Most SMEs are time-poor and cash-strapped. Hiring an experienced bookkeeper on a full-time basis is not always a viable option. A VCFO is an affordable alternative to a traditional bookkeeper, who could help you with budgeting and forecasts, and provide invaluable investment advice. The price you’ll pay for a VCFO will depend on their level of experience, and the amount of time they will need to delve to your business. In any case, it can be a shrewd investment for anyone who needs additional support and strategic device — without the cost burden of a full-time employee.
A VCFO is much more than a bean-counter. The right VCFO will help you make key business decisions, such as on tax planning, portfolio management and even retirement planning. Bookkeepers, comparatively, are there to perform routine administrative tasks, such as record keeping and payroll. Their scope is limited, whereas a VCFO can be a trusted financial advisor, not someone who merely keeps the books.
Cash-flow problems plague many SMEs, and getting someone on-board to balance your books is one way to avoid going bust, like one-in-three startups do. Letting your financial records slip can jeopardise many other financial processes, too. A VCFO can spot and resolve potential problems as and when they arrive, as soon as possible. This will help ensure your company has the financial stability it needs to progress in the long-term.
VCFOs tend to operate in the cloud, which means they have access to a wealth of high-tech tools that can help SMEs to grow, and reduce the chance of clumsy human error. Cloud technology gives business owners real-time reporting of financial flows, and the data analytics to help them make more informed business decisions, and create and monitor KPIs. Cloud technology can also save SMEs time, as documents can be accessed anywhere and from any device, instantaneously. This frees up time for business owners to focus on the things that matter most to them — like ensuring growth and profitability.
Because VCFOs are an outsourced financial service provider, you can customize what they offer your business — and how much you pay for those services. This will more closely align a VCFO with your business, which is likely to result in an improved bookkeeping service. Moreover, the relationship between a company and a VCFO will remain dynamic as your business grows — meaning that you can add or remove services from your bespoke package depending on the changing needs of your business.