What is a Virtual CFO?
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A simple analogy may help you more clearly understand the role of a Chief Financial Officer (CFO) in a business.

Think of a business like a bicycle. The bicycle has the following three elements:

Bullet 1 Front Wheel - Sales and Marketing. This function is responsible for finding customers and helping them buy the company's products or services.

Bullet 2 Back Wheel - Production. This function is responsible for delivering the products or services the customers buy.

Bullet 3 Frame - Management. It has two functions. First is steering the bicycle down the path it should go. Second is control or keeping the organization running smoothly.

The leadership responsibilities are primarily the job of the Chief Executive Officer (CEO). Control is the job of the Chief Financial Officer (CFO).

In the past, the small business owner tried to perform both the roles of CEO and CFO. However, both roles are extremely hard to perform simultaneously. When the executive takes his eyes off of the horizon and starts to focus on the internal control issues the business loses direction. However, without attention to systems and processes, the company will begin to wobble out of control.

A Virtual CFO is a new adaptation to an old concept. It is made possible by advances in communication technology. The Virtual CFO does the same job as any other CFO with one difference—he is not on site. Rather, the virtual CFO stays in contact and maintains control by using powerful tools made available by advancing technology.