Why Australian companies are turning to outsourced virtual CFOs - explained

Operating a company in Australia can provide great rewards to investors and shareholders alike. Providing an outstanding service can soon see the list of clients spiral, especially once the reputation of the organisation starts to grow. This might be a revamp of its SEO and a new digital marketing strategy to make use of technology and begin to appeal to a wider audience.

Support from the Australian business environment is often available, with the nation providing an attractive base for entrepreneurs and investors who may consider a startup. The finances of companies, old and new, rely on robust financial management. Sustainability and scalability are both important factors to consider, which is where an outsourced virtual CFO is becoming an increasingly popular option for the following reasons.

• An experienced Chief Financial Officer (CFO) can be invaluable to a company, with one that is outsourced still providing expertise without the cost of employing a full-time executive. It is expensive to have someone full-time on the books when they might not always be required. This is one way that smaller and mid-sized companies can make vital savings, while still having access to a professional financial consultant whenever they need one.

• The benefits of still being able to call on expertise are vital. Those who decide that they can make an even greater saving by not bothering to have a CFO will soon find themselves with problems. The virtual outsourced member of the team will be able to provide insights so that the right strategic decisions are made. They may know all about mutual fund returns, while other advice can often lead to growth and expansion, considering risk assessment.

• It is not unusual for a company to have financial inefficiencies. Nobody is perfect. However, if they are not identified, it can soon lead to issues accruing and even more cash being haemorrhage. Unnecessary expenses that are being paid out can be found and reduced, so that new systems can be implemented which optimise cash flow and lead to a healthier bottom line, something all operations should aim for. 

• Having scalable support is extremely important for the way any company should aim to operate. As it grows through receiving the best advice, it can then continue to increase its use of an outsourced CFO, and then, when things might slacken off, it can reduce its commitment without any loss of jobs. The expert might offer knowledge about company director ID numbers, as well as providing flexibility.

• Any restructuring phases become far easier to deal with when having the support of an outsourced CFO, understanding as they do how a company can remain compliant with Australian law and all its financial regulations. Tax issues will be dealt with competently, as well as the preparation of accurate reports for stakeholders, banks, or potential investors. All of which saves the company that hires them time and money.

A virtual outsourced CFO is a great way to ensure flexible and scalable financial expertise is continually available while saving a company money.