I had the distinctive pleasure of discussing my business as a virtual CFO with a Philadelphia area reporter recently.
As a result, she penned what I feel is an article that gives an excellent overview of what I do.
I’ve reprinted the piece in its entirety below. Enjoy!
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Virtual CFOs find acceptance in gloomy economy
by Sarah E. Moran
DOWNINGTOWN - “Outsourcing” might well be a dirty word to some.
But for others, in particular small and medium-sized business owners, outsourcing certain functions is one way to stay in business during tough economic times.
Enter FinancialFutureCFO.com, a virtual chief financial officer outsourcing business based in Downingtown, one of many companies nationwide that provides as-needed CFO services.
According to FinancialFutureCFO.com founder Scott A. McPherson, a certified public accountant, “We offer ‘on demand’ solutions and work with our clients on a per-project, part-time or full-time basis. Our clients receive … CFO services for a fraction of what they would pay a salaried employee.”
Six or seven people work for McPherson as independent contractors, charging between $85 and $225 an hour to provide either virtual or in-person CFO expertise, be it budgeting, auditing requirements, cash flow management, economic advice or other financial and accounting-related tasks.
As the recession progresses, McPherson explained, “A lot of companies are letting their higher level executives go, and outsourcing the work they once did to companies like mine. They no longer have to pay benefits or a full-time salary to a full-time employee they don’t really need.”
Oftentimes, a full-time CFO at a small or medium-sized company pulls down a salary ranging from $100,000 to $200,000 a year, he noted.
FinancialFutureCFO’s clients are all over the country and number between 10 and 20 at any given time.
Among his Chester County clients are U.S. Environmental Systems in Downingtown and Reproductive Science Institute of Suburban Philadelphia in Tredyffrin.
Some clients want a part-time CFO at their office two or three days a week. Others need help with a particular project or service, and communicating via e-mail and phone is contact enough.
If the “virtual” aspect of McPherson’s business model makes a client uneasy, for any reason, “There’s always teleconferencing or we can be there live,” he said.
At this point, “Many businesses don’t need a full-time CFO,” he said. “We go in and analyze what they’ve been doing and what they need going forward. Sometimes companies have a full-time CFO whose position has outlived its usefulness.”
Commented FinancialFutureCFO client Ernest Cimadamore, executive VP of Always Moving, a Center City moving company, “By working with a virtual CFO, I experience the benefit of having a high-powered CFO, someone who knows the public and private sectors and can provide that expertise. But I don’t have to pay a salary, benefits, stock options or travel.”
Another benefit: Virtual CFOsmust learn, learn and learn some more, staying current with changes in accounting standards, tax law and other economic issues. Unlike when someone works as a CFO full-time, a company using FinancialFutureCFO need not pay for its part-time financial expert to attend courses, classes and seminars.
McPherson was with Morison Cogen, a Bala Cynwyd accounting firm, for eight years before forming his own company. “I like getting out and about with people because sitting behind a desk isn’t really my thing,” he said.
McPherson estimates that he spends 10 to 15 hours a week on managerial tasks and the rest of his time working with his virtual CFO clients.
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