Why a Virtual CFO is a great choice if you are a Small to Medium Business?


Having commercial guidance that a senior financial expert can provide to get your business from where you are now, to where you want to be is one of the smartest investments a business owner can make. As a small to medium-sized business (SMB) you might be missing the strategic advantage that comes with having a CFO.

While a CFO plays a vital role in a company by providing financial and strategic management services, it can be difficult for SMB to afford a full time resource.  An experienced part-time Virtual CFO is an alternative and affordable solution  that can help accelerate your financial growth and business success.

Here are our top 6 reasons why you should hire a Virtual CFO

  1. Strategic and financial guidance in times of change
    As a result of the current economic environment, some businesses will prosper in unexpected ways whilst others will need to plot their way very carefully to survive. Both ways, the challenges are many and varied so businesses are required to show flexibility, creativity and agility.

    Quick, decisive and educated decisions around the financial and strategic management of your business during these uncertain times is imperative.  A Virtual CFO can add this depth of knowledge at the executive level of your business at a speed in which the market requires it. 
  2. Financial modelling
    In times of disruption, being able to have real-time analytics around the key metrics of your business will increase the efficiency of decision-making. 

    A Virtual CFO can help with developing a comprehensive modelling and internal reporting framework to allow you to continue to drive business growth. They can provide you with models that are robust, sophisticated and industry specific ensuring you are measured against key financial metrics for your industry.  
  3. Streamline your finance function
    Creating efficiencies within your finance function helps with driving accurate and current financial information each and every month.  A Virtual CFO can complete a thorough review of people, systems and finances and implement changes that can benefit the business in the short and long term.
  4. Cashflow management
    With some businesses losing up to 75 percent of their revenue in a single quarter, cash isn’t just king it’s now critical for survival.

    ou should expect your Virtual CFO to analyse and manage your business cashflow
    in order to ensure maximum efficiency and liquidity for your business. An experienced CFO can help you avoid mistakes than can be costly and help ensure you keep on top of your business’s finances so that there are no surprises and you remain liquid.  
  5. Supporting the executive team
    It may be that your executive team are lacking structure and are all busy managing their day-to-day responsibilities rather then having the time to think about big picture planning. 

    A Virtual CFO can establish a monthly board meeting, giving structure and formality to your leadership team. In doing so, your Virtual CFO can provide key commentary and insights into the business performance and strategy, as well as take minutes and drive action items each month. The role of a Virtual CFO should be strategic and aligned with supporting the Executive team to achieve significant profit growth.
  6. Specific transaction events
    You may be engaging in transactional activities that require the support of a finance executive. 

    A Virtual CFO would have the experience to help you navigate various types of transactions so that the outcome is to your benefit. Those specific transactions may include  business acquisitions and mergers, capital raising, valuations, due diligence, ESOP arrangements and also the implementation of specific strategic CFO initiatives to support your business growth.

Related: What is the difference between a Virtual CFO and a Financial Controller and why to engage one?

Tap into a team of highly skilled Corporate Advisors and Virtual CFOs

Azure Group delivers strategies that empower our clients success and have witnessed our clients grow year on year by an average 23%  and know our hands on approach contributes to this success.

Our team consists of highly talented and experienced senior finance executives who each have a substantial commercial background and have worked with various sized businesses across a wide range of industries and in a multitude of countries. Speak to us.

Have you noticed our #FridayExpertTips... here's one that relates to #CoVID-19: Business Planning

"In times of crisis we often focus on ourselves and our own issues. However, in order to fully understand the long and short term impacts on your business, you have to understand the impact on those around you – your team, business partners, customers, industry, niche... and adjust accordingly."

This information is accurate on the day it’s published and is subject to change as the situation around Coronavirus (COVID-19) evolves. Our conclusions may not be valid if there is any change in those facts, circumstances and assumptions.  Accordingly, neither Azure Group Pty Ltd nor any member or employee of Azure Group, undertakes responsibility arising in any way whatsoever to any persons in respect of this alert or any error or omissions herein, arising through negligence or otherwise howsoever caused.

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About Author

Azure Group
Azure Group

Azure Group is the leading Chartered Accounting, Business Advisory and Strategic Advisory firm supporting the growth & success of fast growing entrepreneurial businesses.

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