The Term CFO Stands For Chief Financial Officer, And This Management Function Is Essential To The Effective Functioning Of A Business.
Of the many functions provided to management, the CFO’s role include at least the basics of:
- Taking responsibility for the timely and accurate reporting of financial performance, condition, and cash flows of the business.
- Making sure that all federal, state, and local governing regulations, laws, and taxes due are in compliance.
- Assisting management in the development of operating strategies for improving the present, and planning for the future.
- Designing and monitoring controls for the performance of business and internal operations of the business.
Virtual environment means that all company data, documents, reports, insights, and action plans are available through a Browser, on the web.
This includes securing all information by requiring a single access point, password protections, and distribution access controlled by the business, usually though the CFO and his team.
Virtual CFO Services Can Be Provided By The Company’s Own Internal CFO And Staff, Through The Use Of A Virtual Platform, Or Externally Through An Outsourced Environment Of Qualified Client Accounting Outsourced Providers.
The outsourced virtual CFO model has taken off in recent years as robust platforms have entered the markets with pricing that allow businesses to utilize expensive SaaS providers at a fraction of the cost, and get provider services included in monthly service fee.
- Bundled services at an agreed monthly fee instead of hourly rates.
- Improved access to financial reports, and documents online from any browser.
- Mobile collaboration on current cellphones to approve bills, pay bills, review reports, and process orders while on phone or tablets.
- Instead of employees providing internal activities, you can now pay for what you need, without permanent overhead and benefits.
- Include in your management team an experienced finance and accounting professional that would not be available to you as part of an integrated services relationship.
- Many times, using a Virtual CFO on an as needed basis is much more economical than employing a true CFO internally at today’s market rates.
Should You Pursue The Outsourced Virtual CFO Service Model, There Are A Number Of Deliverables You Should Expect:
- Timely reporting available in a few days after closing the month’s business activities.
- Real-time, anytime access to financial and performance reports.
- Insights extracted from performance reports that highlight areas of concern, variances from plans, and indicating follow up needed for improvement.
- An ability to discuss in person or virtually through video/conference call access action steps needed for improvement.
- An ongoing service improvement plan that outlines new services indicated, dashboard design to further drill down on activities to be monitored and measured, and to offer updated capabilities as available in the virtual platform and environment.
- Pay only for what you need. With experienced CFO’s, finance executives, and CPA’s commanding salaries in the mid-six figures ($150,000-$250,000 and more), virtual providers run by these executives are allowing virtual services at attractive prices, and are becoming more widespread.
This virtual environment enables the outsources service, with focused attention on results and outcomes, mentoring and planning, and proven experience, without permanent overhead and compliance costs.
About The Author
Stephen Gross is a big picture thinker and connector, with 40 years of rich and diverse experience in the C.P.A., business consulting, and venture capital worlds. Steve was an early adopter and evangelist of cloud-based accounting, as well as the concept of a virtual C.F.O. or Controller as a method of outsourcing the position in small businesses and startups. Steve brings his extensive experience as an entrepreneur, board member, and business advisor to his role at TCFOS. Learn More About Steve…