What are the pros and cons of using a virtual CFO?

Are you considering hiring a virtual CFO but aren’t sure it's the right choice for your business? You aren’t alone! We are often asked about virtual CFOs and whether they are the right choice for businesses, which is why we have detailed their pros and cons below so you can see if they are right for you. 

What are the pros of a virtual CFO?

Working with a virtual CFO has several benefits, including better value for money, expert advice, and flexibility. These benefits make it a great choice instead of choosing an in-person CFO, especially for small businesses or those trying to save money. Each benefit is detailed below for you: 

They can be cost-effective

One big benefit of a virtual CFO is their cost effectiveness. They can be more cost effective than hiring a full-time, in-house CFO as you don’t need to provide office space, benefits, or cover other employee related expenses. 

They offer better value

Virtual CFOs can offer better value for money too, making them a good option for small businesses or those looking to cut costs. You can save money by choosing a virtual CFo, especially one that will only be working three days a week. They can also be more experienced, giving you a better candidate for the role without spending too much money. 

They offer access to specialist advice 

Virtual CFOs offer specialist advice that you might not have had before. They will have years of experience helping businesses achieve their financial goals and a deep understanding of the market, allowing them to tailor their advice to suit your business needs. 

Virtual CFOs can have a wide range of financial knowledge that in-house CFOs might not have, giving you better advice that can improve your business's finances. 

They are removed from your day-to-day operations 

As virtual CFO’s do not work exclusively for your business and on-site, they are removed from your day-to-day operations. This removed position can provide them with a fresh perspective on your business's finances. This can allow them to offer feedback and make decisions that will benefit your business that you might not have considered. Their fresh perspective can be beneficial if your finances have been struggling and you haven’t been able to address why. 

They are flexible 

A virtual CFO offers plenty of flexibility regarding their services and how much time they spend working with you and your business. Their flexibility allows you to use a virtual CFO as often or as little as you need to ensure your business reaps the benefits of a virtual CFO. The flexibility also allows you to scale their services up or down as your business size changes, meaning you never end up paying for services you don’t require. 

What are the cons of working with a virtual CFO?

Alongside the many benefits of working with a virtual CFO, there are a few drawbacks that you should consider before moving forward with a virtual CFO. It is worth noting that everyone's experience will be different, and you can avoid these cons and find the right virtual CFO for you. The main drawbacks of working with a virtual CFO are outlined below: 

There can be communication issues 

Communication issues can occur when working remotely with your virtual CFO. These communication issues can be exacerbated when working in different time zones or if your virtual CFO is working different hours from you. The time difference can make it tricky to find the right time to speak to your virtual CFO on calls. While communicating through emails and messages can work, there can be miscommunications or misunderstandings. It is tricky to determine tone, and you might misunderstand one another. 

When you struggle to communicate with your virtual CFO, it can be difficult to understand what they are working on and if they need anything from you. This can slow work down and mean it can be longer for you to see results. 

They can have other responsibilities 

Many virtual CFOs work part-time or are self-employed, with other clients and responsibilities that they have. These responsibilities and other commitments can take up a lot of their time, reducing the time they have with your company. Doing so can make communication between you and your virtual CFO worse and can reduce the availability of your virtual CFO. You need a CFO who has enough time to commit to your business and needs, so ask them about their availability and other commitments when looking for your virtual CFO. 

Find your virtual CFO today 

Virtual CFOs are an excellent choice if you are looking for expert advice without spending a fortune. Walker Hill can connect you to a virtual CFO, allowing you to access their services and see a financial improvement in your business. Find your virtual chief financial officer with Walker Hill today.