Now that you’ve started down the path of entrepreneurship, there are a series of essential roles to fill, like CEO and marketing team positions. However, many people make the mistake of leaving the financial department last in the staffing queue.
Within the financial department, the most ignored position is that of Chief Financial Officer, also known as the CFO. The lack of a CFO is the reason many enterprises don’t make it.
At Gonzalez & Arrambide, we want to showcase the importance of hiring one of our vCFOs to help your business boom.
Duties of a vCFO
The CFO is responsible for managing the financial aspects of your business. Yet, a full-time, in-person, CFO can be costly. This is where hiring a virtual CFO (vCFO) could make a lot of sense for small businesses and startups.
A vCFO is a consultant or business that offers the services of a CFO, but does their job remotely, and usually on a part-time basis. The vCFO will focus on creating high-level financial strategies and putting them into action.
Our vCFOs at Gonzalez & Arrambide can provide financial services on a weekly, monthly, or quarterly basis. Our vCFOs are also ready to provide advice for a specific project. However, if you already retain the services of a full-time CFO, it would be redundant to get a vCFO.
Yet, if you have a new start-up, keep on reading to learn why a vCFO is the best option for you.
5 Reasons to Hire a vCFO
1. Customized Goal Setting
The first thing a quality vCFO will do is understand and lay out your business’ short and long-term goals. These goals will become the blueprint from which to build your custom strategy.
You get customized experience to your needs and goals. This cuts any expenses on services you don’t require.
2. Report Design and Problem Solving
The vCFO will design and set a standard report to help organize your finances. A vCFO will have seen many issues and situations in different companies, this allows them to organize your finances in the most effective way for you.
Their experience will help you get past your problems even before they happen. You’ll have the benefit of learning from others’ mistakes.
3. Technology Efficient
The vCFO will optimize any of your financial technology. This way they will maintain the financial organization within your business and cut expenses on software you don’t really need.
Virtual CFOs have experience with a wide range of different systems and products since they work remotely. They will be able to provide first-hand advice on different systems, and find one suitable for your needs.
4. Experience and Custom Balance Sheet Builds
Hiring a vCFO gives you a fresh pair of eyes that have seen many businesses before. A quality vCFO will analyze your balance sheet when they come on board. If needed, they will rework it.
By outsourcing your CFO services with us, you’re bringing instant experience. That experience could be vital, especially when it comes to a newly found business.
5. Streamline Financial Processes
Working with a vCFO, you’ll gain from their financial expertise and obtain help with developing and streamlining your financial operations. Since the vCFO will have worked with various clients across different industries, they have insight into operational improvements.
Find the Weslaco Financial Services You Need at Gonzalez & Arrambide
As your business grows, a vCFO can grow with you. Whether you only need the Gonzalez & Arrambide vCFO services one day a week, or part-time as you become more successful, we are here to support your business at every step.
Making sound financial decisions are crucial to the success of any size company. A financial professional will help you understand and chart strategies to help you manage a profitable company, but for many, there may be confusion regarding the respective services of a Certified Public Accountant (CPA) or a virtual Chief Financial Officer (VCFO).
What your business needs will determine what level of financial professional you need. To clear the air, the virtual CFOs at Gonzalez & Arrambide want to discuss the differences between all of these roles so that you can get the most benefit for your business.
The Differences Between a CPA and a VCFO
A moderate sized company with revenue ranging from $2 million to $20 million may have senior executives rely on the advice of their CPA for matters involving certain business finances. In these instances, the CPA will offer a financial opinion based on experience with taxes and tax law, rather than offering insight related to long-term financial advice for the business.
The responsibilities of a VCFO go beyond tax advice and basic accounting. In a nutshell, a VCFO helps with business planning, forecasting, negotiating, and business budgeting, all of the same kind of responsibilities a company Chief Financial Officer (CFO) would do. A VCFO, on the other hand, saves a company money because they aren’t paying for a full-time employee with benefits.
It’s important to note that you don’t need to be a CPA to be a VCFO, and CPA’s aren’t always well-versed on managing complex corporate finances that a VCFO can.
Let’s elaborate a little bit on these roles now.
More Into the Role of the CPA
In the simplest of terms, the CPA is in the business of tax return preparation; that is their primary responsibility. A CPA may collaborate with a VCFO to provide tax advice that will ultimately help guide the company’s financial decisions based on short term and long-term objectives.
The CPA’s knowledge revolves around taxes and tax laws that lend to the strategies that may be developed by an outsourced CFO. Often, a company may mistakenly look to a CPA for business advice that may be best handled by an individual with a background as a VCFO. A CPA will help a company thrive by performing a range of duties including:
- Organizing and updating accounting records
- Staying abreast of tax laws
- Tax preparation and analyzing reports on transactions
- Conducting regular, detailed audits
- Manage financial documents, expenditures, and investments
Consider a VCFO to Help You Strategize While Saving Money
When evaluating the financial goals and objectives of a company, an outsourced CFO will bring strategies and insight that a CPA may not be equipped to handle. A qualified and experienced VCFO will focus on future cash flow and offer expert advice on operational planning to ensure a company is sustainable. In addition, a company may choose to hire a VCFO in order to:
- Chart a financial strategy
- Forecast growth
- Outline sustainability by addressing expenses and highlighting assets
- Improve profitability
- Control expenses and cash flow
- Establish strong financial relationships
- Assess financial risk
- Finance project management
- Liaison shareholder relationships
Ultimately, a business may decide to hire a CPA, a VCFO, or both based on a range of factors exclusive to your company’s needs. Whether you’re a growing business or an established company, hiring the right team can make all the difference in your financial outlook.
The Virtual CFOs at Gonzalez & Arrambide Offer Trusted and Sound Service
Founded in 1996, Gonzalez & Arrambide, Inc. has become a respected and recognized accounting firm dedicated to helping individuals and businesses of all sizes with their business needs and strategy. Our commitment to services ensures we give you what you need to succeed and grow your revenue streams.
At Gonzalez & Arrambide, we offer our clients Virtual Chief Financial Officer (VCFO) services and have helped them improve financial management without spending the substantial resources needed to hire someone in a full-time role.
Serving the entire Rio Grande Valley Greater Metro and located in Weslaco, our VCFOs are more than qualified to meet your business needs.