CFOs (Chief Financial Officers) are one of the most important roles in any business – assisting with day-to-day business operations as well as contributing to all the nitty gritty financial decisions a business has to make. As integral as they are to all businesses, modern times have also called for changes to the way CFOs work within businesses.
From in-house, to outsourced, to completely online, businesses now have the option to work with virtual CFOs over hiring professionals in-house. As more and more businesses make the transition into online operations and virtual communication, the benefits of virtual CFOs versus in-house CFOs have also come to light.
Guaranteed and specific expertise
When it comes to virtual CFOs, businesses have a wider range of options and services to choose from – as opposed to the general tasks which in-house CFOs are usually hired to perform. It can be difficult to find the perfect in-house CFO, due to the limitations of physical location, varied understanding of different industries (especially uncommon or niche ones) and differences in education preference.
However, with virtual CFOs, businesses can choose their ideal CFO without having to worry about the physical logistics of working with an additional finance professional, nor the limitations of expertise. Instead, businesses can simply choose from an online menu of preferred tasks or industrial experience and select any one of the available virtual CFOs. In this way, businesses can narrow down on the professionals who they want to work with, over personnel who they may hire based only on physical location.
A virtual CFO is nine times out of ten, more cost effective to hire in the long run versus in-house CFOs. This is due to the fact that hiring an in-house CFO comes with many hidden costs in addition to a salary, such as the extra person’s worth of electricity bill, computer and other technical equipment as well as ongoing accountant software payments. Such costs may not be worthwhile in the long run, especially in the case that a business is only looking to hire a part-time or casual CFO employee.
In addition to such hidden facility costs, the time spent training an in-house CFO is another ‘cost’ which needs to be factored in. An inexperienced and freshly graduated in-house CFO may require more training and professional education than that of a virtual CFO who has worked with many other businesses in different industries. While it may seem worthwhile to teach an in-house CFO the ins and outs of your business, you can never predict the longevity of an employee, and thus you may be spending time training more than one CFO for your business.
Are you looking for a virtual CFO to help manage your business’ financial matters? Our team of experienced accountants and finance professionals at POP Business are well prepared to meet all your business needs at an affordable price point – with even added points of convenience to boot! Get in touch with our virtual CFOs here to see how they can help you with your business!