5 Ways A Virtual CFO Can Rapidly Grow A Consulting Firm

Are you looking to scale your consulting firm by increasing revenue, cash flow, and profits? 


Are you aware that eight out of ten consulting firms with dedicated bookkeepers and accountants fail to scale rapidly due to financial mismanagement?  


This is where a Virtual CFO can become your saving grace.


A CFO (Chief Financial Officer) can formulate financial strategies that will enable you to eliminate financial growing pains. However, hiring a full-time CFO can be very costly. The alternative to receiving the same and in some cases greater benefits is by hiring a virtual CFO (VCFO) for your firm.


In this episode, I will identify how adding a VCFO to your team can improve consistently and growth at a rapid pace. 

A virtual CFO is an experienced accounting professional who provides financial support, strategies, and solutions via a remote setting. They empower you to gain financial clarity, control, and consistently increase cash flow. 


As you work to scale your firm, you may begin to encounter various issues such as: 

  • A decrease in working capital
  • Payroll allocation challenges
  • Decision-making issues like which projects to undertake or which markets to enter
  • Money leaks and taxation issues
  • Invoicing and slow collection process 
  • Strategic planning and industry analysis
  • and many more!

 You might say - “You already have a bookkeeper and accountant in your firm to look after these things.” 


Unfortunately, most bookkeepers and generalists’ accountants are not equipped to assist with the complex needs of a growing seven-figure consulting firm. They cannot develop the strategies, systems, solutions and provide the support needed to bridge the gap between 'where you are' and 'where you desire to be,' Which is a profitable consulting firm.

 

This is where a virtual CFO will help.


What is the difference between Virtual CFOs and Accountants?


An accountant maintains, audits, and inspects the financial records of your consulting firm. Some accountants may specialize in tax matters and some may only focus on bookkeeping.


 But can they make these numbers make sense and give you strategic financial insight, oversight, and foresight?

 In most cases, No.


On the other hand, a virtual CFO has a vast amount of practical experience managing various financial tasks for different industries, corporations, and professional businesses. 


For example, here at Say Yes To Profits, we specialize in helping consultants leverage their numbers to set, achieve, and exceed their financial goals. We help you improve business performance and shift the financial trajectory of your consulting firm forever. We focus on crafting and executing advanced financial strategies that will reduce tax liabilities and maximize cash flow and profits. 

Additional Virtual CFO Services

  • Capital Budgeting & Resources Planning
  • Financial Budgeting & Forecasting
  • Cash Flow & Working Capital Management
  • Accounting Health Check Services
  • Accounting Policy & Procedures Preparation
  • Risk management & Internal Controls Consulting

Further, a virtual CFO can help you with fundraising, preparing an ideal capital structure mix, and developing and executing financial forecasts for your consulting firm.


Still, wondering if you should really fire a virtual CFO? Well, here are five ways a virtual CFO can help your consulting firm achieve maximum results immediately.


1. Develop & Execute Proven Financial Solutions 

 

These trained professionals streamline your firm's financial management system by filling the knowledge gaps in monetary issues. They confidently offer fiscal solutions specific to your consulting firm and provide accurate financial reporting. They allow you to save time and money and gain financial peace of mind as your firm grows.


2. Enabling High-Level Strategic Decision Making


They analyze your firm's finances and provide expert advice on capital budgeting, resource allocation, financial budgeting, and forecasting. They oversee the risks, uncover weak spots, identify opportunities, and create a realistic and actionable business plan for your firm. These functions help you in conceiving more informed, strategic decisions for ongoing profitability and future growth.


3. Raising Business Capital 


Adding investors irresponsibly to raise capital can change the power dynamics of your consulting firm.  Virtual CFOs can suggest the best ways to raise funds while you focus on rapid growth. They design a financial story that will help you pitch for funding through various options like venture capital, business loans, or crowdfunding. They also help in developing a budget to discover ways to cut costs and spend funds more wisely.


4. Managing Risk 


There are many risks in growing a consulting firm. A client can sue consultants and consulting firms, threatening the reputation and ongoing success. Additionally, risks like fire, theft, loss of sensitive data, or cyber-attack, if not managed appropriately, can damage the long-term growth of your firm. A consulting firm owner must also prepare for the risk of an economic downturn such as COVID-19 and other events. 


A virtual CFO can perform a risk assessment and guide you to invest appropriately in competent insurances and save wisely to prevent financial struggles regardless of the risk and the economy. They can help you set protection protocols to secure sensitive data, equipment, and intellectual properties in your consulting firm. 


5. Providing Independent Perspectives while Facilitating Change


At times, you need a fresh pair of eyes to see through complicated business situations. A virtual CFO gives you that independent perspective. They work objectively and help in resolving issues efficiently in a timely and cost-efficient manner.

 

Moreover, they measure and evaluate the long and short-term business performances of your consulting firm.  When they find your firm in a negative cash flow position, they help you determine the key factors to change and facilitate in taking immediate corrective actions.

 

Are you ready to rapidly grow your consulting firm?


We have designed our virtual CFO services keeping in mind the consultants and consulting firms. At Say YES to Profits, we help you achieve new heights of success by providing comprehensive and detailed financial insight, oversight, and foresight for your firm. 

 

We strategically plan to increase your firm's revenue, cash flow, and profit margins and provide proven strategies to reduce your tax liabilities. With us, you can achieve greater financial visibility, scalability, and profitability, enabling you to grow your firm at an exponential rate.

 

So, is it time for you to step fully into the CEO role while having the confidence in knowing your financials are in order and you can leverage them strategically to scale your consulting firm to the next level?

 

If so, schedule a complimentary Discovery Session by clicking here or contacting our office at 1.888.966.7438.

Octavia Conner Virtual CFO

About Octavia Conner


Known as the Million-Dollar Virtual CFO, Octavia Conner helps businesses and consultants prevent the struggle of entrepreneurship and earn their first or next million-dollars sooner than they think.


As the owner of Say Yes To Profits, a virtual CFO firm, Octavia strategically combines over 14 years of business and finances experience to help her clients grow between 30% and 350% within 12-months and save over 60% in taxes.


Selected as a Top 50 Cloud Accountant in North America, Octavia is a best-selling author and professional speaker who is passionate about helping businesses beat the tax game and say yes to profits!. For more information, visit sayyestoprofits.com


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Phone: 1.888.966.7438