Believe it or not, there was one benefit from the global coronavirus pandemic. It demonstrated to businesses worldwide that millions of jobs could be performed virtually. The days of crowded cubicle space and large office buildings may be over.
In fact, studies commissioned by the U.S. Bureau of Labor Statistics estimate that 37% of jobs can be performed entirely at home.
In particular, the Chief Financial Officer (CFO) is one position that can be performed virtually. Read on to learn the benefits of virtual CFO services. Explore five benefits of transitioning to a remote CFO.
Virtual CFO advantages always start with cost. It is cheaper to hire a virtual employee rather than an onsite presence. The salaries for an onsite vs. virtual CFO could be equal, and the virtual option is still cheaper.
For starters, a virtual CFO does not receive benefits or bonuses. It is a fixed cost to the company outsourcing the work.
Also, hiring a virtual employee reduces indirect costs. Your overhead and other indirect costs are going to be lower with a virtual employee.
Studies show that remote workers are more productive than their onsite counterparts. Working from home one day per week, for example, increases productivity by 13%.
There are fewer distractions in a virtual setting. Employees are no longer bogged down by an overly talkative coworker or unproductive meetings. They are also eliminating long commutes and other inefficient uses of time.
3. Less Office Space
Typically, the CFO has a big and beautiful office. While this is a nice perk for the employee, it takes up valuable space.
You can reduce your company’s physical footprint by relying on a virtual CFO and other remote employees. The freed space can be repurposed for another business requirement. Another option is to find a smaller office space with a cheaper monthly payment.
Some decision-makers fear losing an experienced CFO by hiring a virtual alternative. However, this could not be further from the truth.
Service companies that offer up virtual CFOs have an experienced roster to choose from. Their CFOs have the proper education and training. They also have virtual CFOs with industry-specific experience that is best for your company’s requirements.
There are some positives to bringing in an outside consultant. In some cases, a cohesive workforce develops tunnel vision and group-think.
A virtual CFO is going to bring a fresh set of eyes to your company’s executive team. Virtual employees are independent thinkers and bring an objective viewpoint to the team. This independent perspective helps the company identify potential issues earlier and mitigate risk.
Virtual CFO Services Are Advantageous to Your Business
Clearly, there is a strong case for adding a virtual CFO to your team. They bring a wealth of experience and an independent perspective to the company.
Virtual executives are cheaper and more productive as well. They allow you to downsize office space and reduce overhead expenses. If you are interested in adding virtual CFO services to your business plan, contact us today to get started.