An expert CFO has an eagle’s vision without being dreamy. Thus, for a zero profit business owner, a virtual CFO is a boon in disguise. He bridges the gap between operational, strategic, and financial aspects to achieve long-term financial goals.
A virtual CFO can help companies making zero or minimal profits in several ways:
- Supervises Accounts: Supervises the accounting and financial team for ensure that the financial figures are a true reflection of an organization’s current performance.
- Manages Internal Controls: Keeps a constant check on internal controls to protect the company against leakage, deficit management and sometimes weak organizational structure. This helps in evaluating the position of an organization’s performance over a period of time.
- Influence Decision-Makers: Helps top decision-makers to visualize the financial future of the company through his business intellect, accurate financial analysis and statements.
- Mitigates Financial Risks: Prevents debts and heaping up interest rates by helping the management make informed decisions about future loans and current business financial condition. Also, debt planning by the CFO helps pay off debts timely without putting the company at risk in future.
- Bring More Investors: Helps stakeholders and investors visualize the potential of a company to convince them for financial investment, increasing incoming cash flow.
- Develops a Good Financial Base: Sets up a strong financial base for the company that is vital to the success of an organization.
- Connects with the Top Management: Enhances and maintains very cordial relationships with the decision-makers and managers of the company to achieve a common financial goal.
- Does Better Financial Planning: Ensures improved financial planning and management for the upcoming fiscal year by setting up certain policies and procedures and maintaining balance sheet records including the assets and liabilities of the company.
- Encourages Risk-Taking: Encourages decision-makers for taking risks by devising strategies with minimal to zero risk involved. Thus, plays a vital role in helping CEOs take risks backed by strategies for growth of a company.
- Boosts Revenue Generation: Helps in boosting both top and bottom line revenue figures for companies facing tough competition with a limited capital. A CFO plays a crucial role to open new avenues for a company and propel growth.
Hiring a virtual CFO is a more prudent decision than keeping a bookkeeper, finance manager, and controller separately. Because at the turn of the century, competition has gotten tough and stakes are high. Every company’s end goal is achieving a profitable business, but this seems impossible without a CFO in present times.
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