All Posts tagged vCFO

Do You Need a CPA or VCFO for Your Business?

Do You Need a CPA or VCFO for Your Business?

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.

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What to Expect from a Part-Time Virtual Chief Financial Officer (VCFO)

What to Expect from a Part-Time Virtual Chief Financial Officer (VCFO)

As your business thrives and grows, you may find yourself dealing with a broad range of financial issues and topics that you hadn’t fully prepared for. The key to answering these questions means assessing your needs and determining if it makes sense to work with a Virtual Chief Financial Officer (vCFO) to help you chart and properly track your company’s financial resources and goals.

For most business owners, the skills of a CFO lend themselves to developing strategies that aid in the performance and profitability of a business. Unfortunately, when working within budgetary parameters, hiring a full-time CFO may not be financially viable.

But you do have options.

A part-time virtual CFO can be the perfect solution to your problems.

With the ability to handle the duties assigned to a traditional CFO, a vCFO can work remotely and on a part-time basis. A vCFO can act in a dedicated role to monitor the financial well-being of your business and can add incredible value to your company.

What Can a vCFO Do?

A vCFO offers an affordable way to acquire the benefits of a talented finance expert, without the higher expense of a full-time, in-house executive. Working on an hourly basis, and in a remote capacity, a vCFO can perform a wide variety of duties including but not limited to:

  • Overseeing the financial initiatives of a business
  • Participating in strategic planning activities
  • Preparing and managing operating budgets
  • Forecasting, managing and reporting on cash flows
  • Creating internal controls and assigning duties
  • Monitoring and advising on financials
  • Managing compliance requirements

The vCFO also serves to identify and oversee the finance and accounting support needed from the roles of controllers, accounting staff, tax accountants and auditors. While the cost of services can vary, a part-time vCFO is still a highly cost-effective solution that also provides a broader financial perspective to your operations.

Benefits of Working with a vCFO

A company not taking advantage of the services of a vCFO is often unaware of the missed opportunities for profit. According to experts, what entrepreneurs may not realize is that money is already being spent on lost profits and misspending.

The dynamics of a business are best explored through the lens of an educated financial professional, and relying on the talent of a vCFO can spell the difference between your company’s survival or failure – especially in today’s tough business climate. If you’re acting as your company’s CEO, you can also expect to serve as a strategic partner for your vCFO to increase profitability and improve cash flow.

As you consider the next step in your company’s financial journey, it’s important to keep in mind that the role of the vCFO is not to act as an agent that will rubber-stamp every and all decisions without first doing their due diligence. Instead, expect them to challenge you on financial decisions and to help you create the kind of transformation that leads to your company’s improvement and success.

Trust the Financial Experts at Gonzalez & Arrambide, Inc.

Since 1996, the financial experts at Gonzalez & Arrambide, Inc., have worked with a range of clients to offer an array of exceptional services to meet your financial needs. Call us today at (956) 447-9009 to explore how we can help you grow your business

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