When your business finds itself in need of professional financial management, it can be a tough decision deciding what company to use. After all, if you don’t already have a CFO, you probably haven’t taken the time to look into the matter. With such a wide variety of different CFO services, how can you tell if the virtual or part-time CFO you’re looking into is the best fit for your company?
Many questions come to mind when choosing a financial advisor that can help you set your finances straight. Making the wrong decision can be costly, especially when your profits are receding and you need expert financial advice A.S.A.P.
While there isn’t any better substitute for contacting the CFO and setting up a strategy session, we’ve put together a list of the top 3 things you should look for when choosing a Virtual or Part Time CFO service.
#3. Sharing your Entrepreneurial Spirit and Taking an Active Role in the Business
We begin our list at Number 3 by looking at the psychological side of things. The ability to relate to your staff, CEO and important stakeholders will make or break the professional relationship you have with the CFO. Being outside of your company, many part-time or virtual CFOs may have a nonchalant attitude towards working with you.
Combined with their industry experience, you need to choose a part-time or virtual CFO that’s ready and willing to play an active role in your business. Being able to share a common vision for the company’s future will ensure that the CFO puts the same amount of passion into their work as you do.
At CRS, we have worked with many forward thinking businesses that aspire to make a major impact within their industries. While many of these businesses lack the financial guidance to realize their vision, we enjoy taking on new challenges and being a part of something great.
#2. Experience Within Your Industry
Number two on our list is very straightforward. Any financial management professional will be able to adapt to your industry. However, choosing a virtual or part-time CFO who already works in your industry will make the entire process much less complicated. They will already have an idea of what financial advice you need, as well as the KPI’s and benchmarks relevant to your industry. With prior knowledge of your industry, this combination of experience and knowledge allows the CFO to integrate seamlessly into your company.
As for CRS, our virtual and part-time CFOs specialize in providing financial advice and guidance to service based companies operating on a remote model such as:
- Web Design Agencies
- Marketing Agencies
- Design / Branding Companies
- Advertising Companies
- Software Development Providers
- Service-based business
Companies that operate on this model find our virtual CFO Service particularly appealing. We are using the same exact technology that your company is using, and will have no issues fitting into your business model.
#1. the Ability to Lead your Finance Team and Accounting Staff
The job of a CFO is incredibly complex. They need to –
- Identify the financial status of the entire company
- Make forecasts and develop a strategy that suits your financial position
- And most important of all, to serve as a change agent that motivates your existing financial staff to modify their existing practices
As any manager knows, getting employees to break free from their old, inefficient ways of conducting their work has always been a difficult HR task. Unfortunately, this problem is amplified when you hire someone outside of your company, such as a part-time or virtual CFO. With this said, the CFO’s ability to lead your existing staff members is vital to the continued success of your company. Before choosing a part-time or virtual CFO, you need to ensure that they will be able to –
- Clearly communicate the financial changes they will be making well before its implementation
- Help employees understand the reasons why they need to change their existing financial practices, and how the change may affect them
- Spread positive messages about the changes, and also predict the employees reactions to the change
- Ensure that all staff are provided with the training and information they need to implement the changes correctly
The Importance of Making the Right Choice
If your company’s finances are in complete disarray, we know how tempting it can be to quickly choose a financial management company and send them straight to work. However, the best decisions come from a clear head with time and thought put into it. Making a brash decision while in a state of panic and frustration could put your company in an even worse financial position. Because the virtual or part-time CFO develops the financial strategy for your entire company, it’s essential that you do as much research as you can.
As we’ve stated before, there isn’t any better substitute for directly contacting the company. Please take the time to fill out the form below and set up a complimentary strategy session with CRS. We will pinpoint the causes of the major financial issues your company is experiencing, and let you know if we’re the right company for you.
