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How to Establish an Efficient Virtual Finance Department

June 22, 2022

A common cause for failure in small businesses is the lack of an efficient and accurate finance department. Many small businesses tend to grow quickly or in spurts until stabilizing into a steady growth with leads to issues in a finance department – specifically in those that are unprepared to handle quick adjustments or an onslaught of additional work. The is where establishing an efficient virtual finance department can become a lifesaver for your small business. 

What is a Virtual Finance Department?

Where a traditional finance department is in-house or hired to a local brick and mortar accounting and bookkeeping firm, a virtual finance department can be anywhere in the world – although it’s best to find one that specializes or is familiar with your state of operation. Virtual finance departments are hired out and handle your business finances from a distance and are only an email away. 

Virtual finance departments typically offer a range of services that match the stage of your business and have fluid levels that allow you to quickly adjust when in a stage of growth. Some services provided by virtual finance departments include:

Virtual finance departments are not limited to bookkeepers and accountants, some virtual finance departments even offer virtual CFO services and controllers. 

What Are The Benefits of Having a Virtual Finance Department?

Traditional bookkeepers and accountants have an established workflow, clientele, and team members – meaning that they have an expected workload and tend to stick with it. Virtual finance teams are adaptable and tend to work with your business and growth fluctuations, along with having insight on when those adjustments might be needed. Here are few other benefits of having a virtual finance department or team:

Quick Communication and Accuracy

A virtual finance team is only an email away where traditional departments may take a few days to respond. Additionally, virtual finance departments often keep financial records each day with a report on a regular basis. Not only is this useful when you need an accurate assessment of your current financial status, but it’s readily available when you are preparing for a report or forecast.

Understanding of Online Businesses or Alternative Business Structures

Without the restrictions of traditional brick and mortar, virtual finance departments have the ability to work with and gain experience working with online and alternative business structures. This helps with their management and tracking of your finances along with expectations for reporting or which service you truly need for your business. 

Establishing a Strong Financial Workflow and Accounting System

Virtual finance departments still have their usual accounting system and workflow, but are prepared to adapt the workflow to suit the specific needs of your business. They also have clear expectations of you as a business owner and business (keeping you inflored on what’s necessary) as well as the deliverables that they give to you and when.

Ready to get started with a virtual finance department for your business? Contact ModVentures here.

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