Despite Australia having over 2.5 million businesses, half of them do not have a dedicated financial head who can liaise with the company frequently to manage its finances. Financial management is a core element in a business’s success and growth. Not every business employs a professional CFO to help with its business development. Ignoring this aspect of the business can cause significant consequences in long-term growth. Companies that find it expensive to hire a full-time CFO can hire a virtual CFO in Australia. They are highly experienced and efficient and provide accountability, increase profitability and provide navigation to the businesses during accelerated growth by implementing systems optimally.
Who Are Virtual CFOs?
To know what to look for in virtual CFOs, it is essential to understand their role in a business. A virtual CFO has all the qualifications and provides the same expertise as a traditional CFO. The difference is that these CFOs work remotely. They are available for part-time, contract-basis work, which makes them highly focused on their role in the company. Small and medium establishments that cannot afford to have a full-time CFO in their companies can benefit significantly from the strategic financial planning and advice provided by a virtual CFO in Australia. They can contact these CFOs for the specific time or task they need and heed appropriate suggestions to grow their business. And the virtual CFos can maintain a complete work schedule with multiple companies.
What Are the Contributions of a CFO in a Company?
Virtual CFOs provide a wide range of services depending on company size and needs. However, they usually offer at least these standard services to ensure timely and accurate reporting of information on a company’s performance, growth, condition, and cash flow. They also comply with all the Australian local, state, and federal taxes, rules, and regulations and provide information to assist management in creating business plans and financial strategies. They help observe and implement strategic controls for internal operations and performance. The responsibilities that virtual CFOs take on have been increasing significantly in the past few years. According to the McKinsey Global Survey in 2018, CFOs in Australia are increasingly taking responsibility for digitisation, board engagement, cloud computing, data analytics, visualisation and automation of the business. Their expectations and duties vary according to the growing needs of the business and its capabilities.
Strengths and Qualifications of a Successful Virtual CFO
It suffices to say that finding the ideal CFO will be crucial for business success. They must be sure to check for the following when screening candidates:
Educational Qualifications and Certifications:
The virtual CFO should possess degrees in accounting or finance and experience in those fields. Companies must ask for references from previous clients to verify their prior work and discover more about their performance. Verify their work, learn more about their performance, and ask for references from their previous clients.
Knowledge of the business sector:
While any CFO can offer general financial competence, the greatest virtual CFO for your company will know the particular industry and its workings.
Data security measures:
Virtual CFOs should have client protections and systems to safeguard data, avoid misunderstandings, and stop fraud.
Businesses of the day change dramatically due to customer demand, technological advancements, changing laws and online presence. They can grow in size and shift products or services in the market as new markets emerge. A virtual CFO must be able to adapt to the changes and provide services according to the business needs.