Colour Logo of Fortius Consulting Services

The What, Why, When & How Of Hiring Virtual CFOs For Your Business

April 25, 2023
Fortius Team

Has your business in UAE come to a point where you need an extra pair of helping hands to navigate those periods of accelerated growth? It is understandable if you are not yet ready to hire a full-time Chief Financial Officer, but yet you need an expert to handle the financial dealings.

Say hello to the Virtual CFO services or CFO. Our blog serves as a detailed guide that answers all your “what, when and how” questions related to Virtual CFOs. So, read on.

Who is a Virtual CFO?

The Virtual Chief Financial Officer is an experienced professional outsourced by a service provider. His prime responsibility is to assist business owners in financial matters and deploy their skills and knowledge whenever necessary. The term “virtual” CFO itself denotes that the expert works remotely, and the job is typically on a part-time or ad-hoc basis.

Once hired, vCFOs undertake a multitude of responsibilities that include:

  • Compliance maintenance with all state and national financial laws and regulations.
  • Providing insights for business strategy development and maintaining timely reporting of cash flow within the company.
  • Monitoring and implementing internal and external controls for your business workflows.
  • Consistent bookkeeping to derive valuable and actionable insights for better business development.
  • Regulating the financial flow and cash deployment to save finances and ensure efficient work management.
  • Strategic planning and assistance in times of major investments, mergers, and acquisitions.
  • Enhancing your competitive edge by analyzing business expansion opportunities and niche avenues.
  • Ensuring harmonious employer-employee relationships and bridging the gap between stakeholders and the management.
  • Establishing key metrics and analyzing the results, as well as creating a process for the organization to run efficiently and effectively.
  • Drafting the annual budget and developing futuristic financial plans for your company.

Hiring a vCFO is a sensible move that gives you access to experienced professionals who provide you with the same expertise and services from anywhere in the world. They can also provide more flexibility in terms of hours and availability, which is ideal for businesses that require financial advice on an as-needed basis.

7 Ways Virtual CFO Services Can Benefit Your Company

1. Better risk management

The success of every business depends on how well it dodges or manages its risks, and vCFOs make valuable contributions. They will walk you through every step of every decision, from hiring or buying new equipment to recruiting new staff. They will use their expertise to assess the risks associated with all your business decisions.

2. Cost-effective expertise

Having a CFO under your payroll costs quite a lot of money. Considering their role and responsibilities in your organization, this designation is more of an investment that all companies cannot afford. However, a vCFO can offer the same level of expertise at a lesser pay because they are not full-time employees. If you are looking for dedicated expertise that fits your budget, a VCFO is an apt choice.

3. Full-fledged services

Although they work part-time or on an ad-hoc basis, a vCFO’s job focuses on the following:

  • Monitoring your company’s financial health and performance
  • Providing guidance and insights regarding financial decisions
  • Managing books and conventional duties relegated to CFOs

4. Bias-free business perspectives

A third-party part-time employee can offer a different, bias-free perspective regarding business decisions than an in-house staff. Considering how much impact the virtual CFO has on the organization, they are truly worth the investment.

5. Provides general and specialized expertise

Most vCFOs have the experience of working with multiple companies across a diverse range of industries. Although every industry has a unique focus, virtual CFOs bring extensive financial expertise and generalist knowledge across multiple industries. They understand the financial complexities of different industries and can provide valuable insights to help their clients make more informed decisions.

6. Diligent resource allocation

Misallocation and misuse of resources are one of the main blocks for business progress. However, a VCFOs expertise in diagnosing your financial status will help identify waste and free up critical resources at the right time. The guidance they provide in this context is valuable in maximizing resources.

At some point in your business' growth trajectory, a virtual CFO will be a necessary upgrade. But how will you identify that you have reached that point in your business?

4 Signs That Indicate The Need For Virtual CFO Services

1. You are constantly in need of cash.

Most businesses are well aware of the company’s cash balance and when it waxes and wanes. However, not all of them are diligent in tracking the cash flow. If this is the case, hiring a vCFO will give you more cash stability and the confidence you require for decision-making.

2. You are not on top of your financial processes.

As businesses grow, so do your financial transactions and accounting complexities. When the numbers become too much, a vCFO can step in and derive the financial information you require to run your business.

3. You need a financial “listening ear.”

Businesses that plan better perform better. You may have a dozen financial ideas and plans, but you need an expert to hear you out. In this case, vCFOs can easily stay in touch with you to choose, implement, track, and measure your plans and their results. They can also warn you about the risks involved.

4. You want to focus more on your business.

It is common for business owners to spend a great deal of time working on their business, especially their finance books. This becomes unavoidable when you feel your bookkeeper or accountant is not giving you adequate information. Here, a vCFO can step in and free up your time and dispel any worries you may harbour.

Let’s say you are now convinced about investing in a virtual CFO. But you need to hire the right person to make it worthwhile. Here are some of the basic aspects to look for when recruiting a vCFO:

  • Certifications and qualifications in accounting and finance.
  • Industry expertise and, even better, niche expertise.
  • Knowledge and skills to implement suitable systems to protect your finances.
  • Work efficiency, integrity, and transparency in communication.

CFO: Your answer to healthier finances & better business progress

Hiring a vCFO is a one-stop solution for multiple requirements. They are cost-effective, flexible, and accessible powerhouses of financial experience and expertise. If you need a virtual CFO for your UAE-based business, now is the time to hire the right person. Fortius Consulting offers Virtual CFO services in UAE at affordable prices. Call us to know how you can hire your vCFO at the earliest.

Share the Post :