Woodridge is a good place to find Virtual CFOs. You can actually find Virtual CFOs anywhere there are small to mid-sized companies that don’t yet have a full time, qualified CFO, but they recognize the importance of financial management expertise and insight to their success.
A common question we hear is, “what is the difference between a controller and a CFO?” A controller in Woodridge will focus on recording day-to-day financial transactions, and reporting them as historical results. A controller may also be able to throw in some basic financial analysis of those results.
A CFO will not only capture and report a company’s financial history, he will also project the future. Large companies have full time CFOs to do this, small to mid-sized companies have part time, or Virtual CFOs.
That is the simplified version. Of course there is more to it than that. A CFO or Virtual CFO for Woodridge companies will project future results, project cash flow, and help assure a company has arranged for the funding it needs to accommodate its growth. Virtual CFOs will also analyze operations processes to improve efficiency and profitability.
One method to accomplish this is by identifying Key Performance Indicators (KPIs). This is a process by which a Virtual CFO breaks down the Woodridge company’s operations into its significant components, determines what constitutes good performance for each component, develops a method to measure results for each component, and then reports results. It’s amazing how just putting a focus on something will improve results. The team responsible for that component of the operation will generally take it upon themselves to improve their performance without any prompting from management. When all components of a Woodridge company are operating at peak efficiency, the company will be able to maximize its profitability.
If your Woodridge company has accurate, clear and transparent financial records; gets insightful financial analysis; is operating at peak efficiency; and, has a clear plan for funding future growth, then it is surprising you are still reading this. If it does not have those things, call Virtual CFOs and find out how your Woodridge company can get them with a real (Virtual) CFO, at a fraction of the cost.