If your small business needs help with tax planning, cash flow, and other financial matters, you may wish to utilize a company that offers virtual CFO services. The specific virtual CFO services that are offered by each company can vary, but there are usually some specific skills and tasks that virtually all virtual CFOs will handle. Learn what virtual CFO services you should expect from a company below.
Monitoring the Financial Health and Well-Being of Your Business
A company serving as your small business’ virtual CFO should be able to monitor and assess how well your business is doing financially, including what revenues and expenses are being generated and incurred each month, what your accounts receivable and accounts payable are, and more. A virtual CFO will usually monitor the cash flow of your business from afar using cloud technology, then should hold monthly meetings (at least) with you to inform you of where your company is meeting its financial goals and where it is not so you can make adjustments.
Offering Financial Guidance
The virtual CFO should be apply practical and applicable financial guidance to help your business improve its cash flow so that accounts receivable are received more quickly and turned into revenues, accounts payable is handled more quickly so that there are more accurate assessments of expenses that have already been paid (and that can be applied to saving on your taxes), and improving the overall financial well-being of your business. This means that the virtual CFO should be a regular attendant and participant in your company meetings, at least on a monthly basis, to ensure your company remains on good financial footing.
