cfo services for small business and business owners

Are CFO Services for Small Businesses Worth It?

If you’re like most people, you’ve probably heard of a Chief Financial Officer (CFO), but believe that this is a position you’d only find in large businesses. 

However, if growing your business is a part of your strategic plan, you might want to consider how an outsourced CFO service can help you reach your financial goals and improve the overall health of your business along the way.

What Does a CFO Service Do for Small Businesses?

CFO services for small business can provide a variety of benefits, helping with long-term financial strategy as well as the day-to-day financial decisions necessary to maintain a business.

Business owners can expect a CFO service to provide assistance with financial tasks including:

  • Budgeting and variance analysis
  • Business performance review
  • Compliance
  • Preparing and managing financial statements
  • Tax planning and preparation

In short, CFO services for small business can help you with strategic financial planning, which may become increasingly essential as your business grows and expands.

Virtual CFO Services vs. Full-Time CFOs

Because of the value added by an in-house CFO, many businesses fill this role with a full-time employee. While the financial services provided by this individual are important, the costs can be prohibitive for small businesses. 

By outsourcing financial needs to an online firm, your financial needs can be handled by a dedicated support team that can provide professional service at a fraction of the price.

But saving money is only the start when it comes to the benefits provided by virtual CFO services for small business owners. These outsourced solutions can provide:

  • Specialised skills and knowledge
  • Access to the latest software
  • Consistent communication
  • Accurate reporting
  • Better cash management

The financial reporting offered by these CFO services can even help you to hone your business strategy and plan for the future. In many cases, these financial professionals can help you strategise and manage the expanding needs of your company.  

How Much Do CFO Services Cost?

Before you consider the costs of virtual CFO services, consider the costs of hiring a full-time accountant or financial team.

The Economic Research Institute reports that the average CFO salary is $265,336 in Melbourne, Australia. It’s unlikely that your business has the capital to hire these kinds of financial specialists, highlighting the strategic importance of CFO services for small business needs.

Finding the right CFO service is usually a lot easier than going through the process of hiring an actual employee. You’ll be able to make decisions faster and remain competitive when you’re not stuck investing time in the interviewing and hiring process.

So how much can you expect to spend? Virtual CFO services typically charge a monthly fee for their services. This fee can vary depending on such factors as:

  • The size of your business
  • Your financial needs and goals
  • The nature of the services provided
  • The experience of the team you hire

Some companies charge a fee of around $499 a month for their services, which is considerably cheaper than the costs of hiring a full-time employee.

How to Know When You Need a CFO Service

When is the best time to consider CFO services for small business? While there’s never a bad time to invest in your company, there are several signs that may indicate that it’s time to consider partnering with an online firm:

  • Your business is growing quickly
  • Your financial needs are changing rapidly
  • You’re looking to outsource or automate
  • You want to improve the return on investment of your current financial system
  • You lack detailed financial reporting about your company
  • You feel stressed or uncertain about your company’s financial future

In other words, a CFO service can be important when your business needs are changing, but you don’t have a full understanding of your company’s financial health.

This can be particularly important when you’re seeking out business loans or other financial services. Lenders may expect to see detailed reports to assess the health of your business.

Alternatively, you may simply need the assistance of a CFO service to help you get a better handle on your company’s financial processes and to streamline them for the road ahead.

Take the Stress Out of Running Your Business

If financial management has felt less like a strategy and more like a juggling routine, it’s time to consider how Visory can help. Our team of financial professionals can assist in improving the management of your small business, helping you move from the home office to the corner office as your business grows and expands. 

Explore our website to learn more about Visory’s financial services and discover how our CFO services can integrate into your small business.