It’s time to work with more than just historical data. Our Virtual CFO services are built around a proactive approach to your business’s financial health through analysis, forecasting, budgeting, and more.
When you imagine a Chief Financial Officer, you might picture a full-time C-suite executive in their corner office of a high-level corporation. You may think that CFOs are only necessary for major companies, or that your business isn’t at the level to utilize one.
In reality, businesses of all sizes can and should be utilizing a CFO.
A CFO is simply the primary manager of a business’s finances, including for planning, strategy, and trusted advisement.
While large companies may have that full-time corner-office exec, smaller companies can get the benefits and experience of CFOs at a smaller cost by hiring a Virtual CFO (also called ‘Outsourced CFOs’, ‘Fractional CFOs’, or ‘External CFOs’).
Chief Financial Officer vs. Accountant
Despite some overlap in responsibilities, CFOs are not accountants.
One of the most simple ways to understand the difference is that accountants are responsible for the past while CFOs are responsible for the future.
Typically, accountants (with the support of bookkeepers) are responsible for maintaining your financial records as things happen. They will maintain your books with your income and expenses; they will generate reports to keep you informed of your business’s financial health; and they ensure that all data is up-to-date for month- and year-end processing (including for things like taxes).
On the other hand, a Chief Financial Officer is responsible for interpreting that historical data to take a proactive approach to bettering your business’s financial health. For example, they may take the reports generated by an accountant (under the CFO’s management) to create a budget, forecast your cashflow, or create a plan to maximize profits.