Did you know that 20% of businesses fail in their first year and around 60% will go bust within their first three years? One of the main reasons why businesses fail is because they run out of cash. They often lack clear financial goals and fail to understand the profitability (or lack thereof) of their business model.
Founders are busy focusing on product development, day-to-day operations, sales and marketing, or the million other things a business owner does. They tend to struggle with cash flow management, monthly financial budgeting and reporting, bookkeeping, and payroll processes and tax compliance. This is what a skilled Chief Financial Officer (CFO) with a team of in-house accountants and bookkeepers does. But it doesn’t come cheap, and most start-ups or growing businesses don’t have a spare half a million dollars to build an internal finance department.
Enter the Virtual CFO - Solving Problems for Small Business
Virtual CFO services give small businesses access to a team of finance experts at a fraction of the cost of building an internal finance department. Big businesses have big finance teams to execute essential business and accounting functions such as bookkeeping, payroll, accounts receivable, accounts payable, monthly reporting, and many more. Small businesses often outsource these functions to various providers, but with BlueRock’s Virtual CFO services, everything can be managed by one team — our multidisciplinary team of experts. You can also choose the Virtual CFO package that best suits your business, and scale things up seamlessly as your business grows.
How a Virtual CFO Can Support Your Business
Depending on the level of engagement required for your business, a Virtual CFO can support you like an in-house accountant, all the way through to a fully-fledged chief financial officer running your company finances.
There’s a variety of outsourced CFO services out there, but not all can perform the duties below. An effective Virtual CFO will support your business by:
- Preparing monthly financial reports and forecasts to monitor and measure business performance
- Using their financial knowledge to advise the company on cash flow management, annual tax planning, business strategy, profit improvement, budgeting and more
- Providing essential bookkeeping services like Single Touch Payroll, superannuation, Workcover, supplier invoices and payments and more
- Reviewing systems and automation opportunities, benchmarking and ratio analysis, margin analysis and more.
Why Your Business Needs a Virtual CFO
A Virtual CFO can make a significant difference to small businesses by seeing things from a different perspective and keeping an eye on the future. Think about it as the opportunity to solve financial problems before they become problems. A lot of founders are incredibly passionate about their chosen industry or product, but not as passionate about the numbers, compliance or market forces that might impact them.
A Virtual CFO monitors company spending and highlights trends in the market that could provide growth opportunities. They can also provide advice to support business decisions, based on financial performance rather than emotion.
Dealing with growing pains is another reason why your business needs a Virtual CFO, and with BlueRock’s holistic approach, you’ll be in safe hands when it’s time to scale up. When required, the same expert team who provides the services we’ve already discussed will be there to help with:
- Capital raising including pitch decks, financial models and valuations
- Owner issues including succession planning and asset protection
- Employee share options plans
- Securing grants and incentives.
What BlueRock Clients Say About Our Virtual CFO Service
STUFF™ keeps things simple for men with a range of personal care products that are Australian made, vegan and cruelty-free, and have no B.S nasty ingredients. A purpose-led business, STUFF™ helps fund life-changing mental health programs through their charity partner, The Man Cave. They’re also a BlueRock client and subscriber to our Virtual CFO offering. Here’s what General Manager Michaela Davis has to say about it!
“BlueRock’s outsourced accounting service is an invaluable part of our business. Having one team prepare our bookkeeping, payroll and financial reporting provides a seamless experience, and the monthly reporting and meeting cycle keeps us on track to focus on what’s important for us to reach our business goals. Also, the regular catch-ups mean that BlueRock is fully across our strategy and feel like part of our team.
The accounting services team provides management accounting services, including annual forecasting, budget to actual variance reviews and margin analysis and have helped us with multiple capital raises and an employee share scheme (ESS). It’s a great partnership that allows us to work alongside a fellow B Corporation and together run great businesses that have a positive impact!”
Talk To Us About Your Finance and Accounting Needs
If you're a small business looking for help managing your accounting and finance, BlueRock's Virtual CFO service might be the perfect solution for you. We offer professional services at a fraction of the cost of hiring a full-time CFO. Contact us today to discuss your Virtual CFO options and see how we can help you take your business to the next level!
