A Virtual Finance Function (VFF) is an outsourced or partially outsourced finance service that provides support to businesses with financial activities, which typically include:
- Bookkeeping and transaction processing
- Management accounts and financial reporting
- Cash flow forecasting, planning and budgeting changes
- Financial control and data management
- Strategic insights from qualified and experienced finance professionals
It uses modern cloud-based accounting tools, automation and remote expertise to deliver finance services without the requirement for large scale in-house finance teams.
What are the benefits of a Virtual Finance Function?
There are many benefits from engaging a Virtual Finance Function, especially for growing businesses, all of which offer opportunities to enhance effectiveness, efficiencies and cost savings.
Staff Cost Savings
Virtual Finance Functions can be more affordable than hiring and maintaining an in-house finance department, especially if only a few finance services are required, therefore saving costs on salaries, training and office overheads. Businesses requiring more comprehensive finance services can take advantage of a full finance team, often including CFO-level support, without the associated costs.
Predictable, Transparent Costs
Most Virtual Finance Functions offer fixed monthly fees, avoiding the unpredictability of ad-hoc accounting costs, making budgeting and cash flow much easier.
Increased Efficiency & Accuracy
With the use of modern cloud-based software, Virtual Finance Functions require much less human input. This saves time and reduces the risk of mistakes and missed deadlines. Improving financial governance, by ensuring financial records are accurate and reliable, offers reassurance that processes are compliant with legislative requirements.
Flexibility & Scalability
The flexibility offered by Virtual Finance Functions enables finance support to be increased or decreased in line with business needs, avoiding the complexities and costs of hiring, downsizing or restructuring a permanent staff team. This is especially appealing to businesses undergoing periods of growth, as they can upscale support quickly, easily and cost-effectively.
Time Saving
By outsourcing company finances, business executives can focus more of their time on customers, growth, and strategy, rather than admin, paperwork and staffing. This in turn can allow the business to achieve strategic ambitions more quickly.
Strategic Decision Making & Resilience
Using cloud-based applications offers up-to-date financial data dashboards and management information, meaning there is no need to wait for month-end reports and figures to assess performance. This significantly helps business executives with decision-making, growth planning, scenario assessments, profitability improvements, and real-time financial risk management.
Access to Expertise
Business executives can access high level specialised financial knowledge and experience, including strategic financial planning, budgeting, and forecasting, through Virtual Finance Functions, that may not usually be available or financially viable within a small in-house team.
Enhanced Data Security
Centralised data and enhanced data security offered by Virtual Finance Functions provides peace of mind in terms of safeguarding business and employee information.
Time For Transformation?
In summary, there are numerous benefits from engaging a Virtual Finance Function within your business, most notably the efficiencies, effectiveness and cost-savings, as well as the advantage in gaining expertise and control over your finances and the direct positive impact this has on your business operations and growth.
Find out more
Intrigued by the benefits of a Virtual Finance Function and how it could positively impact your business? Reach out to our team for more information at: mail@mmgca.co.uk. You can also visit us in branch – see our office locations on our contact page.