Having financial foresight is essential for a business to run smoothly. Sometimes start-ups and SMEs do not rely on this function and fail miserably. Most firms do not even know what a CFO is, let alone learn about a virtual CFO.
Deciding whether or not to outsource virtual CFO services is a crucial decision, but many myths may cloud your judgement. The following points debunk some of the misconceptions associated with the role of a virtual CFO:
Just a fancy term for a general accountant and bookkeeper:
Many a time, businesses do not understand the difference between an accountant and a CFO. Their perception is that a virtual CFO is more experienced, inflexible, technophobe, and repetitive-natured.
They believe that, like a bookkeeper, they too record the transactions, identify discrepancies, and ensure the timely payment of bills. Their services focus on providing short-term and narrow accounting solutions based on past performances.
In reality, a virtual CFO has a deeper understanding and a broader skillset to navigate financial complexities. They have the skills to mitigate business and non-business risks. They take the bigger picture into account and create short-term strategies accordingly.
I will lose control over my affairs:
Many business owners fear that a virtual CFO will take over their operations without their discretion. Since an outsourced CFO is not an internal member, the fear is valid but misplaced.
An outsourced virtual CFO has access to only those matters which you permit. They will evaluate and advise you as long as you have a contract with them. You can chalk out their areas of control and decision-making.
They are expensive to hire:
It is a myth that hiring accounting services near me will add to my costs. The actual scenario is the complete opposite. An outsourced CFO lowers your operational costs with their efficiency and expertise. They work on areas that you outline for them and for the duration you want. There are no training and other personnel expenses involved in maintaining them.
Today, it is essential for businesses to change their perception of virtual CFOs and not let any myth cloud their judgment.
