Why You Need a Virtual Fractional CFO and Why It’s Better than a Traditional CFO
As a business owner, you know it’s important to make smart financial decisions. But sometimes it’s hard to know where to start or whether you’re making the right choices. A virtual fractional CFO can help navigate the financial waters and make sound decisions for your business.
But why would you need a virtual fractional CFO? Let’s explore the reasons why you might need a virtual fractional CFO onboard and why it’s a smarter investment than a traditional CFO.
What is a virtual fractional CFO?
A virtual fractional CFO performs the same fractional CFO services as a traditional CFO but they do it remotely on a part-time schedule. They will handle all the financial components of your business—all without ever coming into the office!
Why should you hire a virtual fractional CFO rather than a traditional CFO?
There are many benefits to hiring a virtual fractional CFO instead of a traditional one, such as:
Less expensive. Virtual fractional CFOs cost less than a traditional, full-time CFO.
Experience in multiple industries. Virtual fractional CFOs have worked with different businesses in multiple industries, which leads to multilayered insights and networks.
Standardized formatting and reporting. Given that they have worked in multiple industries, they have likely adopted the most widely accepted best practices for making reports and deliverables.
Smaller learning curve. Virtual fractional CFOs are used to entering a company mid-process, so it doesn’t take much time for them to perform at maximum capacity.
Lack of geographical barriers. Hiring a virtual fractional CFO gives you access to top talents around the world since you’re not limited to hiring within your area.
When do you need a virtual fractional CFO?
Here are some of the signs that it’s time to start looking for a virtual fractional CFO.
Problems with finances and profitability
Is profitability not at a desired level? Sounds like you need some clarity on the state of your finances. When business growth and profitability have become stagnant or slowed down, virtual fractional CFOs can figure out what’s causing issues and solve them.
Rapidly scaling business
When you’re experiencing rapid growth, the complexity in the business increases. Without solid systems in place, things could easily spiral out of control. Virtual fractional CFOs can smooth out complications in your accounting and finances and restructure your finances if needed.
Issues with financial planning
Having a financial model is critical to ensure your business model and finances are stable and sustainable. With a virtual fractional CFOs financial expertise, they could ensure the financial model is working well so you can increase revenue and scale your business sustainably.
Execution of a growth strategy
Virtual fractional CFOs aren’t limited to financial aspects—they can also guide you on assessing how your business is doing and how to take it to the next level. Not only could they provide their financial and strategic perspective, but they can also help you in implementing those plans.
Lack of time for financial duties
There comes a point where you can’t have your hands on everything, especially if your business is growing. Offloading financial duties can help ease your mind and free up your time to focus on other value-adding activities.
If you want to learn more about hiring a fractional CFO and how to get optimal results to help more people, reach out to Profit Reimagined Inc. Our team would be happy to speak with you.
A virtual fractional CFO is perfect if you want to take your business to the next level without breaking the bank. If you want to learn more about hiring a virtual fractional CFO and how to get the right person, 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.