Your business: How a Virtual CFO can help
Here at Funding Strategies, we frequently find that companies start seeking help when they already have serious cash flow or working capital issues.
Some of the immediate actions we suggest are cutting costs, collecting outstanding receivables, building cash, reducing the receivables cycle and frequently reconciling cash flows. However, for small to medium size businesses the implementation of these tasks is easier said than done.
Small and medium size businesses’ management usually focus their resources on the day-to-day operations and quite often the companies are “resource constrained”. Consequently, and more frequently than not, each of their team members wear multiple ‘hats’: sales, bookkeeping, management, customer services etc. Therefore, it is quite common that the management teams lack medium- and long-term financial visibility, or even have time to think about it.
A Chief Financial Officer (CFO) is the person who manages the company’s financial strategies and operations. The CFO’s main responsibilities are financing reporting, management accounting, cash flow modelling, financial analysis, forecasting and budgeting, and business planning. Quite often this is different from what the company’s accountant is focussed on, which is usually end of year tax accounting.
A CFO is able to identify potential risks in the short and long term and helps to strategize suitable actions according to the company’s particular situation. Having a CFO on board also gives confidence to financial institutions and prospective investors, such as private equities, venture capital companies and angel investors, regarding the business managing their financial affairs appropriately.
Despite the advantages with hiring a CFO, some businesses see this position as a challenging cost to afford, especially when the company is trying to grow. Appointing a Virtual CFO role is seen as a good alternative.
A virtual CFO performs all the tasks mentioned previously, remotely or in a hybrid situation. This is advantageous for the company not only because of the decreased costs, but because the CFO can also offer an independent view to the business.
About Funding Strategies
Funding Strategies is an Australian based capital markets firm providing venture equity capital and finance services to small business and companies seeking capital for growth and expansion in the unlisted and pre-IPO capital markets. We specialise in creating and implementing successful funding and capital raising strategies, both equity raising and debt funding, including quick business loans. We work with predominately private and public companies, and sophisticated investors, with a broad range of services.