your mission further so that you could reach the people who truly need the impact you’re trying to make. For your mission driven business, the diversity and financial expertise that a virtual fractional CFO is capable of providing could be the key to growth and success.
Virtual fractional CFOs can increase profitability and drive sustainable growth—both extremely important if you’re seeking to make an impact on the world! If you want to learn more about how a virtual fractional CFO can benefit your business for good, reach out to Profit Reimagined Inc.
We at Profit Reimagined Inc. pride ourselves on our curiosity, expertise, and empathy. We take the time to understand how your social impact businesses work and why you do what you do. Then, we use our expertise to amplify your social impact, create a business you love, and maximize your profitability.