4 Ways to Scale Your Business with Virtual CFO Services

4 Ways to Scale Your Business with Virtual CFO Services

Subscribe to our blog!

1. Build your team.

CFOs are expensive (think six-figure salaries), but their services don’t have to be out of reach. Instead, virtual CFO services provide an option for businesses to get CFO expertise they normally can’t afford.

 

On the Inside—from the Outside

Virtual CFOs are the same as any other CFO, but they specifically work outside your team. Instead of being an executive on your payroll, they operate as a service and an extension of your business.

Serving your bottom line and your budget, an outsourced CFO is a strategic business partner who works closely with your business on your terms, usually part-time and/or on a contract basis.

 

Staffing for Growth

Do you need to hire more staff now? Maybe you just want to plan for the future. Whichever the case, an outsourced CFO helps you map your staffing needs to create a scalable solution. This includes helping you plan when and how to phase them out too. As you grow and your needs change, your CFO can help with your transition from virtual CFO services to an in-house position.

 

2. See your virtual CFO as a growth partner.

You want to take your business from point A to point B but have no idea how to get there, between managing everyday tasks and the steps to take to push the envelope. Virtual CFO services grow your business by providing advice on how to invest your time and money, with a focus on where you are now and where you want to go. 

 

Preparing Financial Statements and Reports

Virtual CFOs take the headache out of making sense of your financials, putting in the work to improve the timeliness and quality of financial information. With the right partner by your side, your financial reporting gets completed faster, and forecasting and analysis are received quicker. 

An outsourced CFO provides actionable financial data for organizational leaders, informing strategic decisions. This can come in many forms:

  • Cash flow management

  • Budgeting

  • Forecasting 

Regardless of the initiative(s), virtual CFO services do the legwork to help business leaders make better decisions about spending, including where to cut or improve expenses.

 

Aligning Strategy

Speaking of managing expenses, any CFO worth their salt knows there’s a smart way to do this. Virtual CFO services work to stay realistic, aligning your organizational goals with your actual capabilities and resources. With a full picture of your organization, they can further advise you on how to manage and allocate company finances as well as how aggressively you should approach growth opportunities.

 

3. Monitor business performance.

With so much going on day in and day out, it’s probably challenging to keep up with how well your business is performing. Are you hitting your goals? Bringing in more than you spend? A virtual CFO keeps their eyes on these moving parts for you, so you can focus on the job in front of you.

 

Managing Key Performance Indicators (KPIs)

What’s your yardstick for success? Virtual CFO services identify KPIs, offering advice on how to optimize operations. Your KPIs can’t be random—they need to be linked to a long-term strategy and represent tangible goals so you can measure progress.

 

Enhancing Cash Flow

You know your cash isn’t infinite. That’s why your CFO ensures you're spending money properly and planning appropriately. The reality is that up to 82 percent of businesses fail due to ineffective cash flow management, according to one widely cited study, underscoring the importance of keeping an eye on your cash position. That’s where a seasoned CFO can come in and harness your cash management—with special emphasis on elements such as liquidity and tax planning—and work to improve your cash position.

 

4. Manage debt.

Have a little debt monkey on your back? Virtual CFOs can calm that fella down. Your virtual CFO keeps tabs on your financial picture, ensuring you have the funds to cover expenses and debt payments.

 

Developing Debt Reduction and Repayment Plans

Whether it’s outstanding vendor obligations or something bigger, debt can add up and quickly become a problem. But a CFO partner works to control the storm with strategies such as debt financing. This keeps you in control of your business and could include one or more of the following: 

  • Vendor financing 

  • Customer financing

  • Senior debt

  • Subordinated debt

Stay out of the red with a partner who can help you navigate debt reduction. Virtual CFO services give you what you need to sail smoothly—not just keep you treading water. 

 

Plan your future with a virtual CFO.

Having a CFO partner for your business can help in so many ways, and you don’t have to bear the expense of hiring them in-house. From growing your team to growing and monitoring your business, virtual CFO services can help chart a course for your future. 

Ignite Spot bridges the gap, giving you access to expertise that only multimillion-dollar companies used to have. We work with you remotely and on your schedule with a 100 percent U.S.-based team. Discover how virtual CFO services can help your business thrive.

Strategic growth opportunities should be available regardless of your company’s size.

Related Posts

How to Measure Business Performance in 3 Steps

How to Measure Business Performance in 3 Steps

The Role of a CFO in Mergers & Acquisitions

The Role of a CFO in Mergers & Acquisitions

How to Effectively Integrate an Accounting Controller into Your Finance Team

How to Effectively Integrate an Accounting Controller into Your Finance Team