Firms serious about developing vCFO services need to create both capacity and leverage to service clients effectively and profitably. What services and software platforms do these firms use in 2021?
Firms serious about developing vCFO services need to create both capacity and leverage to service clients effectively and profitably. What services and software platforms do these firms use in 2021?
The owners of SMEs now have real time access to financial information in a way that was previously only available to larger firms. They are looking for professional advice on how to use this information to plan for growth and value within their business. Accountants who have experience in commercial business environments are ideally suited to provide this service through a focus on technology, analytics and leverage.
We recently surveyed around 220 accountants from accounting firms participating in our vCFO ESSENTIALS eLearning Course. Usually, partners or senior managers provide this service with some support from accountants and bookkeepers.
The top 10 services provided as part of the ‘vCFO’ platform were:
It’s clear that with the exception of bookkeeping, these services are largely provided in an ad hoc manner, usually in response to a specific client need or request. Firm still struggle to effectively leverage service delivery, which prevents them from achieving economies of scale required to provide these services in a cost-effective manner.
We also asked participating firms which software tools they were using to provide these services. The top 10 responses were:
Other platforms mentioned included Hubdocs, Change GPS, Cashflow Story, Float, Figured, Forecast 5, Harvest, Plan Guru, Xavier and Zoom. Overall, firms use a variety of tools focusing on financial reporting and forecasting, data analysis and review, project and workflow management.
When asked what key projects firms were undertaking to develop vCFO capability, responses included:
Firms serious about developing vCFO services recognise that they need to create both capacity and leverage if they are to be in a position where they can service clients effectively and profitably. For any firm struggling to meet its existing client service needs, a formal structure for the development of a vCFO platform is essential.
In collaboration with the Virtual CFO Association, CPD for Accountants has launched a new vCFO ADVANCED eLearning Course for accountants and advisors in public practice.
This eLearning course is designed to provide a comprehensive guide to financial reporting and strategic decision making for vCFOs. The course will also provide vCFOs, partners and managers with clear guidelines in relation to client engagement and project implementation strategies. For further information on the eLearning course:
Dale Crosby | Director, CPD For Accountants | www.cpdforaccountants.com.au