Virtually all large corporations, and many mid-sized enterprises as well, know the value of their dedicated Chief Financial Officers (CFOs).

And if they don’t, they ought to! New research (published in October 2024) by OneStream as part of their Finance 2035 initiative, shows that investors consider a CFO’s skills, acumen, and performance even more important than those of a company’s Chief Executive Officer (CEO)!

But what if you are the owner of a smaller, closely held enterprise? Very few such companies have a dedicated CFO – most often, the owner combines the functions of CEO and CFO (and usually wears more hats than those two!).

But under those circumstances – and in the fast-moving business world – it can be difficult, if not impossible, for business owners to give their CFO duties the attention, care and expertise – not to mention the objective view and dispassionate mindset necessary – for a CFO to function at optimal levels.

This can lead to the business being less efficient, less effective and less profitable, than it could be – which obviously isn’t good for the business, the business owner, their clients, or their team members.

So, what is the solution for these business owners? One answer might be:

A Virtual CFO

A virtual CFO (also known as a fractional CFO), can provide your closely held business with all the benefits of a CFO at a fraction of the cost of a full-time, dedicated executive.

In addition, a virtual CFO, being outside your organization, can provide objectivity of observation as well as a dispassionate outlook at all the factors impacting your organization’s profitability.

We are invested, certainly – in your and your business’s long-term success, not just in an individual projected project’s coming to fruition. Some projects you contemplate may not be in your business’ best interests at all. Others may be good ideas, but not for implementation in the near term. Still others may be exactly what you and your business need. Your virtual CFO will help you discern which contemplated project falls into which category.

A good virtual CFO can guide you, gently and in partnership with you, toward the paths that will lead your business to its optimal state – an efficient, profitable concern, and a happy working environment for you and your team. Not to mention happy, well-served clients!

What Can a Virtual CFO Do for Your Business?

Quite a lot – or a minimum. That depends on you, the business owner. Because a virtual CFO is nothing if not flexible and adaptable. And our services are scalable to your business’ changing needs.

At RFG, we begin conversations with potential new virtual CFO service clients by asking questions – and listening carefully to your answers:

• What do you and your business need right now?
• What would you like your business to achieve over the next year? The next 3 years? In the long term?
• What do you envision as the steps to get you to your goals?
• What risks does your business face at present? What risks do you foresee in the long term?
• What are your personal goals, for yourself and your family?

Once the above answers are established, your virtual CFO can help you develop:

• Streamlined financial processes, including a “financial dashboard” which will give you access to your business’ current status at any time.
• Key performance indicators (KPIs) relevant to the success of your individual business (not all businesses, even of the same size and in the same industry, will necessarily have identical KPIs – so much depends on the current state of the business and, most of all, on the owner’s goals).
• Budgets and financial forecasts, and in-depth analyses of results. Because, while budgets and forecasts are and will always need to be dynamic (i.e., subject to change at any time, based on realities), and will therefore be imperfect compared with actual results, it is even more important to understand why results differ from projections than that they differ.
• Plans for capital improvements to the business – or empirically-based counsel on why to postpone facility improvements, strategic new hires, or equipment purchases and upgrades.

In one case, a client of ours who traveled extensively for business-related conferences was frustrated by the long lines, waiting times, and delays of commercial airlines, and wanted to purchase a private plane. We analyzed the financial picture, searched for other potential solutions, and recommended this client band with others in his industry to charter planes together for travel to and from conferences.

By this means, the client was able to bypass the expense of the plane’s purchase price, the costs of maintaining hangar space for it, and the annoyances of commercial air travel.

Your virtual CFO is, in essence, your most trusted business advisor. Someone you can go to with questions, secure in the knowledge that we either know the answer now or can find it faster than you will on your own. We know what questions to ask and who to ask them of, and where to look for further information.

We bring not only our own team of experts, but a network of experts in various fields, built over decades.

When Does Your Business Need a Virtual CFO?

If you’re asking that question, call us and find out whether the answer, for you and your business, is “next year” or “yesterday!”

Some of our virtual CFO clients actually came to us to assist them as they made plans to transition from employees to entrepreneurs.

These start-up businesses varied as to industry, outlook, and owners’ temperaments. But they all followed our advice, their businesses were profitable within 2 years, and are all still profitable, going concerns.

Another client hired us when he and several partners decided to purchase a going business. They have been using our virtual CFO services since before the purchase was complete and are making a very nice success of their endeavor.

Really, is it ever too early to think about making your business efficient, effective and profitable?

Final Thoughts

A virtual CFO can:

• Provide your business with all the benefits of a CFO at a fraction of the cost of a full-time hire.
• Give you a better understanding of where your business is now, and how to get it to where you want it.
• Streamline your financial processes and procedures, providing you with a clear picture of your financial situation.
• Advise on strategic decisions.
• Be your most trusted, your go-to, business advisor.
• Make your business more profitable, more effective, and more efficient.

If you are serious about your business’ long-term flourishing, we invite you to talk with us – our expert virtual CFOs are as serious about your business as you are!

And we know it all starts, and ends, with you. Not only do we know that, we love it – being all about you is what we are all about!

Please click here to email us directly – Rigby Financial Group’s trusted, expert team are always at your service – that’s what we are here for! And serving you is also our passion.

Until next time –

Peace,

Eric