Virtual CFO services are becoming more and more popular for businesses.
Virtual CFOs are a great solution for setting the strategic direction of a business. They also help businesses gain insight into their financial health and improve cash flow.
A virtual CFO provides the services of a Chief Financial Officer while being cheaper than hiring a full time CFO.
A recent study from McKinsey found that the three key value drivers of CFOs provide are performance management, strategic leadership and traditional finance.
Virtual CFOs are a great solution for small and medium sized businesses who want to improve their performance management, strategic leadership and finance without the cost associated with an in-house CFO.
But what are the qualities a business owner should look for in their virtual CFO?
1) Choose someone you trust
Your virtual CFO will be setting the strategic direction of your business.
That means taking on their advice could be the best thing your business has ever done, but it also could have negative consequences.
If you don’t trust your virtual CFO, you simply will not really let them have enough influence into your business. Your virtual CFO needs to be someone you trust to have key conversations with.
It is human nature that consciously or unconsciously you will not take their advice seriously if you do not trust them. Further, if you do not want someone you do not trust in the first place to be in such a critical role for your business.
2) Choose someone you get along with
You’ll be working very closely with your virtual CFO.
Your virtual CFO will meet with you regularly to set direction and run through business issues such as:
- Budgeting and forecasting
- Financial health analysis
- Expenses analysis
- Process reviews
- Risk analysis and more
As you can see these are all critical business issues that not only will add significant value to your business if you get them right, but will require extensive work to get done.
That means you will be working with your virtual CFO a lot and on important issues. That means you need to go with someone you get along with and can build a strong relationship with.
3) Choose someone who understands your business
You need an expert.
Maybe this one should say “choose someone who understands your business, and understands many other businesses.”
You need a CFO who understands business and understands how to take your business from where it is to where you want it to be.
That takes not just one but many a variety of skillsets, and it also takes a lot of understanding.
Your virtual CFO will be helping you improve your business across many areas, so it is critical they understand your business in the first place.
If you’re interested in virtual CFO services for your business get in touch with us for a no obligations chat.I’m interested in CFO help