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How a Virtual CFO Can Guide Your Growth

As a business owner, growth is likely high on your priority list. 

But as you know, growing your business takes work and a strong understanding of your numbers. Getting to where you want to be is time-consuming and once you get to a certain point, there’s only so much you can do on your own. 

Your mind fills with questions like: 

  • Do we have it in the budget to hire employees?
  • What is our burn rate?
  • How is our cash flow? Do we need more? 
  • Are we growing at the right pace? 

This is when the expertise of a virtual CFO will come in handy. 

What Does a Virtual CFO Do? 

Virtual CFOs serve as an extension of your team. In essence, they take care of your entire financial system. 

More specifically, virtual CFOs offer: 

  • Complete bookkeeping services
  • Business modeling and financial projections for your business
  • Cash flow management and planning
  • KPI selection and tracking based on your business’s unique goals and needs
  • Business performance audits
  • Board reporting, audit assistance, and CRA support
  • Accounts receivable management which includes invoicing your clients
  • Accounts payable management which includes paying your bills

Ultimately, the goal of a virtual CFO is to manage the financial side of your business with expertise so you can spend more time focused on your team and customers. 

How Can a Virtual CFO Guide My Business Growth?

Growth is in the strategy. 

At Vertical CPA, our virtual CFO services are built intentionally to guide your business towards growth. We start with improving business performance, provide guidance for operational decisions, and emphasize strategic decision-making to get your business where you want it to go. 

Improve Business Performance

This is where the groundwork for growth is built. To grow your business, you have to have a strong financial foundation and that starts with understanding where your business stands, creating a plan and taking action to improve performance. 

First, a virtual CFO will help you build a business model that looks toward the future. It will rely on industry-specific operational metrics so your model is tailored for your specific business. 

This also means a makeover of your processes. It’s essential to have processes that can grow with you and adapt to your business as its finances continue to develop.

Virtual CFOs know how to derive forecasts and reports that provide information to further your business. Take the statement of cash flows as an example. Cash flow planning is of the utmost importance. To be even a little successful as a business you need a strong cash flow. It shows there’s more money coming in than going out, which is essential for a growing business.

When you rely on the experience of a virtual CFO, you can have confidence your business performance is trending in the right direction. 

Guidance for Operational Decisions 

Operational decisions are what keep your business going. A virtual CFO will partner with your CEO to provide data-backed advice for day-to-day decision-making.

Considering finances play a role in every area of your business, a virtual CFO can offer quantitative support in: 

  • Human resources 
    • Do we have the funds to make a new hire?
  • Marketing and sales
    • Can we boost our marketing budget? What sales channels are producing the best results? 
  • Apply for a bank loan
    • Is a bank loan the best option? How can we get the most out of a bank loan?
  • Pitching to investors 
    • What numbers do they want to see? What areas can we improve to attract more investors? 
  • And more

Strategic Decision-Making

Not to be confused with guidance for operational decisions, virtual CFO services also include strategic decision-making. This is more of a focus on long-term strategizing than short-term advice. 

Strategic decision-making is about putting your business in the best position for success in the future. 

As a growing business, you’ll likely have: 

  • New products launching
  • Pricing questions
  • The potential to expand departments or offer new services
  • Potential to acquire a competitor
  • To think through the best route for selling your business at some point 
  • To think through raising debt/equity

In these situations, a virtual CFO will work with you to determine long-term effects and strategies so you can be prepared for what’s ahead.

Ready to Take Advantage of Our CFO Services? 

Virtual CFOs have plenty to offer growing businesses, including tactics and strategies to build upon their growth. 

Through a variety of services, improved business performance, guidance for operational decisions, and strategic decision-making, virtual CFOs take financial management off your to-do list. There’s no longer a need for you to spend valuable time sorting through numbers, generating reports, and hoping you’re making the right moves for your business. 

At Vertical CPA, our virtual CFO services are built to help your business grow. Book a free call with us today to learn more about what our services can do for you!  

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