In large companies a Chief Financial Officer (CFO) will oversee the management of finances including the cash flow and financial risk.
This is a significant investment which is why smaller businesses don’t have a CFO, as a result they can suffer from cashflow problems and put themselves (and their family) in additional risk. But, there is an alternative: a virtual CFO.
A Virtual CFO is flexible, affordable and can adapt to your requirements as the business changes. One of the key benefits is that you as the business owner don’t get dragged into the financial department of budgeting and cashflow management. You focus on what you are good at and a Virtual CFO adds knowledge and expertise to your business.
Here are some things to look out for when hiring a Virtual CFO:
Attitude – you want a team player with the ability to relate to your staff, managers and you. You’re not looking for a nonchalant attitude but someone who cares.
Industry experience – this is not essential because people can adapt and pick-up the nuisances of an industry or sector. But, having previous experience makes it easier and quicker – they may also be able to add value in terms of pricing strategy, management processes and bench marking performance.
Ability to lead – you need a Virtual CFO that people will support through a change programme.
The key characteristics are:
• Good communication
• Help employees understand why things are changing
• Be positive
• Ensure all employees are supporting with training and resources
If you would like to explore having a Virtual CFO then get in touch and we can see if there is a fit.
Image from Flickr by Kevin Dooley.