Becoming a Virtual CFO
Nowadays, everything from email to customer relationship management (CRM) systems are being virtualized and done offsite to reduce cost and increase efficiency. It’s even becoming more and more common for organizations to use offsite systems to back up their data. Not surprisingly, financial analysis and other CFO functions can also be done offsite, resulting in similar cost savings and efficiency gains. Here’s how you can take advantage of the virtual CFO trend, as well as what a virtual CFO is and how the arrangement works.
How Accounting Is Changing
Traditional accounting typically used to involve hiring someone to work on-site in order to handle a variety of issues and financial systems. Now, many companies are starting to find ways to save money when it comes to the salaries they pay their in-house staff.
For example, instead of hiring someone directly to do their bookkeeping, some companies have decided to outsource this service to bookkeeping specialists. In this way, they not only save money but also get to take advantage of the expertise of these professionals.
Furthermore, because so many aspects of accounting have gone digital, there’s often no need to have someone on site perform a wide range of functions. Using accounting business intelligence software, all data can be unified into a central system where it can then be collected and analyzed from anywhere in the world. This has paved the way for the rise of the virtual CFO.
Putting the Changes to Work for You
There are several ways to put these developments to work on your behalf, particularly because all you need is a computer to have access to a variety of tools that can digitize many financial services. To illustrate, if you have an accounting dashboard, you can immediately surface critical information regarding a company’s finances, providing it at a moment’s notice when it is needed.
You can also produce reports and give them to decision-makers, putting those people in a position to guide the company using reliable data. Moreover, you can compare the performance of one company to that of another—or even the general industry average—and provide a more comprehensive view of the performance of an organization.
To generate even deeper insights, you can set up smart key performance indicators (KPIs) and use them to evaluate a company’s progress over time. For instance, you can help decision-makers make solid choices regarding the performance numbers they should aim for, quarter by quarter.
In short, you can do everything a CFO can do without ever setting foot inside a company’s headquarters.
What Is a Virtual CFO?
A virtual CFO, or chief financial officer, is an individual to whom an organization outsources its financial management. For a company, this means it can often save money, paying a virtual CFO somewhat less than it would pay an in-house person.
For the virtual CFO, the benefits are even more impressive, particularly because you can have several clients at the same time, performing CFO functions for each one and earning income from multiple sources.
As a virtual CFO, you would be in charge of making important financial decisions that track the progress of a company as well as help build its future.
How You Can Deliver the Services of a Virtual CFO
Delivering these services requires experience both with financial management and the technology needed to gain insights into a company’s fiscal performance. As long as you have the data, your experience and knowledge can be enough to power an organization to the next level.
By using accounting business intelligence software, you can develop financial performance analytics that can be used to guide a company right from your home office. In addition, you can serve several companies at once by setting up an accounting dashboard for each one.
One of the easiest ways to get started is by using PathQuest BI. With the PathQuest reporting tools, you can provide a company with all the information it needs to navigate difficult economic terrain. You also have the ability to produce financial performance analytics as well as deliver the kind of secure accounting a high-powered organization expects.
Also, because PathQuest BI integrates with other solutions, such as QuickBooks and Intact, you don’t have to force your clients to install and manage a brand-new, complicated system. You can handle all integrations on their behalf conveniently as you set up your own digital infrastructure. To see the potential of PathQuest BI for yourself, set up a demo today.