Exploring the Benefits of a Virtual CFO

• Has the workload of your team increased, but there isn’t enough budget or time to bring on and train a new full-time employee?
• Do you have a short-term or urgent need for additional resource (for example, a one-off project or to fill a gap left by a resignation)?
• Perhaps you need assistance with a set of routine management accounting tasks (such as monthly or quarterly reporting), to free up your time?
• Do you want to tap into deeper commercial finance or accounting expertise whenever it’s needed?

If the answer to any of these questions is yes, then you may wish to consider supplementing your accounting or finance functions with outsourced expertise.

While commonly referred to as a Virtual CFO (vCFO) arrangement, at Nexia we offer a complete range of skillsets and seniority levels. This means we can customise a solution to suit your needs and budget.

There is a rise in the use of these styles of engagement, due to the difficulty recruiting new team members, and the move towards leaner workforces and increased automation (which can leave finance functions exposed when a team member leaves).

Below, we explain why you should consider a vCFO style engagement, and the options available.

Why should you consider this type of engagement for your business?

A Virtual CFO engagement has particular benefit in the SME space. While a traditional CFO attracts a high fixed salary, a vCFO arrangement can be more cost-effective as you just pay for the services you need. This means you get the benefit of CFO-level strategy input, insights and leadership when you need it, but at a lower cost and risk.

The placement of a vCFO can mean not only do you always have the expertise on hand to assist you with budgeting, strategy-setting, funding and governance; you also have unfettered access to the full spectrum of services Nexia offer; from guidance around financial and management accounting, taxation, to commercial finance and audit. It’s a great stepping stone or interim measure as your business grows, alternatively, it can be set up as a longer-term arrangement.

The services can be performed entirely virtually, or partially onsite, with either ad hoc or fixed hours over a set period of time.

And unlike a standard employment arrangement, a vCFO engagement can be wound up quickly if the need reduces or disappears; there is no need to restructure to remove roles or reduce cost, nor the need to actively manage poor employee performance.

What are the options available?

There is a comprehensive range of solutions available, each varying in terms of associated costs.

From standard remote ad-hoc advisory services, to embedding a seasoned Nexia team member within your business to oversee and direct your financial operations, highlighting the adaptable nature of these engagements.

Alternatively, if you just need assistance with more routine tasks such as, monthly reporting or weekly cashflow analysis, bank reporting, or pulling together supporting workpapers for an upcoming audit, junior and intermediate accountants from audit, tax and business advisory or corporate finance, can be placed in your business on secondment part-time, engaged remotely to assist, or a mix of both.

This can present an ideal solution for plugging temporary gaps in your workforce, at a reasonable cost where it is recurring work. It may be that a combination of all of the above is needed and multiple advisors at different seniority levels share the role.

Do you need a vCFO?

In summary, you might consider using Nexia’s vCFO services if:

• You’re a new business with uncertain cash flows but in need of good financial leadership and advice
• You’re expanding your business and need assistance with funding, strategy, or project workload
• An economic downturn is having a negative impact on your profit and/or cashflow and you need to look at ways to reduce spending without impacting revenue
• Your business should be profitable – but isn’t
• You need to raise capital, re-finance, or reduce debt

Talk to our experts

To learn more about how a Virtual CFO or our outsourced accounting solutions could help your business, please reach out to your local Nexia Advisor. We can tailor the right solution to suit your business needs and budget.

Nexia is one of New Zealand’s best accounting and business advisory firms with offices in the Christchurch CBD, Albany and Newmarket in Auckland  and Hastings, Hawke’s Bay.