In many small businesses or in startups, a bookkeeper reports the financial details to the business owner. They are the person who takes care of the paperwork process and maintains the business’ accounting software system. But an outsourced accountant makes use of the information prepared by a bookkeeper.
The outsourced accountant in the accounting department can works from CFO to staff accountant. You can obtain their service and pay only for the time you need them. The services that cannot be provided by the accountant can be delivered by a value-added service called Virtual CFO.
One of the main CFO (Chief Financial Officer) services is a Virtual CFO that allows you to convert your cash basis accounting records to generally accepted accounting principles (GAAP). This is more beneficial when you obtain a business loan or line of credit as they prefer GAAP statements.
Result analysis – Virtual CFO inspects the financial results to operate more efficiently and helps you to make decisions for the future of your business.
Improves Profitability – Virtual CFO tries to reduce the unwanted resource and set up systems to measure the productivity in these areas.
Budget process – Virtual CFO enables the budgeting process or modifies the existing budget based on the past result and also incorporates your goals for the future.
Organizational Structure – This is one of the unique services of Virtual CFO that helps to make changes to your organizational structure. You can get a huge benefit from this organizational structure when you don’t have a human resource professional.
Developmental Plan – One of the main purposes of using Virtual CFO is that they can improve the financial management of your business. Also, it provides you with a growth plan when your business needs more funding, people, distribution channels, training etc.
Key Performance Indicators – KPIs can say the owners what is happening today and can also predict what will happen in the future. Virtual CFO identifies the key factor and set up a procedure for tracking and analyzing them. These key factors are found in production, sales, distribution, cash collection, etc.
Business Partner – Another main benefit of having Virtual CFO is that you can have someone with whom you can discuss the strategies and issues. It acts as a business partner in tackling hard situations.