While a chief financial officer (CFO) might seem like something only a big corporation can afford, more small business owners are turning to the advice of virtual CFOs to boost their profit and grow their businesses according to new research by CFO-On-Call.
While the concept is still relatively foreign within the Australian business vernacular, engaging the services of a ‘Virtual CFO’ has seen SME owners that embrace the trend coming up trumps. SMEs that use a virtual CFO experience an average profit growth of 51 per cent over three years, according to CFO On-Call’s research.
As the largest virtual CFO service in Australia CFO-On-Call matches leading financial and business growth experts with SMEs on an as-needs basis. CFO On-Call Director Sue Hirst says the service provides SMEs with expert advice at the fraction of a cost of employing a real-world CFO for their business. These financial experts are able to assist business owners to create business strategies to increase efficiencies, output and profits.
“It’s a common misconception that growth in revenue equals the same rate of growth in profit,” said Hirst.
“In fact, many businesses actually see their profit decline as revenue grows because their priority strays from the bottom line.”
Hirst says by utilising the services of a virtual CFO, business owners are more likely to keep their eyes on the prize – business growth.
Hirst suggests the benefits of a virtual CFO go beyond streamlining costs and expenses. An audit of clients who regularly use CFO On-Call’s services found that, on average, their profit had increased by a staggering 51 per cent between 2016 and 2018. The businesses surveyed had an average turnover of $16 million.
“Not every business can afford the services of a full-time CFO to help navigate financial growth strategy, so the growing popularity of the Virtual CFO is helping to level the playing field,” said Hirst.
“We always knew our clients were experiencing some significant benefits, but it wasn’t until we crunched the numbers that we realised just how well they were doing,” she said.