Today, VCFO services are increasing with popularity. Due to pressure to cut in-house staff members and outsource where possible, hiring VCFO services is a more affordable and efficient option for business owners.
VCFO services stand for a virtual chief financial officer, and many companies are turning to them to help the business run smoothly.
If you’re considering VCFO services, you may be wondering how the services run.
What do VCFO services offer? How much do they cost? What are the benefits?
That’s where we come in to help. Keep reading to understand more about VCFO services.
Why Hire a VCFO?
There are many reasons to get virtual accounting services. If you’re a growing service-based company that requires expert financial advice, but you can’t afford a full-time chief financial officer or controller, hiring a VCFO is an excellent idea.
If you run an existing business and you’re hoping to replace an existing CFO, but you don’t need an on-site staff member daily, a VCFO is also beneficial.
One of the best benefits of hiring a virtual CFO is that you can gain all the services provided by an internal CFO or financial team but at a more affordable cost.
Many on-site CFOs charges expensive fees, but a VCFO is significantly cheaper. By opting for a monthly retainer, business owners can achieve a higher level of cost-effectiveness. In time, this offers a greater return on investment.
However, while an outsourced CFO is less expensive than an internal one, it doesn’t mean that you have to sacrifice on quality. Many expert VCFO’s have tons of business and finance experience and knowledge to help your business accomplish its goals.
Likewise, in any business, distractions are common, and it’s easy to lose attention and focus. However, hiring a VCFO can give you fresh and knowledgeable insight into your business. Quality VCFOs often deliver unbiased services and use their experience and expertise to drive companies towards success.
What Do VCFO Services Offer?
There are many services that VCFO’s offer. A VCFO can manage bookkeeping to deliver reliable data and interpret the results. This provides valuable insight to help steer towards your business goals. With this interpretation, business owners learn where, when, and how to guide their team.
Likewise, a VCFO can help as a sounding board, coach, or guide. If this is the service you require, be sure to look for a seasoned expert who you can trust. By choosing the right person, you’ll end up with a valued team member who can help you reach your business and career goals.
A VCFO can also place the finance function as a competitive benefit. Think about it – if you’re financially frustrated, it’s likely that your competitors are too. However, chances are, your competitors aren’t actively looking for a solution.
An excellent VCFO can help you reduce waste, deploy cash, and seek opportunities for more outstanding production. With the help from a VCFO, you can progress ahead of other organizations in your niche.
Most virtual CFOs also always offer cash management and planning, strategic planning, annual budgeting, development of annual strategy, identifying key metrics, and interpreting financial results.
What Are the Types of VCFOs?
Depending on your needs, there are different types of virtual CFOs to partner up with a team of accountants, CPAs, and tax partners. As there is a lot of redundancy, nothing ever stops, even when someone is sick or takes a vacation.
A full-time VCFO service often includes weekly meetings, bank relationships, forecasting, company-wide KPIs, and plenty more.
Many VCFO offers part-time controller services to help you manage your business to success. If you’re a small yet growing service-based company that requires expert financial advice, yet you can’t afford a full-time controller, a part-time role may be ideal.
Controller services often offer expert help and support for tax returns, strategic planning, accounts payable, and exhaustive forecasting. This is all usually at a significantly reduced cost of a full-time controller. If you’re small but growing, a part-time controller is beneficial for your future growth.
Many businesses also opt for transactional VCFO services. With transactional services, you’ll be provided with traditional accounting services. This includes preparing monthly financial statements, including balance sheets, industry financial comparisons, plus more.
Transaction services don’t just help you with tax returns either, but you’ll also have guidance on strategic planning.
How Much Does a VCFO Cost?
The fees for hiring a full-time in-house CFO can range from $175,000 to $480,000 per year. Plus, you’ must consider vacations, bonuses, and other benefits.
A VCFO, on the other hand, delivers experienced strategic support at an inexpensive fixed cost. Depending on your needs, VCFO packages cost around $1500 per week, which is less than $80,000 per year. To learn more about how much our VCFO packages cost, have a look at our pricing page and book a free consultation for a quote.
Are You Ready to Hire a VCFO?
As a business owner, hiring a VCFO. Compared to in-house CFOs, virtual help is significantly more affordable, yet delivers results just as well.
Learn more about our controller and VCFO services here and discover how we can provide you with expert knowledge and assistance to help your business grow.
Our VCFO Services help you identify your business goals and assist you in achieving them. That’s whether it be from an operational, strategic, or financial standpoint. Get in touch today for a free consultation and quote.