What does a v-CFO do?
A virtual Chief Financial Officer (v-CFO) can be hugely beneficial to any company of any size. A v-CFO brings a wealth of financial, strategic and commercial wisdom. They can help clarify and realise the objectives of a business. Then together, as business partners, the company can achieve better results, faster.
At some stage business owners realise they may lack the financial and strategic skills to effectively grow their company to the next level and in an increasingly sophisticated business environment, a v-CFO is exactly the ingredient to help achieve this goal.
The v-CFO is employed by the business as frequently as is needed, the cost being far less than that of a fulltime junior accountant, but with significantly more value adding potential.
What are the steps a v-CFO should take to add the value expected of his/her appointment?
Using our boilerplate approach the v-CFO will be able to accurately assess the issues, develop the methodologies to overcome them and establish the foundations for solid future growth;
- Internal controls – Making sure that there are robust processes and controls capturing the data correctly and accurately
- Cash flow – Improving cash management practices, forecasting and realisation.
- Profitability – Where the business is making or losing money
- Reporting – Accurate, timely and meaningful reporting including KPI’s and trackers will focus business owners on the key areas of the business that are in most need of attention.
- Planning – Budgeting and forecasting with the entire team, setting goals and milestones that motivate and acquire management commitment and buy-in
- Tax and Compliance – The v-CFO will make sure that the business will be making all the VAT returns on time, compliantly and as efficiently as possible. This is a complex area and new to the region; penalties can compound and build rapidly
- Team Structure – Ensuring your business has the right people in the right roles
- Risk Management – Implementing plans for future stability
- External Stakeholders – The v-CFO can act as a seamless extension to a business. They can act as the CFO in bank meetings or with potential investors adding confidence and credibility to the business owners’ presentations
The relationship between the entrepreneur and the v-CFO is vital for success. Establishing the expectations between the company and the v-CFO should be clear at the outset.
The sooner the v-CFO can be introduced to the company and integrate within it, the sooner value can be generated.
The v-CFO should always monitor their progress and performance. They should always strive to deliver above and beyond expectations.
For each of the above steps we will publish practice guidelines to achieve success and drive value, so stay tuned! (contributions and feedback welcomed by the way)
PARTNER & DIRECTOR OF ACCOUNTING & CFO SERVICES