VCFO is an acronym for Virtual Chief Financial Officer. Put simply, a VCFO is an on-call CFO that provides an effective way for businesses to gain solid financial guidance and business growth support without the commitment and cost of a full-time CFO.
Our VCFO people are highly qualified financial professionals. Your business shares their services with other companies but utilises a fraction of their time and pays a fraction of their cost.
But cost saving isn’t the biggest advantage – the biggest advantage of outsourcing the CFO function is that your company benefits from the same expertise, analysis, judgment and insight that is available to much larger companies.
Many firms offer a VCFO service but few offer a true VCFO service. The service must offer more than bookkeeping and financial controlling services wrapped up inside a reporting framework – it must come with an ability to provide deep strategic and operational business advice based on what the CFO interprets from the financial position and performance of the business.
The nature of the VCFO role
The nature of the VCFO role is often driven by the size of the organisation and the sector in which it operates but, in broad terms, it comprises responsibility for:
- Financial stewardship – ensuring that balance sheet health and business risk is understood and managed.
- Performance measures – driving business performance consistent with shareholder expectations, dashboard and KPI reporting, and cashflow modelling.
- Transaction support – debt and equity raising support, M&A support, and restructuring services can be provided when required.
- Stakeholder relations – ensuring that investors, banks, clients and suppliers are kept up to date with significant events within the business.
- Accounting and tax support – from tax and financial planning through to payment processing, annual accounts preparation and tax filings.
A Virtual CFO can be a cost-effective game-changer for most businesses, but usually has the greatest impact on businesses between $1 million and $20 million in revenue.
Reasons why you might look for a Virtual-CFO?
Some of the reasons you might look to hire a VCFO are:
- You employ a bookkeeper to look after accounts processing but you’re not getting useful financial and management accounting advice that you can act on to make changes in the business.
- You already employ a bookkeeper, and maybe an accountant, and you want to expand, but feel you need extra support to do so.
- You are facing a challenge that you need help and guidance with. For example, persistent poor liquidity; poor shareholder relations; an acquisition or divestment opportunity has arisen; you need expansion capital; or the bank is putting pressure on you to reduce lending.
- You are a start-up and want an end-to-end transactional accounting service with full record keeping, financial and management reporting together with debt and capital raising support.
Virtual-CFO services customised to what you want and need
Our VCFO service is customised to meet your needs.
On a free and no obligation basis, get in touch with us and we can customise what type of service offering might be best for you.