We get the question, “what is a virtual CFO (vCFO)?” Simply put, a vCFO is a financial coach for small to medium-sized businesses (defined as high growth start-up to around $20 million in gross revenues) owner that is not large enough to afford/require a full-time CFO (the average full-time CFO costs upwards of $140k with benefits factored in). A vCFO takes a proactive approach to provide insights into the business in order to grow the organization or sell the organization. By having a vCFO focus on the financial health of the company, the owner has more time to focus on things he/she loves, such as more time with family, building the sales pipeline, or servicing customers.
A vCFO meets regularly with the owner(s) to review and discuss financials, financial performance, and forecasts to make sure the company is on track to meet financial goals. In addition to a regular meeting, the vCFO can perform the following items and more:
- Build a more automated accounting system
- Break-even analysis
- Cost analysis
- Due diligence on mergers and acquisitions
- Develop and maintain key performance indicators
- Develop key employee incentive plans
- Liaison with third parties (attorney, banker, investment advisor, insurance broker, etc.)
Book a complimentary 15-minute call with our vCFO Luke Templin by clicking here to see if a vCFO solution would benefit your company.