Like the outsourced accounting services, Virtual CFOs also have made a special place for themselves among small businesses. Unlike in-house accounting, where the company maintains the infrastructure, hires employees, and trains them for the latest developments, outsourcing firms eliminate this hassle and costs. It is imperative in the current times as more and more firms are looking for cost-efficient, affordable, and quality services. Like the outsourcing companies providing their services remotely through the internet or other modes without physical connection or visiting the company premises, virtual CFOs also offer their services online. 

Virtual CFO services allow businesses to evolve and grow with professional expertise. Firms can choose a suitable partner and strike a deal for a set time, activity, or long-term. Unlike old times, when small companies felt reluctant to hire CFOs due to their high costs, virtual CFOs offer an affordable and feasible option. The CFO responsible for a firm's financial planning and management must have the necessary expertise and qualifications to handle the activities. The Chief Financial Officer heads the firm's finance department and handles everything related to money. It includes accounting, software setup, conducting financial feasibility of opportunities, maintaining cash flow, budgeting, forecasting, financial modelling, etc. Other traits that the best virtual CFOs possess include:

Forward-looking strategizing:

A business wants a financial head who can look to the future, reduce the risk and uncertainties through strategies, and prepare the firm for growth. An excellent virtual CFO will possess this trait. The bookkeepers, outsourced accounting services providers, and controllers manage record-keeping and have backward-facing roles. They prepare and produce clean, organized, and accurate financial records. However, a company also requires some forward-thinking to function smoothly. A virtual CFO must consider forecasting using historical numbers, trend study, competitor analysis, and strategic modelling. Preparing a blueprint enables businesses to achieve their financial goals. 

Strategic partner:

Virtual CFOs must act as strategic partners to provide financial data and reporting and move the needle towards progress. They take a holistic view of its internal operations and external factors. A virtual CFO monitors every activity, provides insights, and prepares strategy based on competitors' steps and other external considerations. An integral asset to the firm, a virtual CFO ensures optimized performance, improved capability, and strategic adjustments for higher profitability and productivity.

For instance, virtual CFOs can conduct an in-depth study of the product lines to signify which is performing correctly, under, or over. Based on the view, they can determine the reasons behind the low or high performance and make adjustments wherever required. So, if they need favourable supplier relations, pricing, sales, or marketing adjustments to improve performance or cutting it all together will work. 

Realistic CFO services:

A virtual CFO with years of experience will know how the operations work in the real world than in theory. Unlike inexperienced or fresh CFOs who implement theoretical practices to generate results, experienced CFOs analyze the current situations and mold the strategies to fit the context well. Thus, the outsourced accounting services make the growth process smooth and seamless. 

Advanced modeling tools expertise:

An excellent virtual CFO will possess the skills to use the latest financial modeling tools. It will allow them to prepare short, mid, and long-term forecasts by considering financial statements, conducting ratio analysis, and using more advanced tools. The tools include-

• Contribution margin analysis
• Breakeven analysis
• Pro forma cap table and liquidation
• Product line analysis
• Revenue bridge analysis

It helps prepare more advanced strategies.