Hiring the right chief financial officer is essential for the long-term success of your business. In fact, hiring the wrong one can easily result in a suboptimal level of productivity.
Interestingly, though, virtual CFO services can prove to be just as effective as having someone work in-house at your company. As the COVID-19 outbreak has proven, it’s often favorable to have employees work remotely.
So, what’s the best way to find virtual CFO services? Don’t worry, we’ve got you covered.
Let’s take a look at everything you need to know.
1. How Experienced Are You Working With Companies With Similar Business Models?
This is one of the most important attributes to look for in a virtual CFO as it will often dictate the results you get from working with them. Even if they’re well-versed in your industry, your company’s business model may be something they don’t have much experience working with.
Since your CFO won’t have the opportunity to physically visit your workspace and get a feel for how your internal operations are run, it’s not guaranteed that they’ll be able to provide expert-level advice.
So, it’s crucial that your prospective CFO has a thorough understanding of how your business operates and has worked with similar clients in the past.
2. How Often Will We Be Working Together?
Not every CFO offers their service on a daily basis. Some while some communicate relatively frequently (such as a few times per week), others opt for monthly check-ins instead.
It’s crucial to establish this as early as possible in order to avoid straining your relationship with your professional. For instance, a CFO may be willing to accommodate a client who needs more interaction than they’re used to, but it may interfere with their other projects.
Similarly, a business owner who needs to get on a brief call with their CFO may find it frustrating that they have to wait a certain number of days (or weeks) in order to get in touch with them.
The good news is, though, is that there’s sure to be a virtual CFO out there who offers the type of service you require.
3. What Level of Service Can I Expect?
In order to attain the best results for your business, you’ll need to find a CFO who satisfies the needs you have. For example, someone who needs an entire overhaul of their internal financial management system might not get that level of service from every CFO they speak to.
Additionally, some CFOs only offer expert-level advice in specific areas. If you’re having issues with your current accounting methods and need to employ a virtual CFO to help you, for instance, ensure that you find one who can accommodate this need.
Otherwise, you could significantly delay finding the appropriate solution.
4. How Do You Approach Common Issues Faced in the Industry?
Every industry has its share of common issues that nearly every company in the space will encounter. The cybersecurity industry, for example, deals with finding ways to handle rapidly-evolving malicious software on a daily basis.
Your CFO should have methods to handle relevant issues that have been proven to work consistently in the past. So, they should also have no trouble showing you the other businesses they’ve worked with and their personal contribution to the company’s success.
Keep in mind, though, that the solutions they offer don’t have to be particularly groundbreaking— they simply have to solve the problem and prevent it from reoccurring in the future.
5. How Long Does Your Working Relationship Typically Last With Clients?
Just like how CFOs have a predetermined frequency at which they communicate with their clients, many also have a finite relationship with them, as well.
While there’s a place for both short-term and long-term virtual CFO employment, you’ll quickly run into difficulties if you don’t work with a professional who is able to work within the terms you need.
In general, many younger businesses tend to need a longer period of consulting from CFOs in order to get up and running. This is especially true for businesses that operate within industries that are rife with pitfalls to avoid.
As you may expect, it’s not uncommon for a short-term contract with a CFO to end right as new issues begin surfacing. Many CFOs are generally open to renewing or extending contracts, but it’s not something that can always be assumed.
6. Are Your Services Scalable?
As your company grows, so will the needs of your business. If your CFO’s services aren’t scalable, you may reach a point where you’ll need to outsource this role to someone who can accommodate your company.
This can be somewhat circumvented by hiring a CFO who has top-tier knowledge of how a business in your industry should run. That way, you’ll have a bit more ‘growing room’ before you need to worry about additional services.
Regardless, it’s best to establish how your CFO will handle this scenario before you hire them in order to avoid a lapse in productivity.
Finding The Right Virtual CFO Services Can Seem Difficult
But it doesn’t have to be.
With the above information about how to find the best virtual CFO services in mind, you’ll be well on your way toward making the decision that’s best for you and your company.
Want to learn more about how we can help? Feel free to get in touch with us today to see what we can do.