Familiar with the term, Virtual CFO? Well for those who aren’t, don’t confuse this for a robot or AI personality who does financial tasks. The term Virtual Chief Financial Officer simply refers to an on-call and outsourced professional who does financial work, just like what a normal, in-house, and full-time CFO does.
Today, more and more companies all over the world hire VCFOs to effectively get a strong financial and management support without bearing the high costs of maintaining a full-time CFO in their organizations.
If you wish to know more about how Virtual CFOs in Singapore work with different kinds of companies, then read on ‘coz you’re on the right page. Below, you can find all the information you need to know about VCFOs:
Outsourcing Virtual CFOs
As we have mentioned earlier, VCFOs are hired from outside firms/organizations to become on-call or part-time CFOs for your company. And because this has been changing the game for a long time now, there are actually plenty of Singapore firms that now provide VCFO services. So basically, finding a competent and qualified Virtual CFO for your company is easy. In the end of course, it will all boil down to which firm you’ll choose to work with.
Cost of Hiring a Virtual CFO
In general, hiring a virtual CFO is much cheaper. And it’s not that we’re into hasty generalizations, but, it is indeed smarter and easier on the budget than hiring a full-time CFO who sits daily in a big office demanding for raises or bonuses.
But seriously speaking, the reason why we say that it is more affordable and reasonable for you to hire a VCFO is for the fact that the service can be paid for in customized manner. You may simply choose when and how you want to pay your VCFO – whatever suits your company budget allocation best. Depending on your deal/contract, it can be paid at a fixed, monthly, quarterly, or bi-monthly price.
The Difference of a VCFO from an Accountant or Bookkeeper
Your company’s accountants and bookkeepers directly deal with the numbers – cashflows, A/R and A/P, and the like. They organize, record, and analyze all the financial data. Now once all those numbers have been finalized and reported, that’s when your VCFO comes in.
The Virtual CFOs will now basically teach you how you can understand all those numbers, so you could make sound business decisions. But in most cases, they make the second, even up to the very last look at those numbers in order to help you strategize. They provide recommendations so you can operate your business while maximizing your financial strengths.
Who do VCFOs directly work with?
In relation to what we have mentioned earlier, because they’re basically sitting behind your company’s numbers, your virtual CFO will work directly with your accountant/s, bookkeeper/s, managers, and even your board of directors.
As a matter of fact, VCFOs can even go to your office occasionally so they can sit in on management meetings, planning sessions, and other conferences so that they could help in the other aspects of your business.
The VCFO Job Description
Just like how companies compensate their VCFOs, they can also customize the set of work or services they need their VCFO to provide. To simply put it, virtual CFOs are indeed flexible and accommodating to support a company’s needs. The fact that it’s part-time and contractual, makes the VCFO arrangement a smarter and better option. Your needs are addressed exactly when, where, how often, and how you want it.
So without further ado, there are just some of the things virtual CFOs can do:
- Find a way to help you see exactly what financial position your company is in at any given moment
- Work out how to get the essential numbers into your systems
- Create financial forecasts to help you plan and organise your cash flow.
- Help with the structure and governance of the organisation.
- Work out where your money is coming from: your gross profits, net profits, most profitable items or services, what’s making you money and what’s inefficient.
- Know where your money is going: your payroll, taxes and the costs of what you’re selling; where you can cut back and where you might need to spend more.
- Give you budgets and goals for the coming months and year, plus strategic and business plans for the longer term.
- Create financial documents that show lenders, investors or potential buyers how successfully your business is operating and how much more growth it might have.
- Puts systems and tools in place, including dashboard reporting
- Review current finance processes and policies and implement improvements to allow the businesses to operate more efficiently and effectively
- Find the most suitable cloud accounting provider and solution to fit a business’s needs and help with integration and implementation
So now that you have understood all the essentials on VCFOs and how they work with businesses, are you now thinking of hiring one for your company in Singapore? If so, then look no further than Enterprise Global. We have a team of highly qualified and experienced VCFOs that have worked with various Singapore industries and business sectors. Speak us now so we could help you out.