As a startup or medium-size company, you need the expertise chief financial officer to scale it to greater heights. Unfortunately, with limited resources, hiring one can be impossible. Cause let’s face it, the salary in six figures, benefits, and bonuses can be too much to handle. Luckily, you only need to worry about these expenses when you have an in-house CFO. Thanks to technology, you can outsource this service at an affordable rate, and hiring a fractional CFO isn’t impossible. Also, there is no compromise in their level of expertise. So, what’s a virtual CFO, and why should you hire one?

What’s a Virtual CFO?

A virtual CFO (chief finance officer) provides the same services as the chief finance officer but works part-time and remotely. Thanks to their existence, companies, especially medium-sized and startups, can outsource this service affordably.

A virtual CFO also provides the same level of expertise as a full-time contracted CFO in a company. They will help you in the management of the financial sector in your company and help your business grow. That being said, here are the key reasons to hire a virtual CFO:

Key Reasons to Hire a Virtual CFO for your Startup

1) Affordable

If you are just starting your company, you probably have limited resources. As a result, the best you can do is maximize what’s available. Hiring a fractional CFO is one way you can maximize the available resources. They’re inexpensive, but they offer the same expertise level as their in-house counterparts. When you hire them, you’re only paying for the amount of service or time they invest in your business.

2) Experience in Various Industries

You don’t have to worry about where to get a CFO with expertise in your industry. Virtual CFOs have all-around expertise when it comes to the delivery of services. They work for companies from various industries and deliver the best service. Thus, you’ll get an expert to help you in your field when you reach out. In addition to their expertise in your industry, they will employ their skills from other sectors. As a result, your business will benefit from networks and a multilayered approach as an added advantage.

3) Team Benefits

Hiring a fractional CFO comes with team benefits. You see, when you have an in-house full-time CFO, you only rely on one expert. But when it comes to virtual CFO, your business will benefit from an entire team in their organization. That means they will be sharing ideas to ensure your startup gets the best service in the industry.

4) Standard Reports

Most CFOs, bookkeepers, and controllers rely on specific formatting styles based on their preferences when delivering reports. But when you hire a virtual CFO, they adopt a standard reporting format. So whether it’s reports, files, or documents, they will be using a universal format. Thanks to this, your business doesn’t have to worry about changing its report format when using it for presentation.

5) Can Work With Existing Team

Fitting a new team with an existing one is often a challenge. It’s even more intricate if you are putting together an in-house and outsourced team. There will always be issues, especially when it comes to professional ego. That’s not the case when you hire a virtual CFO.

After working with teams from various companies, they know how to fit into existing teams swiftly. Also, they will introduce the transformation in your finance sector without provoking contention. Moreover, the issues that normally arise from egotistic behavior will be the least of your worries.

6) Rich Network

Most CFO organizations have been in the industry for a while. Owing to that, they’ve built a vast network with important organizations and individuals. As such, you can leverage their network to promote your business. Some of their partners include lenders, experts, and financiers.

A virtual CFO comes with not only an individual network but also that of the company and its team members. If you’re planning an expansion, fundraising, or venturing into a new environment, the fractional CFO will be resourceful. They will help you connect with the right people and organizations to assist you with the venture.

7) No Challenge is Beyond them 

Fractional CFOs have dealt with various situations in their field and in several other industries. Therefore, they have the experience to deal with all sorts of challenges. Therefore, hiring them means there’s no challenge in your business that will defeat them. Whatever challenge your business throws at them, they’ll handle it professionally.

8) Smooth Hand Offs

When you hire the services of a virtual CFO from an organization, they’ll dedicate one of their CFOs to you. During the period in service, it’s unlikely they will swap your CFO with another. However, the transition will be smooth if an imminent change is bound. Therefore, you don’t have to worry about it affecting your company. Also, you are at liberty to request a change; similarly, the handoff will be smooth.

9) Low Learning Curve

One of the significant challenges of hiring an in-house CFO is the big learning curve. Typically, it will take them around 6 to 12 months to learn about your company and maximize their performance. A fractional CFO has experience in adapting to the traditions of new organizations and delivering their performance optimally. They don’t need months to work at maximum capacity. As such, your business benefits from optimal performance almost immediately.

Getting Started

Finally, there are remarkable benefits when hiring a virtual CFO over contracting a full-time CFO. Most importantly, you don’t have to strain your company’s finances. And as a startup, you’ve got a chance to grow your business by accessing this essential service.