Does My Business Need a Virtual CFO?
Now that you understand what a virtual CFO is and what some of the benefits of hiring one are, the next question you’re naturally asking yourself is, is it the right solution for me?
Well, the first thing to know is that a virtual CFO is not a good solution for all businesses. Some businesses simply don’t yet need high-level strategic advice. Another scenario where a virtual CFO may not offer value is when a company’s finances are not yet in order. If that’s your situation, take care of that first by engaging an outsourced accountant to organize your accounts and give you a clear and stable understanding of your financials.
Once you’re confident about your financial statements and accounting practices, you may be ready to hire your own CFO. Look for some of these common indications that it’s a good time to consider hiring a virtual CFO for your business.
Your business is becoming more complex
When it’s just you working in your basement at midnight, your finances are probably simple.
They get more complex as you add more equipment, employees, suppliers, vendors, contracts, and other components to the business. If your growth has complicated things to the point that a bookkeeper alone doesn’t feel like a sufficient financial solution, it might be time to hire a virtual CFO.
You’re experiencing rapid growth
Growing quickly is a good thing — until, suddenly, it’s not. Rapid growth can put your financials into a tailspin, especially if you’re not prepared. A virtual CFO can help you navigate periods of accelerated growth and situate the best systems for the next phase of your business. To do this, the CFO typically doubles up on their handling of potential risks while simultaneously keeping a finger on the pulse of resources and cash flow to manage the influx of revenue.
You want to find and exploit opportunities or fortify defenses
Now more than ever, business leaders are observing one another. They see that economic destabilization can crush one business, while another one uses volatility like rocket fuel. A virtual CFO shows you how to do both — find low-hanging fruit in an untapped market while bolstering the protective measures that allow for agility in times of economic trouble.
Your financials are unfavorable, and you’re not sure why
Nearly all companies go through unfavorable periods. It’s a part of doing business. The key is to understand why they’re happening so you can take the necessary steps to right the financial ship.
If you’re struggling to maintain or grow profitability, and you don’t know why, a virtual CFO may be the right person to add to your team.
You lack the detailed financial understanding needed to make decisions
At Ignite Spot, we’re all about informed decision-making. We walk you through the progression of increasingly reliable, robust accounting practices — from organizing your bookkeeping process and ledger transactions all the way to advising your mergers.
Each step you and your Ignite Spot CFO take together gives you more and more financial insights into every aspect of your business’s money-making engine. You may need better visibility into corporate spending as GlobalEd did. Or you may need to know exactly where to cut costs to survive a global health event, as Kaka’ako Kasuals did.
Your scenario may be so unique it has no precedent, and only specific financial clarity can help. The good news is that our virtual CFO team’s main priority is to give you that visibility so you can make sound business decisions.
How to Get Started with a Virtual CFO
If your foggy understanding of your business’s financials inhibits your ability to make decisions, working with a virtual CFO may be a good idea.
To take the first step in exploring a virtual CFO relationship, schedule your free virtual CFO consultation with Ignite Spot today.